How big is the threat posed by AmazonSupply? | BtoB Magazine

Analysts differ on potential impact on established MRO suppliers

Sean Callahan
May 14, 2012 – 6:01 am EDT

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Amazon.com last month introduced AmazonSupply, an e-commerce b2b business that offers industrial supplies such as fasteners, janitorial products and power tools.

The new service directly challenges Fastenal Co., McMaster-Carr Supply Co., W.W. Grainger Inc. and other industrial suppliers, and raises the question: Can Amazon do to these companies what it did to Borders and Circuit City?

Industry observers differ on the level of threat AmazonSupply poses, but they agree the e-commerce giant’s aggressive entry into this fragmented market will require industrial suppliers to strive to match its famously frictionless online user experience.

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