Fastenal Demonstrates How a Service Company Can Leverage eCommerce for Growth
Some B2B companies have been hesitant to dive into eCommerce because their business operations don’t correspond with the traditional eCommerce model: the sale of products online through an eCommerce website. After all, how can consultancies and service organizations leverage an eCommerce store for transactions that often involve long contracts and multiple face-to-face touchpoints?
One company worth exploring, Fastenal, is well-known for its industrial and construction products. However, it’s also a consultant, a logistics company, and a technology provider. The company has found a way to leverage eCommerce not only for product sales but also for other aspects of the business.
In this blog post, we’ll explore how Fastenal adopted an omnichannel eCommerce strategy to produce significant growth.
Fastenal’s Total Digital Footprint
According to an article by Digital Commerce 360, Fastenal’s true eCommerce journey started in 2016. At the time, eCommerce accounted for less than 6% of total sales at the company. This was the business landscape that Dan Florness entered when he become president and CEO that year.
Since making changes to the company’s eCommerce strategy, the company now says eCommerce accounts for 50% of its total sales, or around $901.20 million.
What changed? The company decided to embrace digital sales through its other digital channels—what it refers to as its "Digital Footprint.” Now, digital commerce is expanding throughout the company’s operations, including its service arm.
Fastenal has a network of more than 1,700 physical branch locations. The company empowered these locations to support customers’ eCommerce transactions. That means the company's physical footprint is supporting its eCommerce operation through fulfillment and service delivery, while the eCommerce branch supports the company’s physical locations with business.
The company’s digital growth is "coming from a lot of activities throughout the organization, which means it’s becoming part of our DNA,” said Florness.
Florness added that Fastenal’s growth trend in ecommerce is following similar trends in the company’s broader digital footprint. That includes its vending machines and OnSite inventory management services.
What Other Companies Can Learn from Fastenal
Other B2B companies can apply a similar approach to Fastenal's strategy by leveraging the power of each channel to support their eCommerce operations. Companies should start by focusing on their existing physical locations and turning them into hubs for eCommerce fulfillment, service delivery, and other aspects of the business. Additionally, companies should invest in service delivery solutions, such as inventory management services that can help them expand their digital footprint.
It’s also important for companies to invest in boosting the customer experience on their eCommerce sites. This includes making sure it is intuitive, easy-to-use, secure, and fast. Each eCommerce account can be personalized based on the user's location, purchasing behavior, industry, and more.
This way, a company can use the eCommerce function to order parts and services via their local service branch.
Overall, B2B businesses that have multiple departments or don't have a heavy product sales footprint should look to Fastenal as a source of innovation and inspiration. There are multiple ways to approach B2B eCommerce, and it can even be used to orchestrate multiple channels for a truly omnichannel service experience.
Don’t Miss B2B Online Florida
Plenty of B2B companies are only scratching the surface of what they can accomplish with their eCommerce functions. Moving forward, we’ll likely see more operations go digital, even in areas like service delivery.
If you’d like to learn more about how you can apply innovative eCommerce strategies to your organization, don’t miss B2B Online East. It’s happening October 16th to 17th at Hilton West Palm Beach, Florida.
Download the agenda and register for the event today.