Undeterred Investors
Two of the latest enhancements come from D&H Distributing and Avnet Hall-Mark. D&H, Harrisburg, Pa., plans to host free e-commerce portals for solution providers, while Tempe, Ariz.-based Avnet plans to launch an online suite of tools that helps solution providers track leads and customers over their lifetime.
Avnet's Channel Connection tool allows solution providers to check order status, sales history and transaction details. For example, it could be used to track the $165 million in equipment now leased by solution providers through the distributor, said Steve Tepedino, Avnet president.
Eventually, the tool will include financial and credit functions to make it more of a "secure online banking" application, Tepedino said. "Right now, phase one is information delivery. Eventually we hope to have accounts receivable online and much more," he said.
Meanwhile, D&H's online ordering portal will be branded through Rite2U.com, a Web site that allows end users to order products with preset prices. End-user visitors to Rite2U.com are asked to input their ZIP code, which delivers a menu of local solution providers to choose from. Solution providers can also link to D&H's portal through their own Web sites.
The portal is designed to capture revenue often missed by solution providers, such as printer cartridges, said Dan Schwab, D&H vice president of marketing.
"After you've sold a laser printer, most end users go to Staples to buy the toner cartridges," Schwab said. The portal would allow resellers to offer products like cartridges without having to stock them, he said. "There's no credit risk because we process the credit card," Schwab said.
Solution providers would receive 6 percent to 20 percent commission on products ordered through Rite2U.com, depending on the product, Schwab said.
About 600 solution providers have signed up for Rite2U.com in the first month, and D&H expects to launch 1,000 portals before year-end, Schwab said.
"I like the idea, as a small reseller, of having an e-commerce site. The problem I have is that I don't sell all those products. Nor do I want to sell all those products they carry, but you have to offer them all. It becomes a support issue," said Stuart Lipman, owner of Lipman Computers, based in South Windsor, Conn.
"If something goes wrong, who takes it back and who's responsible?" Lipman questioned. "They say they have a liberal returns policy, but who's to say?"