E-commerce as a business automation distribution platform

By Paulo Guimarães (Peghem)

Friday 20 May 2022

Reading time: 5 minutes

The digital transformation driven and accelerated due to the Covid-19 pandemic has changed the business landscape in the technology industry. The current transversal context, where markets, for example, compete with channels and, at the same time, are tools for the development of end-to-end channels, requires the distribution sector to reinvent itself. This is because despite the evolution of the IT market against GDP, with double-digit growth in investment since 2020, the needs of customers are constantly changing.

The 11% increase in distributor sales in 2021 is one of the data released in the results of the 2022 vendor census, an initiative of ABRADISTI – the Brazilian Association for the Distribution of Information Technology and AFRAC – the Brazilian Technology Association for Trade and Services, implemented by IT Data. The study interviewed 1,026 companies in this sector in the country in order to understand how they operate, what their business strategies are, the challenges they face and raise key indicators of sales channels in the ICT and business automation markets.

The digital transformation driven and accelerated due to the Covid-19 pandemic has changed the business landscape in the technology industry.

Growth due to the epidemic

In this sense, it is interesting to note that the study showed that companies that did not invest in e-commerce and were not prepared for the pandemic in 2020, sought to establish online operations quickly, even using alternative platforms and marketplaces. Excluding sellers operating exclusively as virtual stores, the percentage of sellers who did not engage in e-commerce prior to the pandemic was 69%. In the first quarter of 2022, the same survey sample indicated that 53% were still not engaged in e-commerce. However, 21% of survey respondents said they would embrace e-commerce in the next 12 months (103% more), and strong growth is expected.

For example, trade automation experienced a very critical learning period in 2020 due to a halt in trade for nearly 18 months. However, due to the need to digitize the market, it was possible to reinvent the way of doing business. Overall, the channel showed 12% growth. Prior to the pandemic, only 25% of commercial automation resellers were engaged in e-commerce. Today, that number has reached 55% and 33% intend to start the activity this year. According to the Eleventh Edition of the Seller Census in 2022, this was the type of seller where online sales grew the most.

turning point

Point of sale (POS) software, automatic identification and data capture (AIDC) products, such as barcodes, RFID, biometrics, voice recognition, among others, and POS terminals.

This is a tipping point that attracts a lot of attention and needs to be taken into account by those who work in this ecosystem. That’s because, while we see a lot of solutions being offered by commercial automation distributors that take businesses and various sectors of the economy to commerce online, with platforms, apps, and integration systems that support the entire buying and relationship journey. With a shopper, there is still an opportunity for them to use e-commerce as a driver of their results.

Although it is a very complex and advisory selling process, the numbers show that there is a demand for transactions that take place in the digital environment. The sector is expected to grow above double digits at the 12% level. And I think that someone who knows how to surf this wave can go further!

Read also: Process Automation: Information and Tips for Understanding This Strategy

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