In 2017, the market for online distribution of electrical products was estimated to be worth £1.3 billion, having grown by almost 300% on 2012, according to a new report recently published by AMA Research.
This can be compared to growth of 20% within the overall electrical products market over the same period. Online sales are now estimated to account for around 8% of the overall electrical products distribution market, says the report.
This significant growth can be attributed to the fact that leading wholesalers, as well as both trade and DIY distributors, have expanded their internet presence in recent years, launching transactional websites and starting to move towards ‘omni-channel’ services.
The increasing use of click and collect has also made a significant difference to the way contractors purchase, allowing them to combine the convenience of on-site ordering with convenient collection options.
The report states that the largest distribution channels with regards to sales of electrical products are direct from manufacturers and via electrical wholesalers, while merchants and other trade distributors, such as HVAC specialists, are also significant in this market. In terms of online sales, the most significant distributors of online sales are ‘internet only’ distributors, with around 42% of the market.
In general, the distribution market for electrical products is starting to move towards ‘omni-channel’ distribution, whereby customers can access information, goods and services via multiple platforms and channels within one transaction, with a focus on the overall customer experience.
The full report – The Electrical Products Distribution Market Report, Online Focus, UK 2017-2021 Analysis – is published by AMA Research, and is available online.