News story

IT resellers in UK slow to embrace electronic trading

Learning NewsComptia

A need for pre-sales advice and doubts about the accuracy of product information and pricing are key factors keeping value-added resellers in the United Kingdom information and computer technology (ICT) channel from making greater usage of electronic commerce and trading, according to the findings of a new survey released today by the Computing Technology Industry Association (CompTIA).

At the same time, the survey suggests that there are opportunities for distributor training and customer support to increase resellers' usage of electronic trading.

"Nearly six in ten resellers believe electronic commerce will help them reach their target market, so they recognize the benefits of e-commerce," said David Sommer, vice president, e-Commerce, CompTIA. "But more than three-quarters of resellers said they do not have access to IT development resources. So vendors and distributors who wish to increase electronic business with their resellers need to clearly demonstrate that e-commerce is easier, more reliable, more secure, and provides better order handling. With better understanding and greater confidence that real-time product information and pricing is timely and accurate, resellers are eager to embrace e-commerce."

To assist in this effort, the CompTIA UK e-Channel Forum is working with the entire channel in developing processes to accelerate, simplify and reduce the costs of implementing e-business practices. The forum provides resources to assist members in reaching their e-business goals; and encourages members to collaborate on best practices and strategies where significant costs savings can be generated with minimum investment and low implementation costs for member companies, bringing benefits to the entire ICT supply chain.

The Web-based survey of more than 120 UK resellers was intended to find out how they are using electronic trading in their day-to-day business operations.

While nearly nine of ten distributors offer the option to place orders electronically, fewer than half the respondents said they are currently using direct electronic commerce with their distributors and manufacturers. The main method of electronic ordering utilized by UK resellers is about evenly divided between the Web and the telephone, the CompTIA survey found. Even then, the majority are completing 50 or fewer electronic transactions per month. One-third of resellers who participated in the survey said they do no electronic at all.

Among resellers using the Web to place orders and conduct other business, more than two-thirds (68 percent) said the Web is faster and easier to use.

Of the resellers expressing a preference for the telephone, nearly four in ten (39) percent do so because of a personal relationship or a need for product information. About one-quarter of resellers believe that online product information is out of date or inaccurate; and that pricing obtained over the phone is either more accurate or that a better price may be negotiated.

The majority of respondents are firms averaging annual sales revenue of £2 million or less (79 percent), and with ten or fewer employees (73 percent). More than two-thirds of the resellers who participated in the survey (68 percent) identified their primary target market as small and medium businesses.

For more information on the survey, please visit: http://www.comptia.org/research/files/summaries/ecresellersinuksummary0304.pdf.