Can you believe that Amazon launched 30 years ago? It was one of the earliest e-commerce ventures on the then-nascent Internet. Born as an online bookstore, the company has more recently transformed the world by making goods and services easily accessible to anyone with a computer or smartphone – and inspiring others to do the same.
What made Amazon different from traditional brick-and-mortar stores wasn’t just that you could buy online. You could also try, track, and return products with ease and, most significantly, you could do it all without talking to a salesperson. This became known as “The Amazon Experience.”
Today, that experience has permeated the B2B world. Most business-to-business (B2B) buyers want to purchase goods and services for their companies online. You may be among them, as I’ve spoken with many business buyers who want the same convenience when purchasing for their companies that they get when purchasing as consumers. In fact, procurement teams for global enterprises tell me they expect their purchase fulfillment time frames to mirror those they enjoy when they shop at Amazon for themselves.
But I sometimes wonder if the consumerization of corporate purchasing brings more risk than reward – and you may too. So, let’s look at this objectively for a few minutes.
Upside of Online Purchasing
Purchasing hardware and software online makes sense in several scenarios. For routine or standard purchases, where specifications are well-understood and products are commoditized, online buying is an efficient route. For example, acquiring additional licenses for software already in use or purchasing standard hardware components like monitors, printers, or storage devices can be seamlessly handled through an e-commerce platform.
Also, if your organization has an experienced IT team that is well-versed in the products you need to purchase, you may find online buying advantageous. Your team will have the expertise required to evaluate product specifications, compare alternatives, consider compatibility and integration requirements with other information technology (IT) and operational technology (OT) components, and make informed decisions without assistance.
Also, if you’re a smaller company or start-up, the cost-efficiency of online purchases is appealing. Online sellers often provide competitive pricing, frequent discounts, and promotions that can significantly reduce procurement costs. Moreover, the ability to quickly compare products and read customer reviews enhances decision-making.
These are some of the more significant benefits of buying business IT products online:
- Convenience: You can explore, learn, select, and purchase all from the comfort of your desk – or anywhere you can get online.
- Speed: Purchasing online often means faster fulfillment; you can get the products you need in 24 hours in some cases, and almost always within a couple of days.
- Transparency: Purchasing from an online seller often comes with greater transparency and consistency in pricing. So, you may not always get the best price, but you’ll see how prices change.
- Selection: Traditional suppliers have limited options when it comes to brands and products, whereas online platforms often have broad selections in multiple technology categories – even if it’s all from a single seller.
- Self-service: You can evaluate products and make selections without having to interact with salespeople; many digital sales platforms have tools that aid in the purchasing process too.
Downside of Online Purchasing
It’s important to note that, despite its benefits, buying online isn't suitable in every situation. For example, some things you may encounter when purchasing technology for your business online through a marketplace include:
- Too many products to choose from: Marketplaces do a good job of presenting products, but the variety of options can be overwhelming. Selecting the product that meets your needs is often difficult, especially when it comes to complex hardware, software, or services.
- Lack of price negotiation or customization capabilities: Many marketplaces will offer volume discounts, but these are for prepackaged SKUs, not custom-tailored solutions. There’s little room for price negotiation, as there is when dealing with a salesperson.
- Limited complex purchasing: Marketplaces are good for simple, routine purchases, but not as good for assembling complex systems that rely on multiple pieces of hardware, software, and services. You may think you’re buying what you need only to find out later the various components aren’t compatible with one another or that you need middleware to integrate them properly.
- The risk of misrepresentation: You may not always be buying what you think you are buying. For example, a marketplace product may be sold as “unused” – which is not a brand-new product. Similarly, if you’re not buying direct from the original equipment manufacturer (OEM) or one of their authorized distributors or resellers, the online seller may not be able to confirm the origin of the product. There’s always a risk that the product you’re buying is counterfeit or has been tampered with, as well. For example, components such as cables may have been swapped with lower-quality versions.
- Missing components: The global reach of many marketplaces means that products can be sold to buyers in regions outside their intended use geography. As such, the product you buy could be missing key accessories or components required in your region to ensure it works as needed. There’s also the risk that the software running on the device(s) you’re buying is no longer supported by the OEM or its licensors. You may not be able to obtain access to the updates either, which means you could be inadvertently creating security risks or a network vulnerability.
- No or limited technical support: Marketplaces don’t typically offer product selection or post-sales technical support to help with your purchase or with product deployment. So, you’re left to figure out how to configure and integrate the device or software application. Even if you’re running a simple business operation, there’s a chance you will need assistance getting your different IT/OT components set up and talking to one another. You will have to be committed to learning about all the features and functionality on your own, as well, and then passing that knowledge on to others in your organization. Something else to consider is that you may not be able to obtain support or replacement under warranty, especially not from the OEM or any of the OEM’s authorized partners.
There are always exceptions, of course. Many technology providers who are now selling online want to ensure you’re considering the right things when you’re buying from them. So, they will offer a direct line to a live person with whom you can consult or ask questions before you build your cart or checkout.
That said…
When in Doubt, Work with Experts
Despite the ease of purchasing online, you will sometimes need help. Even when you’ve already purchased hardware and software through a marketplace, you may need additional support to make the products work as intended. This is where qualified technology partners add value.
These resellers, integrators, and service providers act as extensions of technology manufacturers and software developers, providing access to products, technical resources, and expert support. Yes, they serve as purchasing sources, but they also take the guesswork out of technology evaluation and selection and offer consulting and technical services that aid in implementation and maintenance of your tech systems.
Here’s more detail on why it may be best to work with a technology partner:
- Getting it right the first time: Working with experts means you won’t find yourself in a cycle of “try, return, and buy again” as they’ll help you identify and buy the right products the first time. This also means you can get to an operational state faster.
- Purchasing management: Because your partner(s) will have relationships with multiple vendors and distributors, they can be the central acquisition point for all your technology purchases.
- Price negotiation: Your technology partner(s) will have preferred relationships with suppliers, so they’re able to negotiate prices on your behalf to maximize budgets.
- Implementation, integration, and customization: Your technology partners — particularly integrators — will provide expert resources for deploying, integrating, and tuning products to the specific needs and use cases of a business user.
- Technical support: Your partners will serve as the front-line source of technical support and maintenance; they can respond faster than many technology vendors.
In Other Words
It’s clear that marketplaces and online purchasing will continue to expand in the coming years.
You shouldn’t approach business-related purchases as a binary decision. There will be times when purchasing online makes sense; there will be other times when purchasing through traditional channels is the best move. And, in many cases, you will need the guidance and support of experts to ensure they get what they need.