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Reality examines the volume of IT products purchased from manufacturer
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This report analyzes online purchasing of IT products by solution provider companies in North America. Reality examines the volume of IT products purchased from manufacturer Internet sites, as well as purchasing from distributor sites. The report also assesses reasons why some solution providers do not buy from manufacturer sites.
Specific objectives include examining:
Identification of product types and volumes purchased by resellers from manufacturers' Internet sites
IT purchases transacted entirely on manufacturer Internet sites
How much resellers spend on purchases from Internet sites
Why resellers buy from manufacturer Internet sites
Why resellers buy from distributor Internet sites
Benefits of purchasing from manufacturer sites
Purchasing issues: manufacturer sites versus distributor sites
Reasons why some resellers do not buy from manufacturer sites
KEY FINDINGS
Seventy percent of value-added reseller companies in North America buy computer hardware and software products for customers from manufacturer Internet sites, reflecting an estimated population of 58,900 reseller companies. A slightly smaller number of reseller companies - 64 percent - buy computer hardware and software from distributor Internet sites, representing an estimated population of 53,900 reseller companies. Half of the value-added reseller companies, reflecting an estimated population of 42,100 companies - purchase hardware and software from online retailer Internet sites.
Reseller companies made 42 percent of all their product purchases for customers online. Manufacturer Internet sites accounted for an average 16 percent of all hardware and software bought for customers in the last year [April 1999 - April 2000], compared to distributor Internet sites (15 percent) and online retailers (11 percent).
Ease of placing an order is the main reason why resellers buy computer hardware and software products from manufacturer Internet sites for resale to end customers, named by a third of resellers that currently buy from these sites.
METHODOLOGY
Phone polls of 403 solution providers, plus qualitative findings. Sample for the survey was drawn from the Reality Universe database of more than 100,000 second-tier channel companies, focusing on North American resellers that are involved with the Internet and electronic commerce. The survey sample of 5,000 companies included those who describe their primary businesses as VARs, integrators, network VARs, vertical VAR, VAD, consultant, system/software developer or Internet/Internet developer.
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