IT resellers lose ground to mail order players

SMBs and corporate clients are buying more large value items directly from web sites as cash is freed up, GfK claims

In the post: Mail order companies are taking market share from traditional IT resellers

Mail order companies have started to eat IT resellers’ lunch as SMB and corporate buyers turn to online ad hoc purchases for their business needs, analyst GfK has revealed.

According to the market watcher’s figures, from March this year, IT mail order has taken value share from IT resellers in two of the last six months, as ad hoc purchases of desk computing (including servers), software, networking and monitors all increase.

Over the past 18 months, IT resellers have claimed the top spot for value share almost every month, with IT mail order players winning on volume sales, GfK said.

Carl West, business group director IT, office, stationery, photo and musical instruments at GfK, said: “This is an indicator that there is more money in the corporate and SMB market and they are wanting to buy new kit.

“We are getting feedback that the public sector is starting to tighten up and there is a shift between corporate and public sector buying patterns with IT as public sector players feel the pressure. Also this week Philip Green urged government buyers to bypass the channel and buy direct in his spending review.

“IT resellers are being pinched by the mail order guys,” he said. “Especially as more mail order players start to get into the value space which has traditionally been dominated by IT resellers, which are very service orientated.”

West said it was not all bad for IT resellers though, because demand for services and consultancy was set to increase.