Online trading is slow to pick up
Resellers 'lacking confidence'
Resellers are holding back from electronic trading because they lack confidence, and vendors and distributors must try to help them overcome their doubts, according to a report by the Computing Technology Industry Association (CompTIA).
In a survey among more than 120 UK resellers asking how they are using e-trading in day-to-day operations, about 60 per cent of the respondents said they believe electronic trading could benefit their business. However, three-quarters claimed they do not have the necessary development resources.
According to the CompTIA findings, resellers lack faith in e-commerce's ability to deliver accurate information.
David Sommer, vice-president e-commerce at CompTIA, said: "Vendors and distributors that 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 confidence in the fact that real-time product information and pricing is timely and accurate, resellers are eager to embrace e-commerce."
Mukesh Gupta, managing director of distributor e92plus, said the company has considered e-trading but that business models have to be considered.
"It makes sense to work with reseller partners through an automated system," he said.
"This works well when all you are doing is fulfilment, but the model that most resellers use is selling the services, not just products."
Glenn Morrison, managing director of reseller Upgrade Options, said his firm does a lot of e-trading. But he warned: "It does not suit every company and is still relatively complex.
"You either have to hire expensive consultants or employ service suppliers because you have to regularly upgrade."
Morrison added that electronic trading is too expensive for many small companies.