Providing dealers with e-Commerce solutions

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Grant Morrow, director of e-commerce at Orgill, explains the importance of dealers adapting to change as consumers and pros turn increasingly to e-Commerce

OVER THE past few years, e-commerce has soared, making it harder for some dealers to keep up. Consumers and pro contractors are losing patience with paper processes, with customers now wanting to browse products instantly and from the comfort of their homes. To help meet these challenges and support their dealers, Orgill has continually invested in e-commerce to provide solutions that can help meet the “desperate need for modernization” that is at the forefront of the industry. Grant Morrow, director of e-commerce at Orgill, says, “Whether our dealers are heavily in pro contractor, home builder, or just primary homeowner DIY territory, they must create an online presence featuring product information. In the coming years, it will become essential for everyone to engage in online sales; this will be imperative to their survival.”

Orgill, Inc. is the world’s largest independently owned hardlines distributor with annual sales exceeding $3.7 billion. Orgill provides products and services to over 12,000 stores throughout all fifty US states, all provinces and territories in Canada, and in over 50 additional countries. The businesses served by Orgill include a balanced mix of retailers who operate hardware stores, home centers, pro dealers, and farm stores. Orgill’s subsidiaries include: Orgill Canada, the Canadian segment of Orgill’s distribution network; Central Network Retail Group (CNRG), a multi-format, multi-brand retailer operating 144 hardware stores, home centers, and lumberyards throughout sixteen states across the US; and Tyndale Advisors, a management, consulting, and marketing firm that primarily serves Orgill dealers.

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“We’re very interested in keeping our dealers in business and keeping them competitive, so we have created an ecosystem that keeps them successful and creates more reasons for them to stay with us”

Grant Morrow, Orgill

As younger generations begin to take to the stage when it comes to contracting, homebuilding, and DIY projects, the industry is faced with the demand to get projects started and completed quickly, which means purchasing products that will arrive quickly. This means competition from suppliers like Amazon that can guarantee next-day shipping. Small local dealers, however, can still compete with Amazon’s shipping speed because of their local geographic advantage. So Orgill gives their dealers an edge within the e-commerce space by helping them connect their customers with the point of sale. Customers can access products easily online and purchase them for in-store pickup, thus reducing the need to turn to Amazon for next-day delivery and helping dealers adapt to changing times and capitalize on the geographic advantage they have over big box retailers.

While Orgill believes dealers need to make investments and integrate into the e-commerce space, the company is also aware that not everyone is ready to be fully immersed in a digital world. Unlike some of their competitors, Orgill does not take a one-size-fits-all approach when helping dealers establish their online presence.

If dealers aren’t ready to fully engage with selling products online, Orgill also offers website tiers through which dealers are able to upgrade their services as they become more comfortable with conducting business online. Whether a client simply wants a non-transactional website to showcase their inventory or wants to sell online – whether it be a select number of items or everything they carry – Orgill provides dealers with the flexibility to break into the virtual world at a stage they feel comfortable at and pay a rate that matches the services they need. “The idea behind our new Impact e-commerce platform is to be able to insert somebody wherever they want to be and help them to brand their business easily and better engage with their customers,” Morrow says.

Orgill has seen massive success following investment in their e-commerce program, with dealers experiencing increased purchases and interaction with customers who have been able to purchase products that were previously less accessible. They have also received appreciative feedback from dealers when it comes to how easy it is to upgrade to the next tier of service at the push of a button.

Unlike its competitors, which tend to rely on emails or printed coupons, FanBuilder has found that the most effective way to get customers’ attention is through text-message alerts. Sending out text messages with sales and reward opportunities guarantees customers will take notice of the rewards they signed up for. As well, it costs on average just a penny to send out a text message. So dealers are thus able to reach a large number of customers without those customers needing to open an email or piece of mail – and this reach comes at a fraction of the cost of more traditional marketing techniques. “We've focused on creating a modern digital experience, which we’ve integrated with our e-commerce platform and

When it comes to plans for the future, Orgill is continuously working on integrating more point-of-sale systems, as that plays a key role in the expansion of the company’s e-commerce and loyalty program services. By adding more features and access to their programs, Orgill will continue to support dealers in modernizing their businesses and keeping up with changing times in an increasingly digital age.

One size doesn’t fit all

Published 04 Dec 2023

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“Dealers need to be able to brand their businesses easily, and it’s very easy with the technology providers we’ve picked because we’ve created a modern experience that's going to continue to improve”

Grant Morrow, Orgill

“Amazon owns shipping; it’s Amazon’s market. If you want to provide shipping, you’re going to be fighting against them – and nobody’s having significant success with that. We adamantly believe that our dealers need to make investments in e-commerce, and take advantage of buy-online, pick-up-in-store practices. We have to make it cheaper and easier for them to do that, and adopt the e-commerce experience,” Morrow says.

To further drive sales and customer engagement, Orgill also offers dealers the opportunity to establish a rewards program; such programs increase average transaction size. Much like the one-size-doesn’t-fit-all approach they take with Impact, Orgill’s FanBuilder loyalty and rewards program can also be tailored to fit a dealer’s brand; they aren’t restricted to a standard framework that may limit their ability to connect with customers successfully and boost sales.

Driving participation through reward programs

the point of sale to give people all the necessary experiences combined into one platform, which helps keep our dealers successful,” Morrow says.

Continually expanding with changing times

Sources: Cleveland Research DIY Annual Tracking Survey, Numerator Home Improvement Customer Survey 2022, HD, TSC, and TGT 10-K reports and Earnings Calls

e-commerce

55% of online orders are fulfilled by the store

96% of online orders are fulfilled by the store

HOME DEPOT

TARGET

is now the #3 home improvement retailer

Home improvement e-commerce orders at major retailers are now double normal in-store orders

Amazon

56% of online orders are curbside pickup

TRACTOR SUPPLY

Loyalty transactions are 30% higher in value than those of other customers Retail dealers who have implemented and marketed Orgill's loyalty program have converted 60% of their customers into loyalty customers

Loyalty

Sources = Orgill FanBuilder data