With companies like Amazon and eBay e-commerce is continually growing and it is only a matter of time before the chemical industry hops on board. In fact, several web platforms have emerged for selling chemicals online. The lubricants industry is trying to keep up.
The online channel has begun to take up the volume of the traditional channels of retail such as auto part stores and mass merchandisers. In this area there are three different types of online stores to consider, marketplaces, online auto parts stores, and traditional retailers. Lubricants only have a small fraction of the total sales on marketplaces. These are places like Amazon that have a variety of products and only an online presence. Online auto parts stores offer a range of lubricants but are geared toward consumers with more knowledge of the oil they are choosing. Traditional retailers are those that have added an online presence to their already existing business. They are usually very well known.
Numerous distributors of lubricants and chemicals have a relationship with Amazon.com and there are companies that have begun pursuing e-commerce via other platforms. This is something that was attempted back in the 2000’s by a variety of companies but didn’t have much success. This time, many believe that the chemical industry is ready to make e-commerce work, and many are looking into the changes needed to implement online sales.
However, selling online has presented its own set of challenges. As an NACD distributor, ChemCeed is tasked with being a responsible distributor. This means that we monitor and regulate who we sell chemicals to, how they are using, storing, transporting, handling, and disposing. When distributors sell online the regulation of who is buying these products becomes harder to monitor. In order to buy certain chemicals on eBay customers are required to have a Federal tax identification number. However, there isn’t much else in place to regulate what kind of business they are running or what they are planning to do with the chemicals after purchase.
Who can buy the chemicals isn’t the only issue being faced. A second is what is being sold. There are certain products that are restricted on Amazon, such as hazardous materials. However, not everything is spelled out in black and white. This causes loopholes and certain products to slip through the cracks.
If your company is still weighing the pros and cons, it is also important to remember that consumers not only use the internet to buy, they also use it for research. Many are researching price and availability among other things making an online presence of any sort an important asset.
With technology and business ever evolving it is important that companies stay up to date with the most recent advances in their industry, whether it be technological advances or consumer buying preferences. Please contact your ChemCeed Sales Representative to learn more about what ChemCeed is doing in the changing markets.