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Stat of the Week: Online purchases

Here are the top three reasons builders buy from online-only retailers.

BY Principia Consulting

Online-only retailers, such as BuildDirect and Houzz, are growing in size and influence as channels for building materials. Many builders and contractors already place orders with online-only retailers, but their reasons for doing so are not all about price. The top reasons builders and contractors cited for online ordering include ordering convenience and the availability of jobsite delivery. Lower cost ranks just ahead of the ability to easily check prices and inventory levels as other factors in the decision to shop online.

Most dealers already offer many of these same factors that attract contractors to online-only retailers, such as rush delivery, lower costs, and jobsite delivery. However, not enough dealers can match the convenience of online ordering, which created the opportunity for online-only retailers to join the LBM marketplace. As dealers develop their own e-commerce platforms, the perceived convenience of online retailers will disappear and their influence on the LBM distribution market will diminish.

Principia Consulting is a leading research and consulting firm focused exclusively on the building materials and construction industry. For 25 years, we have helped our clients grow faster and more profitably by providing high quality information, analytics, and insights.

For more information about pro dealer and retail distribution, contact Principia today.

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