Component Distributors Unfazed by Amazon.com
The electronics companies most likely to be affected by Amazon.com/business — catalog distributors — are not particularly worried about the e-commerce giant’s foray into the b2b components market. Catalog distributors – and electronics distributors in general –have a number of attributes that provide them a competitive advantage in the high-tech industry.
“There are distinct complexities of our market that cannot be easily met by the Amazon mode,” said Tamara Jurgenson, senior vice president for marketing at Newark element14. “There is significant value in the Newark element14 singular focus and multi-channel sales model that is unique and superbly navigates the complexities of the electronic component space. For example, we have processes in place to prevent counterfeit materials and the use of conflict minerals; we offer guaranteed same-day shipping; our value-added services include kitting, re-reeling, custom enclosures and much more. We’veVolumetric Efficiency been able to shape our solutions and evolve our processes through an 80-year partnership with our customers and suppliers.”
Most electronics distributors are authorized (or franchised) by component suppliers which give distributors special privileges. Authorization passes manufacturer warrantees on to end-customers. It helps distributors manage price variations so they can compete with other component sources. Authorized distributors maintain a chain of custody so components can be traced back to the original supplier, which helps eliminate most of the risk associated with procuring counterfeit components. Authorized distributors can also return a certain level of inventory to suppliers if parts aren’t moving or begin to age.