They Got Screwed By Amazon. Then They Fought Back.

When co-founders Sam Sinai and Ben Pouladian opened Deco Lighting, an industrial lighting manufacturing company, they, like millions of other commercial and industrial wholesale distributors, explored the Amazon Business platform. But after Amazon promised them a distributor platform and then took their client base and cut them out of the process, it didn’t take long for them to see the light that their sector needed an alternative e-commerce sales platform. In 2014, SupplyHub.com was born.

Although taking on the mighty Amazon is an ambitious move, Sinai’s expertise of the industrial supply sector, bolstered with an extensive network of mid and large-sized distributors, and thousands of fulfillment centers across the country, is changing the climate of online business.

SupplyHub.com is different. Instead of being price driven, Sinai’s focus is to connect buyers with the distributors that meet specific needs. “Instead of cutting out the distributor, like Amazon Business appears to be doing, SupplyHub is attempting to leverage the distributor infrastructure in a way that keeps them relevant to their buyers,” says Forbes contributor Larry Myler.

Like Sinai, many companies hope to be able to compete with Amazon. Sinai offers three tips for creating a more supportive ecommerce b2b platform for distributors.

1. Offer a comparable platform.

Before SupplyHub came on the scene, small distributors, even mid to large distributors, had a hard time finding a level competitive playing field. “Many distributors don’t have a team that can build a robust website,” said Sinai. “If they have someone on their team, they’re not going to spend millions to develop a platform that can compete with Amazon.”

He created a marketplace where distributors can crawl the internet, find out what is being sold at what price, then feed information to distributors on the SupplyHub platform. “Distributors do not pay Supply Hub for the platform,” said Sam. “We allow these mid-large distributors who compete against Amazon to go head to head.”

Distributors get the data, intelligence, sell cheaper than on other platforms that require a percentage and have availability to have multiple distribution locations (coverage). “We give them ERP system, back-end system, everything they need to compete against Amazon,” he said.

2. Establish Meaningful Connections with end users.

SupplyHub.com is here to show that there really is room for everybody in this business. This isn’t about crushing competitors to open a profit path limited to only a few. “This larger network allows us to connect customers with the perfect distributors to fit their individual needs — distributors that are conveniently located and provide fast service with the level of expertise required to produce a satisfying buying experience every single time,” said Sinai. “Instead of cutting out distributors, we’re supporting them.”

Typically, industrial and wholesale sectors spend much of their marketing budget on trade shows or local promotions like BBQs or lunches to promote goods. But it’s hard to measure how much of those efforts result in sales. “With this new model, businesses can now track a return on investment for every single manufacturer once they invest in the SupplyHub campaign,” said Sinai, who has spent the past year and a half talking with over 300 distributors and doing market analysis for ways to streamline the online market for distributors.

3. Data is secure.

Along with a phenomenal access to cheap goods, which gives Amazon an unfair advantage on their own marketing platform, but they also have access to the competition’s pricing and supplier information. That is what Sam’s brother experienced as a distributor using the Amazon business platform. He explained that over time, Amazon started keeping the products in themselves. They contacted all of his manufacturers, and they replaced him and thousands of other distributors who were using the platform. Unlike Amazon, there’s no conflict of interest on the SupplyHub platform. “We’re giving every industry leader the opportunity to come together,” said Sinai.

Based on his industry knowledge and a commitment to provide distributors with a trustworthy, reliable, and profitable platform, Sinai fully intends on becoming the biggest marketplace selling platform out there. “We realize it’s Amazon against the world. It’s the mega-distributor against everyone else. That’s why we know we’ll do well.”