Amazon Supply(amazonsupply.com)
amazonsupply.com
Amazon Supply
http://www.amazonsupply.com
75 comments
Don't underestimate the benefit of physical presence. When I need something now, it is a huge benefit to be able to walk into Fastenal and buy it on the spot. Also, metal is heavy, again using Fastenal as an example, I can order online and pickup instore without paying shipping. Prices are higher than onlinemetals.com, or speedymetals.com but the convenience and no shipping cost often trumps that.
The corollary of that is: Don't overestimate the benefit of physical presence. Sure sometimes you need to buy metal on the spot, but you could say the same thing about books and electronics.
Amazon's targeting the customer that can forcast his needs a few days in advance, and that's a very big slice of the market.
Amazon's targeting the customer that can forcast his needs a few days in advance, and that's a very big slice of the market.
In addition, isn't a big part of Amazon's appeal the excellent customer service (especially effective in mitigating the cost of no physical presence when competing against big box stores)? I'm by no means an expert, but I'd assume that factors like speed and price are higher up on the list of priorities for a firm buying industrial supplies vs. the average customer shopping for books or a new TV. I just don't know how much of what Amazon is known for would translate into growing a market share in raw materials.
Well, you are a single 'end user'. Perhaps Amazon is hoping to go for slightly larger operations that keep a buffer of stock on hand, like small fabrication companies?
Amazon can offer an option for rapid pickup at their warehouse in major cities, and it would be pretty easy to implement it(especially using warehouse robots).
But i guess that it's a small non-strategic business, so they won't bother.
But i guess that it's a small non-strategic business, so they won't bother.
I spent a year developing a website for an industrial supply company. (in it's many iterations). You are right about the low margin and the fragmented market. It can be a tough sell to the mom and pop stores that are trying to compete with Grainger or Northern Tool in the same marketplace.
I think the biggest problem with Amazon is it's hands-off approach to selling products. The reason why there hasn't been any innovation in this sector is because of the interconnected relationships between managers of firms needing products and the salesmen that sell the product. More often than not, the firms have no idea what they actually need, and the sales people have the knowledge to deliver exactly the part they require.
I think that unless Amazon has a very large, and more importantly knowledgeable staff, what you will find here is a lost leader. The only thing that I see amazon bringing to the table is their warehousing.
I think the biggest problem with Amazon is it's hands-off approach to selling products. The reason why there hasn't been any innovation in this sector is because of the interconnected relationships between managers of firms needing products and the salesmen that sell the product. More often than not, the firms have no idea what they actually need, and the sales people have the knowledge to deliver exactly the part they require.
I think that unless Amazon has a very large, and more importantly knowledgeable staff, what you will find here is a lost leader. The only thing that I see amazon bringing to the table is their warehousing.
Ironically, I have also been a buyer of Industrial Supply in the Oil industry, so I know both sides of the table and agree that the relationship between buyer and seller is key.
I guess that's the difference between consumer and business to business in many respects - one knows what they want, the other not so much.
I guess that's the difference between consumer and business to business in many respects - one knows what they want, the other not so much.
I agree with most that the competitor here is McMaster-Carr. The collateral damage could be places like Lowes/Home Depot etc (brick and mortar supply stores) but agree with most here that SmallParts (which this was created out of) didn't have quite the execution that McMaster-Carr does.
The other bit is there is the whole interaction model. In the fabricator world they seem to get an account with one of these companies, order various bits all month long and then get a roll up once a month or so on their purchases. That doesn't seem to be an Amazon compatible model yet.
It will be interesting to see how it works out.
The other bit is there is the whole interaction model. In the fabricator world they seem to get an account with one of these companies, order various bits all month long and then get a roll up once a month or so on their purchases. That doesn't seem to be an Amazon compatible model yet.
It will be interesting to see how it works out.
Amazon let's you pay net-45 and prominently features this: http://www.amazonsupply.com/help/200543490/ref=sp_sn_loc
Agreed, and I'd like to see what this competition will do with respect to McMaster-Carr. For a school design project, I had to order parts from a website and McMaster-Carr had by far the best website of any vendor. From a cursory glance, the Amazon Supply site doesn't have quite the polish or flow of McMaster's.
Hmm. Maybe my memory is playing tricks on me, but my McMaster catalog had way more stepper motors in it than the website does?
It will be interesting to see how it works out.
Indeed. I've for years been impressed with how sophisticated McMaster-Carr's e commerce operations are. That, and I wonder if not having a "Big Book" will hinder Amazon at all. I've lost days of my life reading MSC's catalog...
Indeed. I've for years been impressed with how sophisticated McMaster-Carr's e commerce operations are. That, and I wonder if not having a "Big Book" will hinder Amazon at all. I've lost days of my life reading MSC's catalog...
McMaster has always been one of my favorite companies, and favorite websites. I definitely much prefer bouncing around on the McMaster site.
I guess I'm not quite sure what this is.
Say I want some gallium[1]. A search in Amazon turns it up, under "Industrial & Scientific". But a search in AmazonSupply (which claims to cover "scientific, industrial, & business") does not. So AmazonSupply is not just a rebranding of Amazon's existing I&S section. What is it?
[1] You want it, too. Gallium melts at 30C, so it's a solid on your table, and a liquid in your hand. Fun stuff!
Say I want some gallium[1]. A search in Amazon turns it up, under "Industrial & Scientific". But a search in AmazonSupply (which claims to cover "scientific, industrial, & business") does not. So AmazonSupply is not just a rebranding of Amazon's existing I&S section. What is it?
[1] You want it, too. Gallium melts at 30C, so it's a solid on your table, and a liquid in your hand. Fun stuff!
That seems like an awesome thing. For the younger members here (and me) can you speak to the danger of this substance? The MSDS for it didn't make it seem too overly scary. Not too far beyond sand's danger (possible skin irritant).
Because it's already in my cart...
Because it's already in my cart...
Gallium is poisonous. Do NOT ingest it or handle it without proper safety precautions.
No it's not. Metallic Gallium is not considered poisonous.
I mean, I wouldn't eat it. But incidental handling is not going to hurt you.
There is some dispute on this, but if there is a dispute then that means it can't be very poisonous.
This is accurate: http://www.tumblr.com/tagged/gallium+safety
I mean, I wouldn't eat it. But incidental handling is not going to hurt you.
There is some dispute on this, but if there is a dispute then that means it can't be very poisonous.
This is accurate: http://www.tumblr.com/tagged/gallium+safety
Well, the only honest answer I can give to such a question is, "Ask someone who knows something about that." Alas that person wouldn't be me. User DiabloD3 seems to have given it a good start, though.
This is more likely to put mom & pop stores out of business than threaten the big players like Fastenal, Grainger, McMaster-Carr and MSC Direct.
Mom & pops focus more on retail / small business customers who are price sensitive, so this is going to hurt them.
But the big players mainly rely on their services because industrial and commercial customers care more about minimizing downtime and reliability than on price. The customer service at these companies is great and helps sort through 1 million+ skews, which is completely different from picking 1 out of 20 TVs at Best Buy.
Their customers are companies like Caterpillar who need projects to be on time and same day delivery. Fastenal even puts fasteners directly inside of bins on the assembly lines so that the customer doesn't have to haul a huge chunks of metal.
Amazon would have to seriously boost its service (ie, same day to location) delivery to gain the non-retail customer base as well as expand its sales staff expertise dramatically (which of the 1000 cutting tool bits do I need for X job, what angle does it have to be installed at etc?). What this will do is consolidate the industry with Amazon and the existing big players at the expense of the mom & pops which are over 80% of the market.
It's a $140-160bn a year market. Just goes to show how much opportunity there is in technology to expand outside of consumer-focused businesses.
Mom & pops focus more on retail / small business customers who are price sensitive, so this is going to hurt them.
But the big players mainly rely on their services because industrial and commercial customers care more about minimizing downtime and reliability than on price. The customer service at these companies is great and helps sort through 1 million+ skews, which is completely different from picking 1 out of 20 TVs at Best Buy.
Their customers are companies like Caterpillar who need projects to be on time and same day delivery. Fastenal even puts fasteners directly inside of bins on the assembly lines so that the customer doesn't have to haul a huge chunks of metal.
Amazon would have to seriously boost its service (ie, same day to location) delivery to gain the non-retail customer base as well as expand its sales staff expertise dramatically (which of the 1000 cutting tool bits do I need for X job, what angle does it have to be installed at etc?). What this will do is consolidate the industry with Amazon and the existing big players at the expense of the mom & pops which are over 80% of the market.
It's a $140-160bn a year market. Just goes to show how much opportunity there is in technology to expand outside of consumer-focused businesses.
We're a start up in this space although more focused on chemicals. They have a quite a bit to do on the pricing front.
Petri Dishes, 100x15mm $133 vs. $79 (sterile, which is better) Amazon: http://bit.ly/I550u2 P212121: http://store.p212121.com/petri-dishes/
Allihn Condensers, 200mm Jacket, $85 vs. $43 Amazon: http://bit.ly/I5PC3p P212121: http://store.p212121.com/allihn-condenser/
It will be fun to see how they adjust moving forward.
Petri Dishes, 100x15mm $133 vs. $79 (sterile, which is better) Amazon: http://bit.ly/I550u2 P212121: http://store.p212121.com/petri-dishes/
Allihn Condensers, 200mm Jacket, $85 vs. $43 Amazon: http://bit.ly/I5PC3p P212121: http://store.p212121.com/allihn-condenser/
It will be fun to see how they adjust moving forward.
This is nice. I've occasionally wanted a big bar of copper, but I've never known where to buy it. (The links to McMaster, however, are probably the most helpful thing to come of this product announcement.)
Prices are still twice as high as the items I spot checked from McMaster
To anybody that doesn't know what you're talking about:
http://www.mcmaster.com/
It's a hardware store that sells pretty much every single part you could imagine or need.
http://www.mcmaster.com/
It's a hardware store that sells pretty much every single part you could imagine or need.
I've never found Amazon's site particularly well done, but they could definitely learn a thing or seven from that site.
Amazon is not about getting you to fill your purchase order with the parts list of your latest project. It's about trapping you and selling you things you didn't know you wanted.
What would you want Amazon to learn from them?
What would you want Amazon to learn from them?
Indeed. One nice thing though is that they honor Amazon Prime free two-day shipping.
While McMaster shipping certainly isn't free, it's always overnight, and often less than 100% of cost, so if Amazon is actually 2x price, McMaster still makes sense.
Side note: McMaster has, hands down, the best/most useable site I've ever used. The flow always gets me quickly to exactly what I want, even if I don't know what that is going in.
Side note: McMaster has, hands down, the best/most useable site I've ever used. The flow always gets me quickly to exactly what I want, even if I don't know what that is going in.
I'll second that, McMaster's site is a work of art, especially if need something and you don't know the industry name/term for something.
I know this is the third "me too comment" for this, but you cannot overstate how awesome McMaster Carr is for this sort of thing - they have everything. Massive amounts of information on the site, super fast shipping, reasonable prices. If you build stuff in your spare time and haven't tried McMaster-Carr, you're missing out.
That's a good point. It's been many years since I ordered from McMaster and I didn't remember shipping always being overnight.
I am taking notes on their website. Now that is functional design, stripped down to the core.
This seems pretty bold to me? Anyone else suprised by this? Could put alot of pressure on home improvement retailers and industrial suppliers. Reminds me of Octopart - right? that YC supply search startup?
In any event, this is very cool. Especially for home robotics hobbyist :)
In any event, this is very cool. Especially for home robotics hobbyist :)
First thing I checked for was Nitinol. The awesomest alloy on the planet.
Care to explain more?
One interesting property of nitinol is that it remembers a preconfigured shape when heated to a certain temperature: http://www.youtube.com/watch?v=Y7jjqXh7bB4
I think that's that the alloy 'muscle wire' is made from
Unfortunately, I couldn't find most of the types of pieces I use (2"x 4" square tubing, 2" square tubing, 2 3/4" round tubing--all steel.) For a hobbyist, this could be a god send if they would carry the pieces I need. I have plenty of local places that sell the metal scrap I need, but all are attuned to construction/fabrication business hours, and none have weekend hours for a hobbyist welder that wants to build a bull bar for his Landcruiser.
Some cool stuff, but not much I need with any regularity. Other sources are more than fine. I'll be excited when they stock the types of high-carbon steels that Aldo Bruno[0] sells.
I'm still waiting for someone to disrupt the hard to search supply shops like Jantz: http://www.knifemaking.com/Default.asp
0: http://njsteelbaron.com/
I'm still waiting for someone to disrupt the hard to search supply shops like Jantz: http://www.knifemaking.com/Default.asp
0: http://njsteelbaron.com/
They are offering free shipping on orders over $50... I wonder if they honor Prime also? Might be rather lucrative (for the customer) as steel is deceptively heavy in bulk. Thinking about stuff like the 1" steel rod I used to use as material in shop class for lathe work.
Doesn't seem that deceptive to me...
I was going to post a joke about Amazon customer reviews of their favorite alloys, but the review forms are actually a real thing!
McMaster Carr must be shuddering right now.
I've done a lot of ordering through McMaster Carr, and the ease, delivery time and selection are amazing. It's strange to say this, but they're the one company that I don't see Amazon being able to distinguish themselves from. McMaster is already operating at that level.
Delivery time is why I buy from McMaster. If I get the order in early enough, a dude in a van shows up in a few hours.
This happens to me with Amazon sometimes, when they ship from Nashua, NH to Nashua, NH.
Even Nashua to Cambridge has been same-day for me a couple of times.
Where do you live?
My office is in the Chicago area, near O'Hare airport. Heavy industrial area which explains a lot... =)
I think they also have a big Chicago warehouse. We get the same thing living in Atlanta, and it blew away a bunch of clients that were down here working on a project that we could just drive to McMaster and get something within an hour at will-call.
I like Amazon alright, but I love McMaster. Hope they can keep it going.
I like Amazon alright, but I love McMaster. Hope they can keep it going.
McMaster's HQ is in Chicago area, Elmhurst IL - they also have a major warehouse in Atlanta (and NJ, LA, Cleveland I think, maybe others)
This looks like a rebrand of SmallParts which Amazon bought a while ago. Pricing and searchability were always worse than McMaster and it doesn't seem dramatically improved now.
Yes, it is rebranded SmallParts. From their FAQ (http://www.amazonsupply.com/help/200223050/ref=sp_ft_au):
What happened to SmallParts.com? SmallParts, Inc., joined the Amazon family in 2005. In the past seven years, the dedicated team at SmallParts helped us expand our service and selection until we have grown well beyond our original focus of tubing, parts and fasteners for the medical supply and research industries. We have chosen the name AmazonSupply to help communicate our new, broader selection....
What happened to SmallParts.com? SmallParts, Inc., joined the Amazon family in 2005. In the past seven years, the dedicated team at SmallParts helped us expand our service and selection until we have grown well beyond our original focus of tubing, parts and fasteners for the medical supply and research industries. We have chosen the name AmazonSupply to help communicate our new, broader selection....
McMaster Carr is 111 years old, so they take a longer-term view. Imagine what this may be in 5 years, and 20, if Amazon keeps improving it.
They should take it as a cue to start differentiating themselves as the experts Amazon aren't. Amazon jumping in could be a rising tide, rather than a destructive force, if McMaster Carr plays their cards right.
They already have everything at fairly reasonable prices with overnight shipping(sometimes I get it the same day in the afternoon.) For me the reason I buy from mcmaster is that I need an esoteric part quickly for a project with special requirements. Mass manufacturing from them would not be wise as the prices are going to be higher than buying in bulk from a proper bulk supplier.
The website has a lot of relevant data that you need to make informed buying decisions. sometimes they even have cad file downloads with tolerances listed depending on the part.
The website has a lot of relevant data that you need to make informed buying decisions. sometimes they even have cad file downloads with tolerances listed depending on the part.
McMaster Carr keep all the profitable commercial customers who need guaranteed delivery. and Amazon clears out all the low profit/high cost - need an occasional bit of something for a project - type customers.
Selling books/video online rather than in a store was a breakthrough area when Amazon got into it, ordering parts and materials isn't a new idea - Amazon is a lot less disruptive in this area.
My guess is that the biggest hit will be small specialist model/hobby shops, but unless you are in a few big cities there aren't any of these anyway.
Selling books/video online rather than in a store was a breakthrough area when Amazon got into it, ordering parts and materials isn't a new idea - Amazon is a lot less disruptive in this area.
My guess is that the biggest hit will be small specialist model/hobby shops, but unless you are in a few big cities there aren't any of these anyway.
I wonder both how much business this is going to take from other outlets as well as how much will be new business. People like me who never knew they needed or could easily get random alloys to play with. The big banners for Amazon Prime suggest there may be some of that.
I can see my personal use of amazonsupply just because I already use amazon at home (its the new walmart of the web if you haven't heard).
at work --- not so much. have to create an account to charge to, worry about lead times. not worth it.
at work --- not so much. have to create an account to charge to, worry about lead times. not worth it.
[deleted]
[deleted]
Nice. I've always needed wood chippers. Don't ask what I need them for.
It's exactly the same crappy stuff they have on the regular site.
everything there i could find on amazon.com, and from my experience buying small lab tools from them, it's a 80% return rate.
last one was a set of precision tweezers which only 1/3 of them properly closed in alignment.
The good brands are 2x and 3x the price at a proper store.
everything there i could find on amazon.com, and from my experience buying small lab tools from them, it's a 80% return rate.
last one was a set of precision tweezers which only 1/3 of them properly closed in alignment.
The good brands are 2x and 3x the price at a proper store.
Sounds like you have had the usual experience with 3rd party sellers on Amazon. Never ever buy from them!
These parts are being directly stocked and sold by Amazon.
These parts are being directly stocked and sold by Amazon.
> Sounds like you have had the usual experience with 3rd party sellers on Amazon. Never ever buy from them!
As a counter-anecdote, I can't remember problems with 3rd party sellers. But then I'm only buying stuff like books.
As a counter-anecdote, I can't remember problems with 3rd party sellers. But then I'm only buying stuff like books.
true. i did my lesson and avoid everything that does not show "backed by amazon". That's why i mention "return rate of 80%"
i did bought some of those from 3rd party, and those are in the garbage.
i did bought some of those from 3rd party, and those are in the garbage.
Not ready for prime time. Log-ins don't work right, and even their CAPTCHA on the password-recovery screen is totally broken.
Does Amazon sell nanomorph mimetic poly-alloys too?
Needless to say, Industrial Supply is a low margin, volume business that requires high service levels. Most Industrial Supply companies sell the same products, there really isn't a differentiator. As always in retail, price, selection and availability are crucial in making sales.
This is a good match for Amazon, and obviously they have everything in place already to make this a success e.g warehousing, payments, ordering channels etc. It's worth noting most companies who seek industrial supply want credit - amazon already accepts credit lines though obviously these are not as nice as the cash they get instantly from credit cards and payments.
I guess the only thing Amazon lacks in this regard is a physical presence, something that Grainger, Fastenal, Airgas etc and other Industrial Supply companies have in hundreds/thousands of stores.
In terms of the market opportunity and potential success for Amazon, Industrial Supply is a huge and fragmented sector. The leaders mentioned above have low single digit market share, the same applies world-wide. The business itself is not hugely profitable, but it moves slowly and hence is relatively straight forward in regards to operation, forecasting and numbers.