MSC Industrial Supply Co. is finding new ways to leverage its strength in e-commerce, even as some online businesses decline.

The industrial and metalworking supplies distributor reported an 8% year-over-year increase in e-commerce sales to $634.0 million for the fiscal third quarter ended June 3, as total net sales increased 10% to $1.05 billion. This led to a slight decline in e-commerce sales in the third quarter from a year earlier as a percentage of total sales, to 60.1% from 62.0%, as MSC’s public sector sales shifted more towards channels other than e-commerce.

Nonetheless, the retailer forged a new path during the quarter to grow e-commerce sales through MSC’s agreement with MachiningCloud, a machining tool commerce platform that leverages MSC as a as an exclusive partner for e-commerce transactions. This new channel is expected to show strong growth, MSC Chairman and CEO Erik Gershwind said today on a third-quarter earnings conference call.

Get closer to engineers influencing purchases

MachiningCloud, which launched in 2020, is an internet-based software platform for over 100,000 users involved in the sale of industrial machining tools from over 50 brands, including Kennametal, 3DLive, Fullteron Tool Co., Ingersoll Cutting Tools and Jergens. It expects to have more than 200 brands by the end of this year, says Matthew Nicholson, director of sales and marketing for MachiningCloud.

“We have strengthened our position for future growth through an exclusive agreement with MachiningCloud,” said Gershwind.

He said the partnership “brings MSC closer to the early stages of the manufacturing process, which extends MSC’s reach to new decision makers, such as engineers and programmers who are key influencers in the sourcing process.”

“We’ve always felt like we have a strong e-commerce program, but we’ve also always felt like you never stand still,” Gershwind added.

He said the two pillars of MSC’s e-commerce growth strategy are continuous improvements to its e-commerce platform, including ongoing enhancements to online product discovery on MSCDirect.com. The other pillar is digital partnerships and programs to extend MSC’s reach to new customers, including through MachiningCloud and MillMax, a program that helps customers set up complex milling operations and reduce costs. Manufacturing.

For the third quarter ended June 3, MSC also announced:

● Gross profit increased by 4.3% to $428.9 million, resulting in a gross margin of 40.7%, down from 42.9% a year earlier.

● Net income decreased by 4.5% to $95.2 million.

● Sales through Internet-connected vending machines increased by 10% and accounted for 15% of total sales.

Register

Sign up for a free subscription to Digital Commerce 360 ​​B2B News, published 4x/week, covering technology and business trends in the growing B2B e-commerce industry. Contact the publisher Paul Demery at [email protected] and follow him on Twitter @pdemery.

follow us on LinkedIn and be the first to know when new Digital Commerce 360 ​​B2B News content is released.

Favorite