Amazon ruled a distributor
The Consumer Products Safety Commission ordered Amazon to issue full refunds for 400,000 hazardous products sold through its marketplace. Products include carbon monoxide detectors and hair dryers without electrocution protection. This follows a ruling that classified Amazon as a distributor rather than just a platform connecting buyers and sellers. The hosts noted this could open Amazon to lawsuit liability beyond federal enforcement, representing a significant precedent for marketplace accountability.
The default metric
Percentage of total revenue from ecommerce became the default success metric because it is easy to calculate and understand. If total sales are $100 million and ecommerce sales are $3 million, the number is 3%. Early digital leaders justified their existence by pointing to these numbers. Senior executives can understand it. But ease of calculation does not make it the right metric for understanding digital success.
We see so much usage of ecommerce for everything but ordering. An account may order more from us due to their usage of ecommerce because of better product information and accurate inventory status.
Deirdre Head, Boston Scientific
The misleading majority
A LinkedIn poll asked whether percentage of B2B company revenue from ecommerce is a good measure of success. Results showed 58% said no, it can be misleading, while 42% said yes, it reveals digital maturity and success. The hosts noted this represents reasonable disagreement, with the answer depending on context. The comments generated significant discussion about alternative approaches.
Cross-channel complexity
Deirdre Head from Boston Scientific noted that accounts may order more overall due to ecommerce usage even when they do not order through ecommerce directly. Better product information, accurate inventory status, and pricing drive behavior that results in offline orders. Matt Wingham from Cardinal Health previously shared similar challenges: customers research on the website but order through EDI. Connecting these touchpoints requires sophisticated analytics.
Definition challenges
Peter DiDomenica from American Orthodontics raised the definition challenge. He could argue 100% of sales come from ecommerce since inside sales enter orders through the site where the product configurator and customer prescriptions live. He separates into three buckets: punch-out and EDI, orders placed directly by customers, and internal user orders. 3M faced similar definitional issues, changing whether EDI counted as ecommerce from year to year.
At the end of the day I think this is a metric you have to put in the context of your customer and understand the role that ecommerce and digital plays in the journey.
Brian Beck, Master B2B
Demand capture versus generation
Dan Stepchew from Zest Dental Solutions offered another perspective. He asked what happens when total direct sales revenue is flat. Does it mean ecommerce only converted existing customers without incremental impact, or that ecommerce did its job while sales underperformed? He frames ecommerce as best suited for demand capture rather than demand generation, suggesting this is the most profitable approach from an operating expense standpoint.
Alternative metrics
Jeff Mikos from McFadden suggested leaning into adoption and engagement alongside platform impact on operations: percentage of customers registered, whether they are active, what they do when logged in. Ricardo Caruso suggested percentage of transaction volume rather than revenue, since B2B environments can make revenue deceptive. The hosts noted that customer lifetime value, share of wallet, and sales team effectiveness also deserve attention.
Context determines value
The hosts concluded the metric should be part of the puzzle but not the sole measure. For leading distributors like Grainger and MSC with high digital penetration, the correlation with maturity is clear. For manufacturers with complex products requiring consultation, low online transaction rates may not indicate failure. Bank of America still reports digital penetration publicly, suggesting investors value the information. The danger is focusing on it blindly and forcing customers into ecommerce when that does not serve their needs.