Amazon’s Rufus is pulling in 10 billion in incremental sales
Brian opened with news from Amazon: CEO Andy Jassy reported that 250 million shoppers have used Rufus, Amazon’s AI shopping assistant, and customers who engage with Rufus are 60% more likely to complete a purchase. The tool is on pace to add 10 billion dollars in incremental sales. Andy noted that Amazon has been doing recommendation engines for years, and this is another example of them raising the bar for what a technology company can do.
Brian connected the point to B2B, where contextual search and application knowledge have traditionally been the domain of salespeople. As digital tools handle more of this work, the role of the human salesperson will continue to evolve.
B2B e-commerce is still lagging
The main topic was whether manufacturers should sell directly via e-commerce. Brian shared data showing that B2B online sales reached 28.1 trillion dollars, 10% of all B2B sales are now transacted digitally, and B2B e-commerce is twice as large as B2C. Yet 35% of B2B firms still do not have an e-commerce enabled website, according to McKinsey. Many of those firms are manufacturers who cite channel conflict as the reason.
Schneider Electric’s partner-first strategy
The guest was Anthony Lockach, Global Director of Distribution E-commerce at Schneider Electric, a 38 billion dollar global manufacturer of energy management and automation products. Anthony explained that more than 50% of Schneider’s revenue flows through distribution partners, and after experimenting with direct web shops, the company concluded that direct selling was not their expertise.
We quickly established it wasn’t our skill or expertise to be doing that. So we pivoted away from a web shop approach and what we’ve now gone to is a marketplace enablement approach.
Anthony Lockach, Schneider Electric
Schneider now operates its own marketplaces in some countries, but all transactions are fulfilled by distribution partners. The company also helps partners launch and execute their own web shops.
Micro sites in 30 seconds
Brian described a demo he witnessed at Schneider’s innovation summit where Anthony and his team launched a custom-branded partner micro site in about 30 seconds. The micro site includes Schneider’s product selection tools, which are typically difficult to integrate into partner sites.
The friction that we were removing is not even about friction with their customers. It’s about friction between them and us in terms of enabling them.
Anthony Lockach, Schneider Electric
Answer engine optimization is here
The conversation turned to generative engine optimization and how it is affecting B2B search. Anthony said the shift has arrived faster than expected. Schneider is running pilots to measure whether they remain an authoritative source in AI search results, working with channel partners to understand the impact.
Andy asked how Schneider handles the front-end conflict when someone searches for a Schneider product. Anthony explained that Schneider does not compete for the buy box. If they win on brand terms, they use Commerce Connect tools to hand off transactional customers to distribution partners. If the customer is still researching, they may stay on the Schneider site to learn about solutions before being redirected.
What this means for manufacturers
The practical takeaway is that selling direct is not the only option. Schneider’s partner enablement model allows them to support digital commerce without disintermediating their distribution network. For manufacturers considering their e-commerce strategy, the question is whether the value is in owning the transaction or in enabling partners to succeed.