Channel conflict is cited as the number one reason B2B companies hesitate to engage in e-commerce. The fear is that selling direct will destroy relationships with distributors and resellers who have served customers loyally for decades. But is this fear greater than the reality?
The data on buyer preferences
Research found that 44% of B2B buyers prefer to buy directly from brand manufacturers, all things being equal. Even more surprising, 21 to 22% said they would pay a premium for that privilege. The explanation is what one researcher called the halo effect: when B2B buyers are spending company money with career consequences for bad decisions, a few pennies matter less than the certainty of buying from the source.
Yet 75% of all commerce sales remain indirect or through channels. The question is not whether to eliminate channels but how to balance direct and indirect strategies as digital commerce grows.
The debate format
Team Support Channels featured Velinda Cox, SVP of e-commerce at Konica Minolta, and Matt Wingham from Cardinal Health. Team Pursue Direct included Sadaf Kazmi, formerly of Staples and Thompson Reuters, and Andy Peebler from Salesforce Commerce Cloud.
Round 1: Should manufacturers sell direct?
Andy Peebler argued that selling direct is an emphatic yes. It does not mean selling every product directly, but having a meaningful connection to end customers. Without that connection, companies put customer experience at risk. Parts, innovative uses, and technology support all benefit from direct engagement. He cited Sonos as an example where a robust direct selling ecosystem drives growth for the channel as well.
Sadaf Kazmi added that some customers do not want to deal with salespeople. Friction exists in traditional channels. Direct selling enables trust through consistency across channels.
Being out there and selling direct actually enables you to engender that trust. Being consistent across channels further reinforces that.
Saddaf Kasmi, Thompson Reuters
Velinda Cox countered that if manufacturers only use their direct organization, they cannot reach all the markets that channel partners enable. Digital e-commerce is creating opportunities to scale through indirect channels that would be impossible to replicate directly.
Matt Wingham emphasized that Cardinal Health has thousands of salespeople with relationships that are challenging to replicate online. He also noted the significant costs of selling direct that manufacturers may underestimate.
On pricing, all four practitioners agreed that brands must maintain control. MAP pricing was cited as critical for preventing a race to the bottom while building customer trust through consistency.
The audience voted 78% that manufacturers should sell direct even when selling through channels.
Round 2: Amazon and third-party marketplaces
Andy Peebler stated that if you are alive and selling products in the United States, being on Amazon is a must. If manufacturers are not there, someone else will be representing their brand, likely inaccurately.
Sadaf Kazmi agreed, noting that the majority of product searches start on Amazon, sometimes even before Google. Companies can be selective about assortment and pricing, but they cannot ignore the platform.
Velinda Cox pushed back on data ownership. Manufacturers do not control the customer or the information on third-party marketplaces. She recommended participating to control brand accuracy but cautioned that Amazon is not the solution for every market.
You do not have control of your customer and you do not have the data. It is okay to do experiments because Amazon is the elephant in the room you cannot ignore. But it is not the end-all answer for your e-commerce strategy.
Velinda Cox, Konica Minolta
Matt Wingham raised concerns about high-preference items, particularly in healthcare. Would a surgery center buy hip replacement materials from Amazon? Service level agreements and the ability to respond when something goes wrong matter in ways that marketplaces cannot replicate.
The audience voted 67% that manufacturers should sell via Amazon.
Round 3: Funding digital enablement
The final round examined whether e-commerce teams should fund digital infrastructure for salespeople and channel partners.
Andy Peebler argued that website investments provide flexibility and can streamline the channel journey, including feeding leads to distributors. The content created for websites supports salespeople as well. These digital investments power the entire ecosystem.
Sadaf Kazmi said she is team website all day. A strong online presence provides value for all customers across all stages of the journey, whether they ultimately transact online or not.
Velinda Cox took a hybrid approach, arguing that digital infrastructure enables the direct sales organization to be successful by generating leads. The investment in digital infrastructure benefits both channels.
Matt Wingham emphasized that large distributors have insights from feet-on-the-street salespeople that are challenging to replicate online. Continued investment in people is essential for customer relationships.
People are the greatest asset we have as a distributor working with our customers. Our sales folks have insights that are challenging to replicate online.
Matt Wingham, Cardinal Health
Sadaf clarified that while enabling traditional channels might be worth doing, it should not come at the expense of e-commerce dollars. The direct channel is critical to future growth.
The audience split 52-48 against e-commerce teams funding digital infrastructure for sales and channel partners.
The verdict: Direct is necessary, channels remain vital
The audience voted for direct selling in two of three rounds. The third question on budget ownership split nearly evenly, revealing that while most agree on the value of digital enablement, who pays remains contentious.
Three conclusions emerged. First, the either-or framing is outdated. Most successful organizations do both direct and channel, and the best companies have found ways to make them work together. Second, Amazon presence is mandatory, but how you are present matters. Third-party selling preserves pricing control while wholesale to Amazon does not. Third, channel conflict fears may exceed reality. The same pattern occurred in B2C, where initial resistance gave way to manufacturers selling direct while maintaining healthy channel relationships.
The moderators noted that the debate would likely produce different results in two years as digital continues to grow. The question is not whether to pursue direct but how fast to move and how much to invest in channel enablement along the way.