Faced with increasing competition, new buyer behaviors, and tariffs, wholesalers need to rethink their strategies to stay competitive. Businesses that stick with their legacy processes risk losing market share to more agile competitors, including digital-first B2B marketplaces like Amazon Business.
At the 2025 National Association of Wholesalers and Distributors (NAW) Executive Summit, speakers addressed critical issues such as:
Businesses that once relied on personalized field sales, static pricing models, and limited financing options are feeling the pressure to adopt digital tools and look beyond traditional sales and payment methods.
Younger generations have started to take the reins in procurement and sales roles, which is changing the way B2B transactions are handled. At the same time, an aging sales workforce is struggling to adapt to modern sales strategies, forcing companies to rethink how they engage with buyers.
For decades, B2B purchasing relied heavily on personal relationships, in-person sales meetings, and long negotiation cycles. With tech-savvy Millennials and Gen Z now making up 71% of B2B buyers, these traditional methods are becoming either hybridized or obsolete.
Unlike previous generations, younger buyers prefer speed, convenience, and transparency over face-to-face interactions and negotiations. 63% of sales leaders say that digital buying behaviors will have a significant impact on their organization in the next two years.
Self-service purchasing
Young buyers prefer eCommerce platforms, online portals, and mobile apps for placing orders. Rather than calling a sales rep or waiting for a weekly field visit, they want the ability to browse products, check real-time inventory, and place orders at their own convenience.
Fast checkout
In the current market, speed is everything. Buyers expect a frictionless checkout process, instant order confirmation, and multiple payment options such as credit card, ACH, and Buy Now Pay Later (BNPL). Traditional Net 30 terms are becoming less appealing as buyers look for flexible financing solutions that fit their cash flow needs.
While older generations focused on price negotiations, today’s buyers are more concerned with whether a product is in stock and how quickly it will ship.
Younger buyers value reliable shipping, real-time order tracking, and fulfillment transparency over small price discounts. This shift means wholesalers need to optimize their inventory management, logistics, and fulfillment processes to meet these expectations.
The sales side of the industry is also changing as Baby Boomers retire and Gen X and Millennials take over. This generational transition presents both challenges and opportunities for wholesale distribution businesses.
Old-school sales tactics are proving less effective, with seasoned sales reps struggling to adapt to the new digital sales environment where buyers expect data-driven recommendations and instant communication. Wholesalers need to think about equipping their teams with digital tools that enable smarter, more efficient selling.
As companies race to expand their market share and remain competitive, larger distributors and private equity firms are aggressively merging with or acquiring smaller, family-owned businesses, many of which have been passed down for generations.
In some cases, distributors are acquiring 8-10 companies per year, while others are executing even more rapid expansion strategies. One merchant at the NAW Executive Summit reported acquiring 36 companies in just 24 months.
This surge in activity is being driven by several factors:
While the merger and acquisition trend can create opportunities for industry growth, it also comes with its own set of challenges, particularly for smaller wholesalers that are already struggling to compete.
Independent wholesalers often lack the resources, technology, and financial backing of large competitors. As the big players grow through acquisitions, smaller businesses may find it even harder to match their prices, logistics, and digital capabilities.
On the flip side, being acquired comes with significant disruptions. Acquired companies need to integrate into the parent company’s supply chain, IT infrastructure, and operational model, which can create delays, inconsistencies, and supplier renegotiations. Many small businesses being acquired are still running legacy systems, making the integration into larger, tech-driven organizations more complex.
Businesses relying on these distributors can face uncertainty with pricing, inventory availability, and delivery timelines during the acquisition and merger processes.
Acquisition is not the only path forward. Independent wholesalers can strengthen their position by focusing on digital innovation, customer service, and niche market expertise.
With supply chain disruptions, rising operational costs, and the on-and-off tariff situation, wholesalers are being forced to rethink how they manage risk, pricing, and financial strategies. These challenges can make it difficult to maintain strong profit margins.
Tariffs have introduced a new level of complexity for wholesalers who rely on global supply chains. Fluctuations in trade regulations mean that companies must be prepared for sudden cost increases that can directly impact their bottom line.
Without a clear strategy to manage this, businesses may find themselves absorbing additional costs, struggling with inventory shortages, or losing customers to competitors that can offer more stable pricing and reliable fulfillment.
Modern buyers now expect the same level of speed, convenience, and transparency in B2B purchasing that they experience in B2C retail. This means that wholesalers who don’t invest in digital eCommerce platforms risk losing customers to more agile competitors.
Modern eCommerce platforms and marketplaces offer an effortless buying experience with instant pricing, real-time inventory updates, and automated order fulfillment, making it difficult for wholesalers to compete using outdated systems.
Millennials and Gen Z B2B buyers expect the companies they purchase from to have deep insights into their purchasing behavior. By taking a digital-first approach, wholesalers can gain data-driven insights that help them understand individual customer needs, and target specific customers with personalized offers. AI tools can also provide analytics which can be used to identify opportunities for cross-selling and upselling.
By digitizing the ordering and checkout process, wholesalers can offer customers a seamless and efficient experience, allowing buyers to place orders instantly, re-order with a single click, and receive real-time notifications about their order.
A well-designed B2B eCommerce platform eliminates the need for email-based quote requests and manual order processing, replacing them with a self-service system that speeds up transactions and reduces errors. For buyers who frequently place recurring orders, features like saved order templates, subscription-based purchasing, and automated reordering further simplify the process, leading to greater customer satisfaction and loyalty.
According to recent SAP research, the wholesale distribution industry is moving quickly toward AI. 54.8% of midmarket companies are adopting business AI applications, and 53.3% say that adopting generative AI is a high priority.
Artificial intelligence and automation are no longer futuristic concepts reserved for tech giants. They have become essential tools for wholesalers looking to improve efficiency, reduce costs, and improve decision-making.
As B2B eCommerce grows more competitive, wholesalers are looking for intelligent systems that can streamline existing processes. Companies that are late adopters of new technology risk falling behind as competitors implement AI to automate time-consuming tasks, improve the buyer experience, and increase profits.
One of the biggest challenges wholesalers face is ensuring that customers continue to make purchases without defaulting on payments or delaying orders due to financial constraints. With the current economic fluctuations, it’s risky for wholesalers to rely solely on traditional financing solutions.
As a next step, consider exploring how to implement flexible financing solutions, AI tools for sales and inventory management, and eCommerce portals for seamless purchasing. These strategies can give you a solid foundation and competitive edge as the wholesale distribution industry continues to change. Credit Key is the only solution on the market providing flexible payment terms at the point of sale across all B2B sales channels. We can provide your SMB and enterprise customers with the same flexibility and convenience they enjoy in B2C transactions. Learn more here.