There was a time when Fastenal was closely associated with a brick-and-mortar-centered operating model that valued local networks and vendor managed inventory above all else. But as the internet age added a new layer to the customer relationship, Fastenal began to shift its strategy — closing branches and adding capabilities in support of Fastenal.com. By FY2020, Fastenal’s online sales reached 10% of revenue for the first time in history.
For Fastenal, this rise has continued — and fast. In Q2 of 2025, Fastenal recorded digital sales growth of 14% year-over-year. The company – which now combines reporting for EDI and web transactions – says that these digital sales now exceed 60% of its business.
Fastenal is a fascinating example of how quickly the market can respond to a broad investment in digital capabilities — and how the buying patterns of the past five years have been an accelerator for many distributors’ efforts.
Fastenal’s branch footprint eclipsed 2,700 10 years ago; today, it’s around 1,200 — evidence of a massive strategic shift, of course, but also a testament to what was waiting in the wings: a robust opportunity. According to eMarketer, B2B e-commerce sales in 2024 hit $2.297 trillion, with an average growth rate projected at 7.8% year-over-year from 2024 through 2028.
As this channel grows, other large companies contend that online orders make up a major segment of customer purchases, as well. In 2024, Global Industrial then-CEO Barry Litwin said that more than 60% of the company’s sales were taking place online. Likewise, Motion reported in its 2025 Q2 earnings that e-commerce sales were now representing about 40% of its total — volume that’s up about 10 percentage points since the beginning of 2024, according to Motion parent company GPC’s president, Will Stengel.
Uneven Playing Field
Still, while the digital sales volume of the industry’s largest players suggests a sea change, the reality is a notable gap exists between the e-commerce haves and the have-nots.
We recently issued a reader poll asking Industrial Distribution subscribers to weigh in specifically on their approaches to e-commerce. The results indicate that 19% currently yield e-commerce sales of 35% or more of their companies’ revenue. In contrast, a full 48% say that it’s less than 5%. In fact, nearly four in five respondents say their company’s e-commerce sales make up less than 20% of the business.
So, for a service that appears to now be a cost of entry for distribution, our poll suggests variability. Of our respondents, nearly one-third said they don’t offer an e-commerce platform, a distinction that speaks to the vast number of independent distribution companies that fly beneath the radar of a traditional earnings report.
Our 2025 Survey of Distributor Operations, published in May, pointed to a similar nuance. More than 60% of our audience claimed, at the time, that they were utilizing e-commerce, and 30% said they planned to invest in e-commerce in the following year — either further or for the first time.
In that survey, more than half said e-commerce represented less than 10% of sales, with more than one in 10 saying that number was zero. Of the full response pool, just 47% said they considered an omni-channel experience to be important, though most – 78% – planned to increase online sales.
Addressing Challenges
Despite the maturity of the e-commerce programs of many distributors, it stands to reason that there may be a knowledge gap – or at least an execution one – when it comes to full, industry-wide e-commerce adoption. There are several factors likely in play.
Motion attributes the $8.7-billion-dollar company’s e-commerce growth to “GenAI-powered enhancements to search, product recommendations, and digital integrations.” That larger companies could have the upper hand when it comes to funding these types of tech investments is one thing, but our poll respondents tell us there’s more to the story than just who’s best at leveraging AI. In fact, some say it’s an issue of changing customer behaviors.
Distributors in our poll also point to what they perceive to be other big challenges. The top-ranked barrier was identified as “driving traffic to the e-commerce site.” For many B2B companies, those marketing efforts can be a bit outside of their comfort zone. Using social media, search engines, YouTube and other digital channels, or issuing press releases and advertising online to promote new products, can mean a reshuffling of strategy in order to push users to your site and prevail in the attention economy.
Other onerous issues, from most to least challenging, included:
- Setup/integration of IT
- Maintaining a seamless omni-channel experience
- Relaying your value proposition (including services) in an online sales setting
One respondent noted difficulties in “getting [buyers] to simply log in and use the tool.”
Another issue that seems to be having a more intermittent impact is that of tariffs. While the vast majority told us that current economic conditions – including tariffs – did not impact their e-commerce approach, one in four disagreed. The primary issue here is cost and related pricing variability. One respondent commented that their company has had to become less aggressive with digital sales promotions due to this price volatility and market uncertainty.
E-Commerce Optimism
Although there are challenges, distributors seem keen to move forward due to the inherent value many obtain from these implementations. Nearly 80% of respondents to our recent poll said that embracing e-commerce has enhanced their ability to reach customers — the most-cited benefit of them all.
According to Digital Commerce 360, 64% of all business buyers now come from the Gen Z or Millennial generations, meaning a digital experience is inherent in their habits. Businesses need to meet these buyers where they are to target the next-biggest benefits and opportunities (according to our polled audience): convenience (68%) and diversifying the customer base (50%).
Our survey respondents also shared e-commerce’s impact on enabling them to add new products: 59% said that was the case for their business, however, it doesn’t necessarily come with the need to add staff. Despite this expansion into new lines of business, 84% said they have not added or reduced sales staff in response.
Conclusion
In its fiscal first quarter, Grainger reported its own e-commerce segment – dubbed Endless Assortment – had grown 15.3% daily, significantly outpacing the rest of the business. Statistics like these point to the sheer opportunity in industrial MRO, as well as the heavy competition.
Challenges abound, to be sure, but it’s important for distributors to continue to make progress as they work toward their goals for e-commerce — an effort that, by nature, will require leading-edge technology enhancements.
eMarketer contends that growth in B2B e-commerce in the coming years will be driven by trends in buyer behavior, and AI tools that enhance the digital experience through engagement and a highly streamlined process.
Likewise, our survey respondents – much like those we polled back in May – have high expectations for their own e-commerce sales growth: 73% say they predict the share of their total sales derived from e-commerce to increase in 2026. In order to get there, they’ll need to pursue a heavy emphasis on e-commerce strategies that incorporate the right tools. As for the right time? That was yesterday, but it’s never too late to start.
