January 2000 Editor's Page
The New Gold Rush: E-Commerce Comes of Age

This year’s NACE left many feeling a sense of expectation. Attendance was strong. As of December 4, with one full day left to the show, NACE had attracted 30,000 attendees.

The big harrumph at this year’s NACE show in Atlanta was directed at the lengths that E-commerce service providers are going to develop a brand. The hype on display was awe-inspiring.

I can only imagine the hype as similar to that served up by suppliers to prospectors arriving in San Francisco to participate in the great Gold Rush of 150 years ago. Remember, they were the hardware store owners and grocers that made the most from the Gold Rush.

How appropriate that the most visible E-commerce hopeful, Carstation.com, is headquartered in the Bay Area, home of the original Gold Rush.

While Carstation and the other E-commerce hopefuls made their splash, comments from the repairer side of the equation showed a decided lack of interest.

This lack of interest, or more rightly a Show-Me attitude, is not surprising for an industry that has found computerization a painful, costly experience with numerous failed promises.

But, repairers best pay attention to the potential E-commerce will soon offer their businesses.

E-commerce provider hubris aside, electronic parts and materials ordering will certainly play a role in the high-dollar parts and materials side of collision repair.

However, margins for parts and materials distributors are not nearly as wide as for most retail transactions. Players hoping to carve out a niche in the space between shop and distributor, or shop and manufacturer, will find little interest for E-commerce services that cut into this margin without providing a real savings and value proposition to distribution. Electronic bill payment and presentment is just one area that could offer real time and cost savings value to both shops and their suppliers.