The Online Pricing Challenge

When it comes to launching a commerce-enabled websites, frequently distributors get concerned about:

• Product content
• Pricing
• Integrating with their ERP for “real-time” information.

These are perceived as “daunting” and can frequently create paralysis in the decision-making process, especially if the distributor does not have an experienced person to lead the technical implementation.

The key to overcoming this is understanding:

1. There are alternatives
2. Aligning with someone who can help you implement, and integrate, your platform and who has experience working with distributors.

Distribution is not as simple as saying B2B or B2C (retail). The complexities of selling to contractors and the customer-specific pricing nature of the electrical business just adds complexity. Having an experienced guide helps.

Access Development Solutions has worked with numerous distributors, enabling them to see much. From working with them, they have the ability to identify creative solutions and, with the experiences I’ve had, are willing to identify cost-effective solutions (not every solution requires custom-programming!)

Pricing is one area where a creative thought process is needed. Dmitry Kron, founder and Chief Solution Architect, shares some “real-world” practical thoughts.

Warning … there are solutions to help you break through paralysis!

The Online Pricing Challenge

It’s fascinating to watch distributors tackle digital transformation, but there’s one consistent sticking point that keeps business leaders up at night: customer-specific pricing. I’m not a platform vendor with an agenda – just someone who’s been in the trenches helping distributors navigate this complex terrain.

What we’re seeing across the industry right now is a genuine struggle between the promise of eCommerce and the practical realities of B2B pricing complexity. Every conversation with distribution executives eventually circles back to the same question: “How do we make our intricate pricing work online without breaking everything?”

The Pricing Predicament

Let’s cut to the chase on why this is such a headache:

• Massive catalogsthat dwarf typical retail operations – we’re talking hundreds of thousands of SKUs, sometimes pushing into the millions
• Complex pricing structuresgoverned by business rules that factor in supplier pricing, customer classifications, product categories, volume breaks, territory factors, and logistics considerations
• Real-time price fluctuationsthat can change unpredictably whenever any variable in the pricing equation shifts
• Fundamental platform limitationswhere most eCommerce systems treat price as a simple fixed value (the B2C paradigm) or basic price lists that don’t remotely capture distribution complexity

Our team recently worked with a distributor who described their pricing model as “part science, part art, and part tribal knowledge.” Their pricing manager could explain the logic verbally but translating that into digital rules exposed just how many exceptions and special cases existed. This isn’t unusual – it’s the norm.

The most troubling pattern? Distributors getting stuck in analysis paralysis, spending months (sometimes years) trying to perfectly model their pricing complexity before launching anything. Meanwhile, competitors move forward with imperfect but functional solutions.

The Path Forward (Without Losing Your Mind)

Here’s where we need some practical thinking. Perfect is the enemy of good in B2B eCommerce implementation. Our experience shows there are multiple viable approaches:

• Catalog-Only Strategy: Your website can showcase your full catalog without pricing, directing customers to submit quote requests instead of orders. This is often the fastest path to market, though admittedly not the most sophisticated.
• Scheduled Price Sheet Synchronization: For distributors with relatively straightforward pricing logic, syncing static price sheets to the website on a regular refresh cycle (daily, hourly, etc.) can work surprisingly well. Not real-time, but often “good enough” for many scenarios.
• Real-Time ERP Price Lookups: Implementing price lookups to your ERP triggered by specific browsing events (add to cart, viewing shopping cart, starting checkout) rather than preloading prices for every product. This balances performance with accuracy but creates dependencies on your ERP’s responsiveness.
• Pricing Engine Replication: Syncing the price rules themselves to your online portal and recreating the pricing engine that lives in your ERP. This approach typically involves less data to synchronize and reduces risk if your ERP can’t respond to real-time lookups.

What’s most interesting? We’re seeing hybrid approaches gain traction. One client implemented static pricing for 80% of their catalog that followed standard rules, with real-time lookups only for the 20% with truly complex or volatile pricing. This “80/20 rule” approach delivered most of the benefit with half the implementation complexity and a much faster time to market.

The Hard Truth About Implementation

I don’t love sugarcoating reality, so here it is straight: implementing sophisticated B2B pricing online is hard work, and anyone telling you otherwise is selling something.

Most out-of-the-box eCommerce platforms still fundamentally misunderstand distribution pricing. They’ve bolted on B2B features to systems originally designed for retail, leaving distributors to navigate the gaps. This doesn’t mean they’re unusable – just that implementation will require customization and careful planning.

What’s even more concerning is watching distributors get talked into complete system replacements when their pricing challenges might be solvable with targeted integrations to existing systems.

Our read is clear:

• There is no one-size-fits-all solution for distribution pricing online
• Phased approaches that start with core functionality and add sophistication over time typically succeed more often than “big bang” implementations
• The technical solution matters less than deeply understanding your actual pricing behaviors (not just what you think they are on paper)
• Business rules that seem simple in conversation often reveal surprising complexity when translated to code

One distribution client recently admitted, “We thought our pricing was logical until we tried to digitize it.“

This honest self-assessment led them to actually simplify some pricing practices that had accumulated over decades but no longer served a clear business purpose.

Moving Forward

The companies making real progress in this space share a common trait: they’ve accepted that their first implementation won’t be perfect, but they’ve committed to continuous improvement.

Our team often recommends starting with a simplified version of your pricing model – one that captures the most important business rules while postponing edge cases for later phases. This approach gets you to market faster while still delivering value to customers.

The goal isn’t perfect pricing automation on day one. It’s implementing a system flexible enough to evolve as your business needs change and your comfort with digital commerce grows.

If you’re struggling with how to bring your complex distribution pricing online, our team is happy to review your business logic, provide consultation on the best approach for your specific situation, and build a long-term roadmap that makes sense for your business. We’ve been down this road many times before and can help you avoid the common pitfalls.

Contact us to start the conversation. No pressure, no sales pitch – just practical advice from people who understand both distribution and eCommerce.

Dmitry Kon (Kondratenko) is the founder and Chief Solutions Architect of Access Development Solutions. Access Development Solutions specialize in building custom eCommerce solutions on modern technologies such as BigCommerce, Shopify, Magento, as well as custom-built applications. Access Development Solutions is a partner in eCommerce4Distributors.com.

Take Aways

• Distributors know that their pricing schema is difficult to explain, let alone replicate. The complexity of price matrices combined with SPAs and contracts! And let’s not forget wire pricing and project lot pricing. Converting it to an eCommerce model …
• Dmitry’s approach makes sense. Consider alternatives. Many distributors opt to integrate with their ERP system. The challenge with this frequently is that it delays implementation. His comment of perfection is the enemy of good is accurate. With most of your customers seeking pricing for estimating purposes, consider “close” being good enough initially (if you “need” pricing) and consider his price-sheet synchronization model or the 80/20 (or similar) approach.
• Personally, and especially for small to mid-sized companies, I recommend a phased launched approach. Get a robust catalog online quickly. This is the biggest bang for your buck. Why? Because contractor customer feedback is that they are seeking product information and spec sheets most regularly. Next, they want pricing for estimating purposes and inventory information (which can also be done via synchronization models as well as APIs. Purchasing, which is the most complicated, is the least used.
• And if you serve the industrial market, your existing customers may want punch-outs / eProcurement solutions, which also leverages a catalog. For this I recommend Greenwing Technology.

We’re currently conducting research on end-customer (contractor and industrial buyer) interest and utilization of distributor websites. The research is underway and we already have 250+ responses. The results will be shared in a white paper (click here to reserve a copy) and shared during a webinar in the coming month or so. If you’d like to participate by sending the survey to your customers AND receiving a free analysis of your customers’ input to benchmark against the white paper, email me and I’ll send you a link to participate.

Early results … if you don’t have a commerce-enabled website you are losing opportunities to serve your customers.

Don’t let the fear of online pricing, or the need for pricing perfection, paralyze your decision-making.