Why Distributors Are Switching to AI-First eCommerce Platforms

I’ve worked closely with enough distributors to know that most of them aren’t chasing tech trends. They care about one thing: what moves product and what improves margins. So when I started seeing more and more mid-market distributors switching from traditional eCommerce systems to AI-first platforms, I knew something had changed—not in hype cycles, but in operational outcomes.

This isn’t about implementing AI because it’s fashionable. It’s about survival. In a post-COVID, Amazon-dominated world, distributors are under immense pressure: hundreds of SKUs, tight margins, aging digital infrastructure, and customers expecting frictionless, personalized buying experiences. AI, done right, is no longer a luxury—it’s the difference between being agile and being obsolete.

Legacy Platforms Are Failing to Keep Up

Most legacy eCommerce platforms—built 10 or even 5 years ago—weren’t designed to handle the pace of B2B distribution today. They still rely heavily on manual catalog enrichment, rigid pricing structures, static inventory logic, and outdated product discovery flows.

Let’s be honest: a distributor with 50,000+ SKUs can’t expect sales reps or merchandisers to manually manage every product detail, keep pricing competitive, and surface relevant accessories or alternatives in real-time. These platforms become bloated with spreadsheets, plugins, and custom patches—none of which scale.

Worse, many of these systems are “headless” or “composable” which was supposed to be the future. But too many distributors have realized that these architectures often just mean more vendors, more developers, and more delays. You get flexibility, sure—but at the cost of speed and simplicity.

AI-First Platforms Aren’t Just Smarter—They’re Leaner

Here’s the shift I’m seeing: distributors are no longer asking how customizable a platform is. They’re asking: how much of my manual work can be eliminated? That’s where AI-first platforms come in.

And when I say AI-first, I don’t mean platforms that just added an OpenAI integration last month. I mean platforms where AI is built into the product itself—handling core business functions like catalog management, pricing, customer segmentation, inventory routing, and content generation.

This isn’t a surface-level chatbot. This is deep, embedded intelligence that transforms day-to-day operations.

Let me give you a real example: a regional electrical distributor recently moved from a popular open-source stack to BetterCommerce. What sealed the deal wasn’t the UI. It was the AI-powered PIM engine that could automatically tag, group, and enrich thousands of SKUs using language models trained on industry-specific taxonomies. This replaced a 3-person merchandising function almost overnight—and led to a 20% increase in search accuracy across the site.

The Economics of AI Just Make Sense

Distributors have always been razor-focused on margins. So, let’s look at some numbers.

According to a recent McKinsey report, B2B companies using AI-based pricing tools have seen margin increases of 5–7%—purely by optimizing price bands and automating customer-specific quote logic. That’s a margin game-changer in an industry where net margins often sit between 2 and 6%.

Another report from Gartner projected that by 2026, 75% of B2B procurement interactions will happen in digital channels, most of which will rely on AI to deliver personalized product recommendations and automate replenishment workflows.

When you line that up against the cost of hiring more catalog managers, pricing analysts, and customer service reps, the ROI of AI-first eCommerce becomes obvious. It’s not just about “saving” money—it’s about unlocking growth without increasing headcount.

And the beauty of these platforms is that they don’t require massive enterprise deployments. AI-first doesn’t mean “custom-built.” Platforms like BetterCommerce offer modular AI capabilities as part of the core stack, so a distributor can roll out enrichment, pricing, or search intelligence gradually, without overhauling the whole system.

AI Solves Real Problems for Distributors

Let’s break down where AI delivers impact in distribution:

Product Information Management (PIM)
AI auto-enriches product data, fills in missing specs, and groups SKUs intelligently. This dramatically improves discoverability and reduces bounce rate.
 

Pricing Optimization
No more static price lists. AI dynamically adjusts pricing based on volume, customer tier, stock levels, and historical behavior.
 

Order Routing & Fulfillment
AI models optimize fulfillment logic—routing orders based on inventory, geography, and cost—without needing warehouse managers to intervene manually.
 

Quote Generation
AI-powered CPQ (Configure-Price-Quote) tools help reps respond faster and more accurately, with pricing suggestions and accessory bundling built in.
Search & Recommendations

Context-aware search ensures customers find what they need—even when their terminology is vague. Cross-sells and upsells are automated based on customer behavior.

These are not “nice-to-haves.” For distributors juggling long-tail SKUs and high order volumes, they are mission-critical.

Caution: Not All AI Claims Are Equal

But here’s where I stay skeptical: not every platform that claims to be AI-first truly is. I’ve seen legacy vendors bolt on AI features just to stay competitive, usually as separate modules or expensive enterprise add-ons.

That’s the trap. Distributors don’t need more tools. They need fewer tools that do more work. AI should be a core competency, not a premium integration.

Look closely at how AI is deployed. Is it embedded into your pricing workflows? Does it surface recommendations natively in your PIM? Can you train the models on your data? If the answer is no, then you’re not looking at an AI-first platform—you’re looking at an AI-themed one.

What to Look for in an AI-First Commerce Platform

If you’re evaluating platforms now, here’s what I’d ask:

• Does the PIM support AI-based attribute tagging and auto-enrichment?
• Is the CPQ engine AI-augmented to suggest optimal quote structures?
• Are product recommendations powered by customer behavior and context?
• Can the platform segment customers and automate workflows without a CRM?
• Is order routing AI-optimized across warehouses?
• Most importantly, what measurable business KPIs does it move?
   

BetterCommerce, for instance, bakes AI into its core product logic. You don’t need to install additional tools to benefit. It’s just… there—working in the background, optimizing your operations.

Final Thoughts: It’s Not Optional Anymore

The shift to AI-first commerce in distribution isn’t hype—it’s happening. But it’s happening quietly, and it’s happening with teams who care less about buzzwords and more about performance.

If you’re a distributor stuck with a brittle, app-heavy stack—or worse, a team maintaining 10 integrations just to keep pricing consistent—it’s time to ask yourself: what are you gaining from your current platform?

AI-first platforms aren’t about technology. They’re about outcomes. Higher margins. Fewer manual tasks. Faster deals. Smarter operations.
Distributors don’t need another feature. They need leverage. And AI—done right-is—is exactly that.