Digital scale & consolidation

Digital share scales with size — and a $10B merger just raised the bar

Ahead of Q3 earnings, fresh survey data quantifies how far B2B ecommerce has scaled inside distribution — and how much that depends on size. From there, we look at the pharma tariff, now in effect with a timeline for generics, and at packaging and JanSan, where two of the category's biggest distributors are now a single $10 billion platform. If your buyers range from the smallest account to the largest, this one's for you.

Explore the weekly brief

01

The Big Picture

Ecommerce

Ecommerce

How much of a distributor's orders go digital scales with its size

New survey data from Distribution Strategy Group, drawn from more than 100 wholesale brands, puts hard numbers on a pattern distributors feel but rarely measure: ecommerce's share of digitally captured orders rises steadily with company size. For wholesalers under $5 million in revenue, buyers place 34% of digital orders through ecommerce; that climbs to 40.7% in the $5–15 million tier and reaches 63.5% at the largest firms, where the sales rep writes just over a third. The channel is also winning new business on its own — about a quarter of buyers at the smallest wholesalers now order exclusively through the website, and 44% of new online buyers there place their first order within 30 days.

63.5%

of digitally captured orders go through ecommerce at the largest wholesalers, versus 34% at the smallest

Self-service isn't just absorbing existing orders; it's opening and reactivating accounts — but realizing that depends on the scale to invest in the platform behind it.

02

Policy Watch

Government moves that reshape B2B commerce

Trade

The pharma tariff is live — and the generics clock just started

The 100% Section 232 tariff on patented drugs took effect September 29 for importers without exemptions. Three developments since sharpen it for the drug channel. First, the administration set a timeline for generics: tariff-free through a transition period, then 100% in 2028 and 200% in 2029 — which matters because leaning on lower-cost generics is exactly how distributors would offset higher branded-drug costs, and that lever now has an expiry date. Second, Commerce detailed broad 0% exemptions — antibody-drug conjugates, orphan drugs, cell and gene therapies, and 19 allied jurisdictions — concentrating the real 100% exposure on smaller importers without pricing deals, per KPMG. Third, trade coverage notes the heaviest burden falls on small and midsize drugmakers, which rely on outsourced manufacturing and have little ability to reshore quickly — raising the odds of consolidation rather than new domestic capacity.

200%

planned generic-drug tariff for 2029, following 100% in 2028 — the low-cost hedge is on a clock

03

Sector Spotlight

Packaging & JanSan Distribution

The Deal

A $10 billion platform rewrites the JanSan map

Two of the largest distributors of janitorial-sanitation supplies, foodservice products, and industrial packaging — Imperial Dade and BradyPLUS — completed their merger in March and have since unified under a single brand, Imperial Brady. The combination pairs the second- and third-ranked players in the category (behind long-time leader Uline) into a North American platform with more than $10 billion in annual revenue and over 13,000 employees serving restaurants, healthcare facilities, schools, and building-maintenance providers.

$10B

combined annual revenue of the new Imperial Brady platform

The Arithmetic

Why scale is the whole game in JanSan

The spread between scaled and sub-scaled purchasing economics has driven consolidation in JanSan and foodservice distribution for a decade, and this deal widens it. Backed by private-equity capital and built through a long string of bolt-on acquisitions, Imperial Brady now offers national scale and local service depth at the same time — a combination that narrows the traditional advantage of smaller regional operators, who have historically competed on proximity and relationships.

13,000+

employees across the combined North American footprint

The Digital Test

The integration challenge is a data-and-platform problem

Imperial Brady says it will run a localized service model supported by broader scale, expanded product range, and enhanced digital capabilities. That's the real test of the merger's value: unifying more than 305 combined distribution points under one brand and one platform while preserving the customer relationships that drove both companies' growth. It's the same challenge every consolidating distributor faces — turning acquired branches into a single digital ordering experience with consistent pricing, inventory, and account data, rather than a patchwork of systems behind one logo.

305+

distribution points to unify under one brand and one platform

B2B Builders Club

Keep the next operating signal within reach.

Return to the B2B Builders Club resource library for more conversations, working sessions, and practical ideas for what's next in commerce.

Explore the resource library