Why Mid-Market Distributors Aren’t Ready for GenAI

Introduction

Generative AI (GenAI) is rapidly redefining the future of B2B eCommerce solutions and how businesses sell. Modern B2B buyers, especially younger, digital-native procurement teams, have sky-high expectations shaped by consumer tech. They demand seamless online shopping, fast answers, and personalization. 

90% of B2B buyers already use generative AI tools like chatbots during their purchasing research. They also expect personalized digital experiences, with 71% getting frustrated if interactions aren’t tailored to their needs. This puts enormous pressure on mid-market B2B distributors to deliver Amazon-level service. 

Yet, most distributors are not prepared to ride the GenAI wave. A recent survey found over half of mid-market firms feel only “somewhat prepared” for AI, and 10% not prepared at all, underscoring a serious readiness gap. What’s holding them back? See these five key gaps blocking GenAI readiness (and what to do about them).

What GenAI Can Bring to B2B eCommerce Solutions

GenAI isn’t just hype; it offers real enhancements to B2B online selling. Modern B2B eCommerce solutions that embrace GenAI can deliver:

Conversational search and ordering

 AI-powered chatbots and voice assistants let buyers find products or place orders by simply asking naturally. Instead of clicking through menus, a customer could say, “I need 50 units of part X next week,” and the system handles it. 

These conversational AI assistants can dramatically boost conversion rates – one company saw a 50% jump in conversions by deploying an AI sales chatbot.

Personalized buying experiences 

GenAI analyzes customer data to tailor the shopping journey. From dynamically generated product descriptions to customized promotions, AI makes each buyer feel understood. 

This level of personalization isn’t optional; business buyers now demand it, and the right AI can serve up bespoke recommendations at scale. 

Personalized product suggestions driven by AI often lead to higher sales by showing customers the most relevant items.

Procurement automation

For repeat purchasing and procurement tasks, GenAI can save time. AI assistants can learn a customer’s procurement schedule and help automate reorders or renewal reminders. They can also handle routine RFQs or approvals by auto-filling forms and flagging anomalies. 

Essentially, GenAI acts like a digital procurement clerk, automating processes that used to require lots of emails and calls. This not only speeds up the supply chain but also reduces human error in ordering.

AI-driven product recommendations

Modern eCommerce platforms already use AI for “customers also bought” suggestions; GenAI takes this further by considering a buyer’s context in real time. 

If a customer is browsing industrial pumps, a GenAI engine might recommend compatible hoses or maintenance services proactively. These smarter recommendations increase average order value and make the shopping experience more engaging for B2B distributors’ clients. 

The best part is that composable, AI-friendly eCommerce solutions make it easy to plug in these GenAI features via APIs, enhancing the platform’s capabilities without a full overhaul.

To bridge the digital gap, many companies are now exploring B2B eCommerce solutions that can integrate AI-driven personalisation and automation into their existing workflows.

Five Reasons Mid-Market Distributors Are Falling Behind

Why are so many mid-market distributors struggling with GenAI readiness? It often comes down to issues with their current B2B eCommerce solutions or internal processes. Here are five big reasons distributors are falling behind:

1. Poorly structured product data

GenAI (and any AI) is only as smart as the data it can access. Many distributors have messy, unstructured product catalogs – incomplete descriptions, inconsistent attributes, siloed spreadsheets, and so on. 

This chaos confuses both shoppers and AI tools. Without clean, well-organized data, an AI can’t accurately answer a customer asking, “Which of these pump models is food-grade?” or generate reliable recommendations. 

It’s no surprise that one in three mid-market companies cite data quality issues as a top AI implementation challenge. In short, bad data in means bad (or no) intelligence out.

2. Outdated ERP or non-integrated platforms

 Many distributors still run on legacy ERP systems and bolt-on web stores that don’t talk to each other in real time. An old ERP might manage inventory and orders, while a separate eCommerce site manages online sales – with minimal integration between them. 

This fragmentation is a GenAI killer. Why? An AI agent needs a unified view of inventory levels, customer-specific pricing, order history, etc., to be truly helpful. 

Legacy systems often trap data in silos and weren’t designed for today’s fast, API-driven world, making it difficult or impossible to leverage AI insights on top of them. 

If your eCommerce platform and back-end ERP don’t seamlessly share data, an AI can’t, for example, instantly quote an accurate price or delivery date to a customer in chat. Outdated tech essentially handcuffs your AI ambitions.

3. No customer-facing knowledge base

 GenAI thrives on having information to work with – and so do your customers. If a distributor hasn’t built up a robust online knowledge base (product guides, FAQs, how-tos, troubleshooting info, etc.), there’s nothing for an AI chatbot or search tool to draw upon when answering detailed buyer questions. 

Today’s B2B distributors need to think beyond just a product catalog; they also need rich content that educates. Why? Because digital-first buyers prefer self-service. 

Research shows buyers often use conversational AI to get answers, and vendors must have content ready to address those questions in AI-friendly formats. 

If your content is sparse or locked away (say, only in salespeople’s heads or PDF manuals), GenAI can’t help your buyers, and they’ll seek answers elsewhere.

4. Lack of internal GenAI literacy

GenAI isn’t plug-and-play magic – your team needs to understand its potential and limitations. 

Mid-market firms often don’t have data scientists or AI specialists on staff, and leadership might still be wrapping their heads around what “GenAI for B2B” really means. 

This skills gap leads to hesitation and missteps. In fact, 39% of companies surveyed pointed to a lack of in-house AI expertise as a barrier to being prepared for GenAI. 

If your eCommerce and IT teams aren’t up to speed on AI, you might miss easy wins (like using an AI chatbot for customer service) or fail to steer your vendors toward AI-enabled solutions. 

Employees may also fear AI or resist change, especially if they worry it could replace jobs. Without some basic GenAI literacy and training internally, it’s hard to even start a GenAI initiative.

5. No roadmap for digital transformation

Finally, many distributors lack a clear plan for evolving their digital commerce – let alone adding AI. Perhaps they launched an online store out of necessity (hello, pandemic), but treat it as “set and forget.” 

GenAI readiness, however, requires an ongoing strategy. You need a roadmap that identifies where AI can add value in your B2B eCommerce solution (e.g., in customer service, in sales process, in supply chain) and then a phased approach to get there. 

The absence of such a strategy is common – about a third of mid-market firms have no clear AI strategy at all. Without leadership driving a digital transformation plan, AI projects tend to stall out. It’s the classic case of aiming nowhere and hitting it. 

Mid-market distributors falling behind typically haven’t mapped out how GenAI fits into their 2025 vision, so it doesn’t happen by itself.

Future-Proof with B2B eCommerce Solutions + GenAI

The good news is that distributors can catch up. Building GenAI solutions is all about shoring up your foundations and taking incremental steps. Here’s how to future-proof your operations by combining modern B2B eCommerce solutions with GenAI:

Adopt composable, API-friendly platforms

• If your current eCommerce or ERP system is a dinosaur, prioritize upgrading to a modern, cloud-based solution that plays nicely with others.
• Composable commerce platforms (with modular components and open APIs) allow you to plug in AI services easily. Similarly, ensure your ERP can integrate in real time.
• This tech agility is key – it’s hard to teach a rigid old system new AI tricks. Moving to an API-first eCommerce solution sets the stage for any GenAI tool you want to add, from chatbots to analytics.

Structure your product catalog and content

• Get your data house in order. Standardize your product names, attributes, and categories so both humans and AI can navigate them. Enrich your catalog with detailed descriptions, specs, and images. At the same time, build out a customer-facing knowledge base or help center.
• Think of all the common questions (product usage, troubleshooting, compatibility) and create content answering them. Organized, well-tagged content is fuel for GenAI. The more structured and accessible your data and documentation, the smarter any AI assistant will perform.

Start with small GenAI pilots 

• You don’t need to implement AI everywhere on day one. Identify one or two high-impact, manageable use cases and pilot them. For example, you might launch an AI chat assistant for quick reordering – a chatbot that knows a customer’s past orders and helps them reorder in seconds via chat.
• Or pilot an AI tool that generates custom product recommendations on your site’s homepage. Keep the scope narrow, measure the results, and learn from them. Early wins will build internal confidence and skills. Plus, pilots let you iron out kinks (like training the AI on your terminology) before scaling up.

Choose eCommerce solutions that scale with GenAI

• As you evaluate technology vendors, ask about their AI roadmap. The ideal B2B eCommerce solution isn’t just “GenAI-ready” in buzzwords – it actively enables AI. That means it has features or integrations for things like AI-driven search, personalization, or content creation.
• It should also be scalable (cloud infrastructure to handle AI’s computing needs) and secure (AI brings new data considerations). Partner with platforms and providers who are as excited about GenAI as you are, so you won’t outgrow them in a year.

The right B2B eCommerce solution isn’t just GenAI-ready, it enables it.

Many mid-market distributors are now turning to B2B eCommerce consulting firms to assess their AI readiness and modernize outdated digital systems.

With these steps above, mid-market distributors can begin closing the AI-readiness gap. Future-proofing is an ongoing journey, but each improvement – whether cleaning up data or experimenting with an AI chatbot- moves you closer to a truly intelligent commerce operation. Your buyers will notice the difference in improved service and efficiency.

Conclusion

GenAI is coming at B2B fast and shows no signs of slowing down. Mid-market B2B distributors that act now can still leapfrog into an AI-enhanced future and delight the next generation of digital buyers. The key is to honestly assess your eCommerce readiness today and start building those capabilities that you lack – be it better data, modern platforms, or AI skills. 

The gap is significant but not insurmountable. In 2025 and beyond, the distributors who combine strong B2B eCommerce solutions with GenAI will set themselves apart with customer experiences that feel a cut above the rest. Don’t wait for competitors to figure it out first. 

Book your free GenAI Readiness Audit to see how your B2B eCommerce solution stacks up, and get a roadmap for stepping into the future. By accepting GenAI proactively, you won’t just survive the industry’s next chapter – you’ll lead it.
 

Want expert help implementing GenAI in your eCommerce strategy?

Reveation Labs can guide you every step of the way.

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