Dan Florness, president and CEO, Fastenal Co.
Digital sales transactions in various forms continue to grow steadily at Fastenal Co., accounting for 59.2% of total sales in the first quarter, up from 54.1% a year earlier, Fastenal said today.
The industrial products distributor said its total digital sales, which it refers to as its “digital footprint,” grew 11.5% year over year in the quarter ended March 31 to $1.895 billion, up from $1.859 billion.
Fastenal’s digital products and services are comprised of ecommerce transactions and sales through Fastenal managed inventory (FMI) programs, including FASTVend internet-connected vending machine programs that Fastenal deploys as part of its Onsite sales and services program located at or near customers’ facilities.
Fastenal sells industrial products in three main categories: fasteners used in original equipment manufacturing and maintenance, repair and operations (MRO) work; safety supplies; and other products ranging from metal-cutting tools to janitorial supplies.
Ecommerce daily sales grew 33.6%
The company’s ecommerce business includes sales through Fastenal.com and other web verticals, online technology integrations and EDI. “Daily sales through ecommerce grew 33.6% in the first quarter of 2024 and represented 28.6% of our total sales in the period,” the company said.
On a Q1 earnings call today, president and CEO Dan Florness said “ecommerce continues to get nice traction. And our digital footprint continues to expand. We’re approaching 60% of sales. And our anticipation is, sometime this year, that number will hit the mid-60s — 66 is our target. And ultimately, we believe that ends up being 85% of sales.
Fastenal says its overall digital sales transactions provide the information the company needs to foster ongoing growth.
Digital data drives more business
“We believe the data that is created through our digital capabilities enhances product visibility, traceability, and control that reduces risk in operations and creates ordering and fulfillment efficiencies for both ourselves and our customers,” the company says. “As a result, we believe our opportunity to grow our business will be enhanced through the continued development and expansion of our digital capabilities.”
A Fastenal inventory manager at an Onsite vending machine.
In addition, Fastenal noted the continued growth in the number of Onsite locations are helping to expand sales through the company’s vending machines.
For the first quarter, Fastenal also reported:
- Q1 daily sales through ecommerce grew 33.6%, accounting for 28.6% of our total sales.
- Net income inched up about 1% year over year to $297.7 million.
- Gross profit rose 1.3% to $861.1 million; profit margin was 45.5%, compared with 45.7%.
- 1,872 active Onsite locations sites on March 31, an increase of 11.8% from a year earlier.
Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.
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