Raw materials break most e-commerce assumptions. One alloy comes in dozens of shapes, lengths, and certification states, and a 20-foot bar weighing thousands of pounds doesn't drop neatly into a 3PL warehouse. Kyler Nixon sits down with Greg Raece of Online Metals to talk through what happens when a distributor decides the answer isn't more inventory.
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Greg describes the problem as an infinite warehouse: there is always another material a customer wants that requires additional processing before it can ship. Rather than stock it all, Online Metals opened its own website to third-party sellers, with their pricing, their descriptions, and their fulfillment, intertwined into one catalog and one checkout.
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The conversation covers how they spotted latent demand, why they rejected the direct drop-ship model, what selling on Amazon costs a certified product, and how they market a marketplace when 100-plus sellers all want the same email slot.
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👤 Guest Bio
Greg Raece is President of Online Metals, the Seattle-based e-commerce supplier of cut-to-size metals and plastics, founded in 1998 and now part of thyssenkrupp Materials NA. He was appointed president in November 2016 and led the launch of the company's third-party marketplace, which has since grown past 100 curated sellers and doubled the size of the catalog. His background before Online Metals includes Microsoft, Starbucks, and startups.
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📌 What We Cover
- Why a raw materials catalog behaves like an infinite warehouse, and why six warehouses still can't cover it
- How Online Metals read latent demand from site searches, sales conversations, and customer service calls
- The direct model they rejected: when a supplier's price moves after you've already promised it on the website
- Letting sellers control price, description, and fulfillment so the seller owns their own profitability
- What Amazon strips out: no heat lot, no alloy history, no mill test report, and a B2B order compressed into a B2C format with lower AOV
- One cart, one checkout, shipping from different locations, with marketplace product intertwined into the main catalog rather than behind a login
- Sellers using the marketplace as a live pilot before Online Metals decides to stock an item itself
- The product data gate every seller clears before graduating into loyalty, email, and promotions, plus why selling coal to blacksmiths made the newsletter
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🔗 Resources Mentioned
- OnlineMetals.com
- Amazon, referenced as both a channel Online Metals sells on and the model they deliberately built against
- Greg Raece on LinkedIn
- Kyler Nixon on LinkedIn