The State of Sales in Distribution 2026
CEO Executive summary
We are pleased to share the latest Phocas intelligence survey, which focuses on selling in distribution.
I often feel like distributors invented the practice of selling. They take on the risk of buying inventory and only got paid back by selling it on. This same business model continues today, but distributors operate in a more complex and volatile global market. To stay competitive they need to understand their business performance down to the SKU level. Many distributors began as family-run businesses, and this survey shows that 52% of respondents remain family owned, which helps explain the industry's ongoing emphasis on relationship-led selling. After 25 years of working closely with distributors and helping sales teams use data more effectively, I see this survey as a turning point. Data, technology and AI are driving much of the industry's success, but the 100+ sales professionals we surveyed know there is more they can do with data insights and measurement to reach best-practice selling.
Thanks to everyone for taking part.
Myles Glashier
Six key findings about selling in distribution
1
Distributors prioritizing new business measure success more than sales teams focused on retention
2
Many distributors don't track what's driving their sales performance
3
AI use is becoming mainstream in distribution sales and collaboration is the next frontier
4
What distribution customers value most depends on the market they're buying from
5
Digital hasn't replaced field sales reps in distribution
6
Experienced and newer sales reps see customer change differently
Distributors prioritizing new business measure success more than sales teams focused on retention
Distributors who name new-customer growth as their top priority are also the most disciplined about measuring it, they track their new-business win rate more consistently than distributors who prioritize expanding existing accounts.
of distributors prioritizing new-customer growth track their new-business win rate, compared with 46% of those focused on existing-account expansion.
Distributors talk about new-business and existing-account tracking as separate disciplines, not two sides of the same measurement habit.
Customer quote
The existing business just plods along all the time. The new business is the focus and how we monitor that, how we see what's going on, where we can offer help to try and get something over the line
Many distributors don't track what's driving their sales performance
Across every core sales benchmark, a consistent proportion of distributors don't measure these sales metrics. Without these insights, it is difficult for distributors to learn from past results or sharpen the sales approach going forward.
of distributors don't measure their new-business win rate
don't measure their existing-account win rate
don't track or don't know their forecast accuracy
don't measure customer retention
Customer quote
I don't think we're reporting on a lot of important stuff like retention analytically because it's just too hard to get the data. So at the moment, we don't know what we don't know.
AI use is becoming mainstream in distribution sales and collaboration is the next frontier
49% of distributors are already using AI for sales, 29% plan to adopt within six months and 22% have no plans to adopt. The AI resistance is concentrated, with every respondent who has no plans to adopt AI forms part of a sales team of under 20 reps. Adoption also aligns with data maturity because these sales professionals next want sophisticated cross-functional capability, while non-adopters are focused on CRM adoption and better account prioritization. These findings line up with external benchmarks tracking the sector, such as the National Association of Wholesaler-Distributors' 2026 AI Adoption Index.
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40% of AI adopters say greater collaboration across the business is the one capability that would most improve their sales team, versus 17% of those planning to adopt within six months and 0% of those with no plans.
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Non-adopters cluster around CRM adoption and account prioritization, together accounting for 58% of their answers, versus 35% for adopters.
What distribution customers value most depends on the market they're buying from
Service and a relationship narrowly edge out best price as the main customer want overall, but the split depends heavily on the industry vertical.
of consumer goods brands distributors say their customers want best price above all else, the only vertical where price wins outright.
Digital hasn't replaced field sales reps in distribution
Field or outside sales remains the dominant sales channel across nearly every vertical. This finding likely comes down to product and usage knowledge being the most valued sales skill in distribution. This level of care is hardest to deliver at a distance, especially in verticals like industrial machinery and electrical, where reps manage complex product mixes with technical specifications.
name field/outside sales as their most effective channel, versus just 5% for e-commerce.
say strong product and usage knowledge is a top attribute of an effective sales rep, well ahead of any other skill.
Experienced and newer sales reps see customer change differently in the distribution industry
Experienced reps cite the difficulty of retaining and growing existing accounts, while newer reps point to a more digital, higher-expectation-of-customers shift.
of experienced reps (26+ years) say retaining accounts has become more challenging, compared with just 13% of reps under 10 years.
Family ownership remains the backbone of distribution
More than half of respondents work for family-owned businesses, outnumbering public, private-equity-backed and group-owned companies combined. Consumer goods brands, HVAC/R and plumbing and industrial machinery are the most represented, together accounting for more than half of all respondents. Sales teams stay lean, as three-quarters consist of fewer than 20 reps. Experience runs deep, as more than a quarter of respondents have sold in distribution for over two decades. Account loads per rep spread evenly across every tier, from under 20 accounts to more than 400.
of respondents run sales teams of fewer than 20 reps
have worked in distribution sales for 26 years or more
work in consumer goods brands, the largest sub-vertical
What is your company's ownership structure?
Family ownership sets distribution apart. More than half of respondents work for family-owned businesses, dwarfing public companies, private-equity-backed firms, and those under a larger group.
Which distribution industry sub-vertical do you work in?
Reps learn the craft of selling in the field
Distribution sales has a strong focus on product knowledge and relationships. These two attributes are what sales reps deem important ahead of activity management, data and insights, or a can-do attitude. Interestingly, being innovative or trying new approaches was not considered a core requirement at this time. Reps learn on the job rather than in a classroom because on-the-job mentoring is the primary training method for 45% of distributors. Most teams work within some kind of formal sales methodology, account-based and key-account selling are the two most common practices.
Day to day, the problems sales teams face are different. The two most-cited internal issues are not knowing which accounts to prioritize and pipeline/forecast accuracy, but neither dominates, disconnected systems and coaching gaps sit close behind. When asked what information they have trouble accessing, most named at-risk customers.
What attributes are necessary to be an effective sales professional? (respondents were asked to select 3, so percentage is built from totals)
Strong product and usage knowledge is the core pre-requisite for being an effective sales rep, with long-term relationship management a clear second.
What is the most pressing internal issue in your sales team right now?
No single issue dominates sales teams in distribution, and that finding holds up within most verticals too.
How the role has changed most, by tenure
Experienced reps point to retention and relationship strain, while newer reps (less than 10 years working) say online sales and rising customer expectations are the key ways the profession is changing.
Customer quote
There's a lot of things to learn when new sales reps come to a distribution company. So many SKUs and a whole new territory. New reps start in the warehouse to physically learn parts.
Growth is at the top of the sales agenda
Growth is the main priority in distribution sales, whether it comes from new customers or existing accounts. Field and outside sales remains the most effective channel, and customers want service and a relationship first, with best price a close second. Order patterns split between a steady, regular cadence and a broad mix of order types which is a normal reflection of the range of customers most distributors serve.
What's your #1 priority in sales for the next 12 months?
Growing revenue from new customers edges out expanding existing accounts as the top priority but the two sit close together. Improving productivity, reducing customer churn, and improving margin trail well behind.
What sales channel is most effective for your business in 2026?
Field and outside sales is the preferred sales channel for 55% of respondents. However, 27% of distributors say all channels perform well, so they are likely providing a strong omnichannel experience.
What do your customers want most from you?
Service and a relationship narrowly edge out best price overall, with multi-category convenience and fast turnaround trailing behind. The customer desire changes depending on the vertical, consumer goods brands is the only one where best price wins outright (50%), while electrical and building materials and lumber both lean toward faster quotes over price or relationship. HVAC/R and plumbing and industrial machinery and equipment lean more toward service and relationship.
What customers want most, by industry vertical
Opportunity to strengthen sales with better measurement and insight
This section covering metrics reveals a tension between healthy underlying business trends and weak measurement rules. Order values are rising for almost half of distributors and most customers buy across multiple product categories, both signs of solid underlying demand. However, many distributors don't measure the metrics behind their sales performance. Distributors naming new-business growth as their top priority for 2026 often don't track how well their new-business quotes convert. Among those who do measure it, new-business win rates fall behind existing-account win rates. Keeping and growing existing accounts is easier than converting new business is a well-documented pattern across B2B sales, but it's especially pronounced in distribution, where relationships and repeat ordering keep the business profitable.
Average win/close rate on quotes for new business
34% of distributors don't measure their new-business win rate but among those who do measure it, results are strong, 27% close half or more of their new-business quotes.
Average win/close rate on quotes for existing customers
Existing-customer win rates run far higher than new-business win rates. 38% of distributors close 80% or more of their existing-account quotes, while a third don't measure it at all.
How accurate is your sales forecasting?
Average order value trend over the last 12 months
Nearly 40% of distributors either don't track forecast accuracy or don't know how accurate it is, and among those who do track it, results skew wide, more report being over 10% off than under 3%. Retention runs high where it's measured, more than half of distributors who track it report 85% or better. Order values are moving in the right direction for most distributors, almost half report an increase over the last 12 months, and only 10% report a decline.
Distributors are investing in technology but with varied results
Sales teams working in distribution have good access to technology. Half of distributors already use AI for sales and most run a stack of ERP, CRM, analytics and pricing tools. Impact ratings run highest for ERP, planning and budgeting, pricing and quoting and lowest for rebates and spreadsheets. Distributors who already get high impact from analytics are looking to do more advanced tasks with their data. When asked to name the one capability that would improve sales, distributors point first to better CRM adoption.
Are you using Artificial Intelligence for sales?
Half of distributors already use AI for sales, and almost all of the rest plan to within six months. Just 22% have no plans to adopt it at all.
Where do you see the biggest opportunity for AI in sales?
Sales teams in distribution see the most value from AI in identifying opportunities and prioritizing accounts, followed closely by broader data analysis and reporting. A meaningful share also point to CRM logging and admin automation. A notable minority aren't sure where AI could help, or don't see an opportunity yet.
What tools are in your sales tech stack, and how much impact do they have?
The tools sales reps commonly reach for day-to-day are pricing and quoting systems and spreadsheets, both used by seven in ten distributors. ERP, CRM and Analytics/BI each sit lower, likely because sales teams haven't incorporated these company-wide systems in day-to-day selling. General-purpose AI tools like Claude or ChatGPT have roughly the same adoption level as CRM. Adoption and impact don't always move together. ERP, planning and budgeting and pricing and quoting systems all rate high impact from around seven in ten of their users, while spreadsheets tell a different story. Spreadsheets are the second most widely adopted tool in the survey, used by 68% of distributors, yet only 32% of those users rate the impact high. Spreadsheets are a tool distributors keep reaching for without expecting much from it.
Analytics/BI sits in the upper half, with 58% of users rating it high impact, but that number masks another finding. Among distributors who use Analytics or BI tools and rate the tool's business impact as high are comfortable to extend their use of the software. The likely explanation is that distributors getting more value from the tool have moved beyond data analysis to more strategic use cases. Respondents who rate their analytics impact as medium or low most often cite getting accurate information and not knowing which accounts to prioritize as common issues, both foundational problems. Respondents who rate the impact as high instead cite pipeline and forecast accuracy or coaching and developing reps, a different, more advanced set of ambitions.
If your sales team could improve one capability, what would have the biggest impact?
Better CRM adoption tops the list. Greater collaboration across the business and better account prioritization follow close behind, and sales coaching and forecast accuracy are also included.
More than half of sales teams have CRM but only a third are using consistently
of distributors with CRM log 75%+ of their customer interactions in it.
Distributors need to put data first
Demand appears strong in distribution sales, order values are rising for almost half of distributors and cross-category buying is now the norm. Existing accounts are converting at high rates, field reps remain the most effective channel in almost every vertical, and half the respondents surveyed have already put AI to work. There's a lot happening and a lot working well. The opportunity in front of distributors is to do more with the data and technology.
Measurement is the clearest example of where changes can be made and distributors consistently aren't tracking the metrics that would tell them what's working, such as win rates, forecast accuracy, and retention. The same pattern holds for distribution sales technology, half of distributors own a CRM, yet only a third log more than 75% of their customer interactions in it.
This is the state of sales in distribution today, but it's evolving. As one respondent described it, tenured reps "get a bit stuck in their ways" with the customers "they get on quite well with," while newer reps coming into the industry are "a lot more active" on data and digital tools. The reps willing to put data at the center of how they sell will be the ones who define what comes next for distribution.
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