How Online Metals became the go-to marketplace for metals and plastics
The industrial sector is evolving rapidly, and Online Metals is at the forefront of this transformation.
Once a modest startup in a Seattle garage, Online Metals has grown into a leading innovator in the metals and plastics industry.
In this episode of Place to be, host Marc Teulières, general manager B2B at Mirakl, sat down with Greg Raece, president of Online Metals.
With a background that spans Microsoft, Starbucks and startups, Raece has played a key role in scaling the company from a niche online retailer into an industry leader.
Together they explore how Online Metals is driving digital transformation and setting new standards in the industry.
From garage startup to B2B digital pioneer
Founded in 1998, Online Metals was created to address an underserved need. While other suppliers focused on bulk orders and large contracts, Online Metals catered to smaller buyers with custom-cut metal pieces.
This approach, paired with a digital-first mindset, gave them an edge in simplifying a traditionally cumbersome procurement process.
After being acquired by ThyssenKrupp in 2007, Online Metals was able to access greater resources for growth while maintaining the agility that characterized its beginnings.
Today, the company operates across seven U.S. locations, serves over 400,000 monthly website visitors and offers nearly 80,000 products.
However, the true highlight is the innovative approaches Online Metals has embraced to stay ahead in the market.
Building a marketplace to meet modern customer needs
In 2023, Online Metals unveiled a game-changing initiative: the launch of a marketplace that expanded its product catalog from 50,000 to 80,000 items.
But this shift was about more than just adding materials to the inventory.
Online Metals revolutionized its business by adding third-party sellers specializing in niche metals and plastics, such as magnesium sheets or carbon fiber.
These vendors brought expertise and products that wouldn’t have been feasible for Online Metals to hold in-house.
This strategic shift propelled Online Metals toward becoming a comprehensive, one-stop shop for metal and plastic materials.
According to Greg Raece, the marketplace addressed a critical problem — expanding inventory with a traditional model required massive investment and storage capacity that wasn’t sustainable.
By onboarding external sellers, the company bypassed these hurdles while better meeting customer needs through a wider range of product offerings.
Customers browsing Online Metals’ eCommerce website can now find marketplace items listed alongside stocked inventory. With unified pricing and streamlined shipping processes, this integration ensures a seamless and consistent shopping experience.
The innovation went beyond enhancing the customer experience. Online Metals supported sellers with data cleanup, pricing autonomy and seamless integration into the marketplace.
“We spent a lot of time working with sellers to get that right, get the data cleaned up, to ensure that they set the pricing the way that they want to set, because that’s theirs... Our approach has really been to ensure that each seller is successful on the site.”
These efforts have fostered a mutually beneficial ecosystem for both buyers and vendors.
How Online Metals built their one-stop shop for materials
Online Metals becoming a one-stop shop is the result of years of digitization and relentless commitment to improve customer experience.
Their transformation was driven by several key initiatives:
1. Expanding beyond metals
Online Metals started with metal pieces cut to custom specifications but quickly recognized the value of diversification.
By expanding their product offerings to include plastics, rubber, carbon fiber and other niche materials like precision-ground aluminum, they positioned themselves for scalable growth.
This strategic move enabled them to serve industries as varied as aerospace, robotics and education, solidifying their reputation as a go-to supplier for any material need.
2. Integrating third-party products
To truly become a one-stop shop, Online Metals launched a marketplace that combined their in-house inventory with third-party sellers.
This integration expanded the product range while introducing experienced sellers, ensuring customers had access to expert guidance and tailored solutions, all through a single, streamlined platform.
3. Prioritizing digital convenience
A seamless digital experience was key to their one-stop-shop vision. Online Metals’ eCommerce website allows customers to easily browse a broad and integrated catalog that includes both in-house and marketplace inventory.
Customers can access instant pricing for custom cut materials and benefit from clear, well-organized product listings. This digital-first approach makes it easy to find, compare and purchase everything needed in one seamless online experience.
4. Fostering a community of innovators
By reaching a wide audience, from DIY enthusiasts to aerospace engineers, Online Metals created more than just a store — they built a hub for innovators.
Showcasing customer projects and success stories has helped them cultivate a loyal, engaged community that views Online Metals as a trusted partner in their creative and professional endeavors.
Through diversification, marketplace integration and a focus on user-friendly digital tools, Online Metals has strengthened its reputation as the ultimate one-stop shop for materials.
A marketplace shaping the future
Online Metals has ambitious plans for the future. According to Raece, the company aims to empower its own buyers to become sellers, further expand into new product categories and develop its digital marketplace.
By continuously enhancing its platform and creating new opportunities for its community, OnlineMetals is set to transform commerce within its industry.
Tune in for more insights
Learn more about Online Metals’ strategic approach, the challenges they overcame and how they’re shaping the future of industrial eCommerce.
Tune in now to the third episode of Place to be featuring Greg Raece, president of Online Metals, and discover how they are transforming the industrial eCommerce landscape.
