Editorial
The Gist
- Competitive edge gained. B2B ecommerce is rapidly growing, offering businesses a competitive advantage.
- Streamline complex sales. Effective B2B ecommerce simplifies complex purchasing processes and enhances efficiency.
As consumers, we are all familiar — and comfortable — with online shopping. According to Forbes, 20.1% of retail purchases are expected to take place online in 2024, meaning the global ecommerce market is expected to total $6.3 trillion. B2B ecommerce sales are predicted to reach $1.8 trillion, which accounts for less than 30% of the total online sales.
Are B2B Online Shoppers an Eldorado?
All trends show that B2B ecommerce is one of the fastest-growing sales models. What are the top B2B ecommerce sectors?
- Manufacturers: B2B ecommerce platforms enable companies to source equipment from suppliers and distribute their products to wholesalers or retailers.
- Distributors: B2B ecommerce platforms enable distributors and wholesalers to connect with manufacturers and retailers to facilitate inventory and order management processes.
- Retailers: B2B ecommerce is vital to source products, and manage orders and inventory. The major retail industries to leverage ecommerce are healthcare, hospitality and food services, construction, and IT and electronics.
- Professional Services: B2B ecommerce is becoming more relevant for consulting firms, marketing agencies and legal services as it facilitates collaboration and project management.
Related Article: How Ecommerce Influences B2B Analytics
B2B ecommerce is a new playing field to your business, and you are wondering whether it is worth the risk and investment.
You may review the following objectives that successful B2B ecommerce businesses pursue:
- Tap into a growing market that will otherwise be invested by your competitors.
- Reach new buyers and markets to increase sales, reduce risks or compete with new players.
- Increase brand recognition and get full control of your brand assets in the digital world.
- Enhance efficiency to reduce costs, get more productivity and empower staff members.
- Optimize order and inventory management, and speed up delivery and (re) fulfillment.
Related Article: B2B Sales Have Embraced the Shift to Digital
Similarities and Differences Between B2B and B2C Ecommerce Strategies
The frontier between B2B and B2C customer behaviors is getting more and more blurry. B2B buyers want the same shopping experience as B2C shoppers, with a focus on efficiency and outstanding customer experience.
Obstacles to Implement a B2B Ecommerce Strategy
According to Statista, 54% of B2B companies list budget as the biggest obstacle to adopting digital selling channels.
Other barriers that B2B businesses are facing are the following:
- B2B relationships are personal, and purchase decisions involve close relationships. The workaround is to create customer segments and a personalized messaging strategy.
- Like mentioned before, the buying process involves many stakeholders, potentially for over a year. Integrated digital tools, such as CRM platforms or ERP, are the solution to keep track of the entire decision cycle.
- B2B organizations need different payment and shipping options to meet their client needs. Price transparency, additional payment options like bank transfers or credit and tailored shipping options must be explored.
- Product management is another challenge to overcome. Custom catalog, tailored pricing structure and reliable inventory management are a key success factor to a B2B ecommerce strategy.
- Security is critical. Access and storage of customer data, hosting, privacy policy and GDPR, training employees on security are part of your successful strategy.
Risks When Building an B2B Ecommerce Strategy
We would not be exhaustive in our analysis if we ignored the risks you may face when building the B2B ecommerce strategy for your business.
When companies decide to sell online, it represents a major shift, and your staff might feel overwhelmed. To reduce the risk of not onboarding employees, change management is critical. Explain clearly the objectives and rationales, involve them from the early stage and make them accountable.
In addition, you want all resources or departments to be aligned on the objectives and the way to achieve them. Several teams will be participating, from sales and marketing, IT, operations, finance and customer service.
Another risk is related to larger budgets that B2B ecommerce projects represent compared to B2C projects. Ecommerce platforms tend to be more complex as we discussed previously.
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Last but not least, what if your customers don’t get onboard?
It is common knowledge that people don’t like to change the way they operate but reality is different if we look at some numbers from Gartner and Gitnux:
- 83% of B2B buyers have a strong preference for digital ordering
- 70% of them prefer ecommerce websites over sales reps
- 88% prefer an Amazon-style self-serve experience
Now the question: Do you have the internal resources to succeed, or do you need to outsource?
And remember: “Only those who play win.” — Iveta Cherneva
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