B2B businesses must remain responsive to buyer expectations, which have increased substantially due to the Pandemic and an influx of millennials entering the B2B marketplace.
Cold calling, paper-based transactions, and offline marketing methods have passed their prime. Todays B2B customers expect the same experience that consumers do from sellers - and when those sellers fail to deliver it, they become frustrated and leave.
Purchase decisions made for B2B purchases are heavily impacted by buyers direct and indirect experiences, with 87% willing to pay more if vendors offered superior ecommerce stores experiences and portals, up from 74% to 81% in 2019/20, respectively.
B2B sellers must recognize and adapt to meet the evolving demands of B2B buyers in an ever-evolving business world.
Digital conversion may seem intimidating for legacy systems-dependent B2B companies; this guide offers help modernizing your B2B company by covering essential topics such as marketing strategies, misconceptions and the benefits of using a B2B platform.
B2b Ecommerce Comes In Many Different Forms
Gartner estimates that by 2025, 80 percent of B2B transactions will occur via digital channels. Further, new ecommerce technology is helping lower entry barriers for both B2C companies that wish to branch into B2B (B2C2B) and B2B businesses that want to sell directly to consumers (B2B2C).
You could fall under one or more of these categories if you run a B2B company. Each entity offers advantages and drawbacks; certain types of ecommerce business even fit multiple categories.
Business-To-Business To Consumer (B2b2c)
Ecommerce explicitly designed to facilitate B2B-to-Consumer interactions cuts out the middleman between B2B organizations and B2C consumers by connecting directly with them via B2C models.
B2B2C transactions involve interactions between manufacturers or wholesalers selling products with consumer sales models such as Alibaba or Alibaba.
Wholesalers send products directly to B2B companies, who resell them to consumers through B2C business models such as direct selling, partnership arrangements with other B2Bs or virtual stores.
A B2B2C business model also allows manufacturers or wholesalers to reach end consumers directly or via partnerships between these entities; such transitions typically happen online via apps, eCommerce websites or virtual stores.
Many B2B2C ecommerce models provide customers with an awareness that their purchases come from an independent business.
Consumers can buy directly from an affiliate blog; however, their brand and product will come now from its manufacturer.
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Wholesale
Businesses purchase bulk quantities at discounted prices before selling them as retail goods, typically through distributors or manufacturers.
Wholesale can be described as another form of B2B trade. Many industries, such as construction, retail, and food services, utilize wholesale B2B business models. Wholesale deals typically occur over the phone, by email, or using spreadsheets.
Wholesale eCommerce takes place entirely online via B2B platforms that facilitate product display and buying experiences more smoothly for both wholesalers and their buyers.
B2Cs are increasingly turning to ecommerce as part of their growth strategy, leading the B2B market forward. Switching over can be done smoothly but may involve some learning curve; B2B purchases tend to be larger and costlier than consumer ones, and sales depend heavily on maintaining relationships over time with suppliers.
Manufacturers
Manufacturing firms typically create large volumes of finished goods using parts, raw materials and manual labor in conjunction with machines.
B2B models sell finished goods to suppliers, manufacturers or wholesalers. Automobile industry manufacturers provide an exemplary example of business-to-business transactions. A manufacturer produces individual car components like an engine or fuel pump before selling these pieces to companies that assemble, build and sell complete vehicles from them.
Manufacturers have also begun conducting business online, similarly to wholesalers. According to the State of International Ecommerce Report, over one-third of manufacturers expect B2B sales growth of at least 32% between 2022-2023.
54% want to sell directly to consumers. B2B buyers expectations are changing quickly, and manufacturers must adapt accordingly.
Not just B2C clients are demanding more. Distributors, wholesalers and channel partners also look for manufacturers offering digital product purchasing options - which enable them to check pricing information, order status updates, and view products online.
Distributors
After leaving a factory, products have two possible outcomes after reaching customers: either selling directly to them (if preferred by the producer) or going through distributors and having to deal with orders management, packing, marketing etc.
(both options leave the producer in control over the sales process and decisions about product marketing/sale).
If he prefers the direct sale option, they can sell to the customers directly as this provides more control in the sales aspect of the business).
This leaves the direct sellers with additional responsibilities, like packing/marketing, for each sale directly made. Distributors act on behalf of manufacturers to increase sales by increasing visibility for their product category.
Ecommerce models are distinguished from B2B business models by taking place online, typically via an ecommerce platform, where sales and logistics processes occur.
Distributors strive to offer customers an experience that goes above and beyond expectations, as is typical within this commerce model.
Marketplaces such as Amazon, eBay and Walmart demonstrate distributors immense opportunity for growth through online sales.
Ecommerce adoption increased 26.3% between 2019 and 20; Amazon set the standard with their personalized automated experiences, while distributors must invest in cutting-edge technologies to retain customer interest.
B2B Ecommerce Statistics
B2B commerce has arrived. Digital Commerce 360 estimates that online sales from B2B sites, login portals, and marketplaces will increase 17.8% to reach $1.63 trillion; Statista forecasts that by 2025 North American B2B market size could surpass $4,600 billion.
Ecommerce is no new trend being explored by B2B businesses. McKinsey & Company reported that approximately 65% of companies across all industries would transact exclusively online by - more B2Bs will offer sales online than offline for the first time!
Ecommerce drives revenue because of its income: according to a research, 18% of B2B revenue directly stems from online purchasing -- this outnumbers email, phone calls and videoconferencing combined!
Wonderman Thomson data indicates that 2, 49 per cent of B2B purchases will occur online within the UK, US and China.
To succeed in B2B online commerce, an outdated website and poor customer experiences must not exist.
52% of B2B customers are dissatisfied with their online shopping experience, and 90% would move on if digital channels could no longer meet their demands.
B2B companies must prioritize digital transformation efforts before 2023 to offer customers an exceptional digital shopping experience.
2023 Trends In B2b Ecommerce
B2Bs will have plenty of work ahead in 2023; below are the critical B2B eCommerce business models trends that should help them succeed with this model.
- Legacy systems should be discontinued.
- Invest in ecommerce platform technology.
- Customize your online shopping experience.
- Prioritizing information and product knowledge must always take precedence.
- Selling across online marketplaces.
- Exploring social media platforms is an excellent place to begin your research.
- Orders may even be fulfilled more promptly.
Legacy Systems Should Be Discontinued
By 2023, 36% will face significant difficulties upgrading legacy systems to deliver B2C experiences for existing and prospective customers.
If your goal is to offer B2C experiences on par with others in your market, having suitable systems is imperative to success.
Many businesses make the mistake of only upgrading systems when necessary, leading them down an increasingly complicated technological path and leaving them back at square one.
Create a digital transformation plan based on the goals and vision of your business rather than only technical requirements. Ken Cowan, Head of Product Partnerships at Salsify, offers advice on beginning your digital transformation.
Invest In Ecommerce Platform Technology
As you plan the digital transformation of your business, B2B platforms should serve as the centrepiece. 35% of US-based B2B firms prioritize investing in technology related to these platforms.
Not all ecommerce solutions are created equal, yet some still provide a one-size-fits-all solution.
Platforms not supporting B2B functionality represent another side of this spectrum; instead, they might offer features or workarounds.
Modern SaaS ecommerce software delivers all the advantages associated with SaaS offerings, such as robust security, rapid innovation, reduced total cost of ownership, and B2 B-specific features. Integrability is of utmost importance when choosing the ideal business system to run.
Customize Your Online Shopping Experience
According to one recent study, 50 B2B buyers reported enhanced personalization when looking online for suppliers with whom they can build relationships; additionally, consumers spent 48% more when their experience was tailored specifically.
TYGRIS, a digital agency, used an approach that did not require specialist knowledge to craft personalized customer reviews experiences.
MyTYGRIS.com is an intermediating middleware platform developed with APIs and Dropbox Business APIs to allow customers to place orders, check stock levels or push/pull data between Dropbox Business accounts via API access.
MyTYGRIS acts as an integral validation system between all connected systems.
Headless commerce has also become popular with B2B companies looking to provide personalized shopping experiences and deliver seamless transactions.
Various personalization tools allow marketers to utilize AI for customer base segmentation. These solutions enable instantaneous action via trigger email marketing or automatic optimization processes.
Prioritizing Information And Product Knowledge Must Always Take Precedence
Information and product knowledge should be prioritized in online shopping for B2B goods and services. At the same time, consumers have difficulty accessing up-to-date product and pricing details once they do find physical products.
B2Bs may use several strategies to address their data management needs. One such solution would be software for product information management (PIM). PIM helps collect, enhance and organize product data across channels - mobile apps, websites, social media accounts or marketplaces.
Ken Cowan, Salsifys Director of Product Partnerships, demonstrates how important product content management is in omnichannel retail sales: Back-office technologies can assist B2B companies with automating processes.
Many B2Bs rely on spreadsheets for product or inventory information storage; by employing back-office software like an ERP solution, all of your product details will be housed centrally - updates or modifications can be immediately visible online. Chatbots can be an excellent way to direct customers toward product description pages or encourage dialogue between B2B teams and clients.
Selling Across Online Marketplaces
A B2B buyers journey would only be complete with marketplaces; many begin product research or find inspiration there.
Amazon Business has become increasingly popular, using 15% of US and UK buyers and 20% of UK customers, respectively. Third-party marketplaces allow businesses to attract new clients and boost sales while testing global markets or new product development.
Freakonomics is an invaluable tool successful B2B retailers use to optimize their market strategy and streamline Amazon listings.
Integrating Feedonomics into Amazon Business also enables retailers to offer discounts or special pricing promotions only visible to registered Amazon Business customers, rewarding loyal customer base through deals exclusive to registered Amazon Business users.
Exploring Social Media Platforms Is An Excellent Place To Begin Your Research
Once dominated solely by B2C companies, many B2B organizations now recognize the value of joining these channels to reach customers directly.
Gartner reports that 46% of B2B buyers use social media to research solutions, 40% to compare them, and 35% as an information-gathering source before purchasing.
Gartner recently discovered an unexpected finding - 54 percent of businesses had established online storefronts using social channels commerce platforms such as eBay or Shopify.
If selling or providing checkout via social media channels is manageable, B2B marketing tools may provide another means of promotion and sales.
Select platforms most suitable to reach your target audience, then produce posts like videos showing how your product functions or customer testimonials to gauge which pieces of content resonate most strongly with them.
Once complete, evaluate which kinds of posts prove the most successful among that group of followers.
Orders May Even Be Fulfilled More Promptly
Order fulfillment times have become even quicker as more B2B businesses enter the digital marketing space; since Amazon launched, 73% of millennials participate in B2B purchasing today! Order management software provides another means by which B2Bs could attract buyers.
Order management programs streamline fulfillment processes while helping B2Bs manage orders across platforms while centralizing data to simplify supply chains and decrease complexity.
Third-party fulfillment (three-party fulfillment or 3PL for short) may help B2Bs speed things along and remain on an upbeat growth track.
3PL can also reduce expenses related to managing inventory if your Company is rapidly growing and fulfillment costs continue to escalate, or you are spending too many hours working stock levels on-premises.
What To Do If Unsure Of Trends Appropriacy
Which Trend Should Be Priority While specific trends might add value, others may be less relevant or expensive for your audience or too complex.
Understanding your customers, industry, and competition will enable you to determine which trends are right for your business by monitoring trends in your operation and taking appropriate actions for maximum effect.
Keep Up-To-Date With Industry Data And Reports
Change is inevitable in every industry. Keeping yourself abreast with reports can give an accurate view of future developments.
These reports often rely on original research explicitly conducted to answer this question rather than following wide variety rumors. Youll also be able to assess which trends within your field are worth following and which are better left in wait-and-see mode.
Pay Attention To The Clients Behavior
B2B online commerce gives businesses first-party customer data that allows for digital transformation efforts. When we sat down with Kees Olthof, Senior Manager for Consumer Experience at Gildan and discussed digital transformation, he stressed the value of using data analysis techniques to understand your clients behavior more deeply.
B2B companies should use data-driven approaches in their online operations shifts. Although this can only be accomplished online, Web analytics provide quantitative data - "what".
Qualitative insights come through feedback or surveys and feedback management processes; you could even try changing culture to be open-minded while validating assumptions."
Your B2b Clients Should Provide Valuable Input
Reaching out directly can also give insight into any problems customers are having and offer ways to solve them.
Asking current customers for their opinion also provides invaluable information that helps create better plans and identify trends.
Do Your Competitors Follow Suitors Lead?
Carefully observe what your competitors are up to; have they joined a trend, how has that gone, etc? While you dont necessarily need to follow in their footsteps, using this data as a benchmark allows you to gauge its success or failure in future ventures.
What The B2b Sector Is Changing Due To Ecommerce
B2B has not adopted eCommerce as quickly as B2C brands. Take into account electronic account payments, which are essential to eCommerce.
Sixty-seven percent of B2C payments can be made online.
The delayed uptake of B2B eCommerce technology results from numerous issues. The initial expense of fully converting to electronic payment gateways is one crucial aspect.
Since electronic payment methods are so necessary, 46% of American suppliers said they couldnt afford them. However, the landscape is changing, and eCommerce is becoming more mainstream in B2B. According to a survey, the B2B eCommerce market in the US will grow to $1.8 trillion by 2023.
Why Accelerated Growth?
Indeed, its pretty easy. The significance of eCommerce is now being recognised by the B2B market. It takes time for recipients to understand the benefits of eCommerce fully.
Resistance will vanish as soon as the advantages become apparent. These are the main advantages.
New Sales Channels
A robust eCommerce site can give the business access to additional sales channels from companies that might not have known about it otherwise.
More Customers
B2B buyers use the internet to look for suppliers and manufacturers and compare costs. If these B2B customers can locate eCommerce development companies who can optimize their B2B website to have public-facing catalog pages designed to increase sales, they will discover brands.
Analytics That Works Better
An eCommerce website that is robust and well-designed will be the perfect platform to run an extensive analytics campaign.
This will increase your revenue. To profit from analytics, B2B eCommerce website designers must ensure that analytics are integrated with the brands ERP system.
This will enable the brand to assess the effectiveness of its marketing efforts, product mix, engagement, and sales strategies.
The B2B industry has benefited from the introduction of eCommerce. Lets examine how this affects the B2B sector now and what the future may bring.
Ecommerce Is Changing The Way Payments Are Made In B2B Industry
A recent survey by Deloitte revealed that the B2B eCommerce payments market is expanding more quickly than anyone could have predicted.
The numbers indicate that the industry in the United States will reach $2.77 trillion by the following year. This implies that the sum will be more significant if you include the rest of the world.
The B2B paradigm for orders and payments is evolving. The majority of B2B border transactions in recent years have been performed via websites, mobile phones, or emails, according to a survey of more than 500 multinational retailers.
Online orders come in front with 80% of the niche market, followed by mobile phones at 77% and email at 72%. Mobile wallets like Amazon Pay are increasingly popular, accounting for 26% of transactions.
Ecommerce Helps The B2B Industry To Mitigate Risks
A brand can only succeed if it can mitigate risks leading to failure. The most considerable risk in B2B is investing too much and only making a small profit.
You can use cutting-edge technology like cloud computing to build a low-cost B2B site with the help of an eCommerce website design business. As was already indicated, it is simple to use the website to create new sales channels, attract additional clients, and conduct analytics that will help you strengthen your brand.
In this manner, you only make investments you can afford. However, it is possible that even a small investment can bring you tremendous results.
This lessens the possibility of your brand losing everything.
Ecommerce Fulfils A Need For A New Crop Of B2B Buyers
In the past, a corporation would first contact the salesperson if it wished to conduct business. After lengthy negotiations, the salesperson would sign the contract on the companys behalf.
Online is the best place to start your search engine optimization today. According to a recent study, 74% of consumers research online before making an offline purchase. Google shopping also reported that 42% of B2B purchasers do their web research before purchasing.
Most purchasers in this new generation are millennials, who identify as digital natives. Nothing is genuine unless it is available online.
An intriguing statistic in digital commerce states that if a buyer cannot use a vendors mobile app, 60% of purchasers will quit doing business and communicating with them. This demonstrates how B2B purchasers needs are currently being met by eCommerce, specifically by well-implemented eCommerce.
What Does This Mean For The Future?
The B2B industry will continue to shift as a result of eCommerce. There will also be noticeable new improvements that reflect the newest technologies.
Technologies like augmented reality (AR), virtual reality (V)R, and chatbots are advancing.
Future B2B eCommerce sites that want to give potential customers more rich experiences will likely embrace these technologies.
Its simply a question of time because eCommerce website developers are already utilizing these technologies. The B2B eCommerce market will expand, as was already mentioned. It might potentially overtake the B2C eCommerce market in the future.
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Conclusion
Fantastic improvements are being made in the B2B sector by eCommerce. There are some downsides, such as fraud. The positives outweigh the negatives.
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