The world of commerce has undergone a significant change in recent years. Customer expectations have changed and a new generation of the smart era has started working in decisive roles. The habits and demands of customers known to us from B2C are being transferred to the B2B sector as well.
In order to keep up with consumer expectations, more and more B2B companies are turning to digital channels. While B2C e-commerce has received a lot of attention, B2B e-commerce is becoming increasingly more important for those companies that want to remain competitive in the future.
The difference between B2C and B2B e-commerce
B2C e-commerce refers to the buying and selling of goods and services between businesses and individual consumers. B2B e-commerce, on the other hand, refers to the buying and selling of goods and services between businesses. While B2C e-commerce has been around for decades, B2B e-commerce is a relatively new phenomenon. However, it is rapidly gaining popularity as more and more businesses realize the benefits of digital commerce.
Why is B2B e-commerce important?
Above all, customers are looking for an increasingly convenient and efficient way to do business. A completely new generation of decision-makers has grown up, who are not used to communicating on the phone, e-mails or spreadsheets. For them, convenient electronic means of communication and user-friendly environments are inevitably necessary in communication. In addition, the pandemic has changed people’s work habits, and companies have to find ways to serve customers 24/7.
With B2B e-commerce, customers can easily find and buy products online (24/7) without the need for phone calls or emails. This can improve customer satisfaction and loyalty and increase sales. In addition, B2B e-commerce can help businesses reduce costs by automating the order and fulfillment process. By automating many of these processes, companies can reduce the need for manual labor and improve efficiency and speed. Finally, B2B e-commerce can help companies remain competitive in today’s business environment. As more and more businesses move to digital channels, those who don’t invest in B2B e-commerce risk falling behind their competitors. By embracing digital commerce, companies can position themselves for long-term success and growth.
Benefits of B2B e-commerce
B2B e-commerce offers several advantages to companies. First, it can increase sales by making it easier for customers to find and buy products.
It can also reduce costs by simplifying the ordering and fulfillment process. In addition, B2B e-commerce can improve customer satisfaction by providing customers with a more convenient and efficient way to do business.
In some areas, the opening of a B2B sales channel can completely change the competitive situation and decisively change the balance of forces in the market.
B2B e-commerce sales growth is expected to reach $1.8 trillion by 2023, according to a recent report by Forrester. This growth is driven by a number of factors, including the growing number of new-generation shoppers, the rise of mobile commerce and the increasing demand for personalized experiences.
Challenges and risks of B2B e-commerce
While B2B e-commerce offers many advantages, it also comes with its own challenges and risks. For example, companies need to ensure that their e-commerce platform is secure and able to handle the expected transaction volume. They also need to be able to integrate their e-commerce platform with existing systems and processes.
You should not completely hide your customer service and communication behind a B2B self-service center. To reduce risks, companies need to carefully evaluate their options when choosing a B2B e-commerce platform. It is worth looking for platforms that offer sufficient security, as well as integration with existing systems. You also need to think about the scalability of the platform and the ability to offer personalized experiences to customers.
Key features and characteristics of a B2B e-commerce platform
When choosing a B2B e-commerce platform, businesses need to look for a number of key features and functions. These include:
- Integration with existing systems: The platform must be able to integrate with the company’s existing systems and processes, such as ERP and CRM systems.
- Security features: The platform must provide strong security features.
- Scalability: The platform must be able to accommodate the volume of planned visits and transactions and be able to grow with the company.
- Personalization: The platform must be able to provide customers with personalized experiences, such as tailored prices and product recommendations.
- Mobile optimization: The platform must be optimized for mobile devices, as more and more customers use mobile devices to make purchases.
B2B e-commerce success stories
Many companies have already achieved significant sales growth with B2B e-commerce. For example, industrial products leader Grainger saw a 30% increase in online sales after launching its e-commerce platform. Similarly, networking and communications technology provider Cisco saw a 300% increase in online sales after implementing a new e-commerce platform. Several of these examples have fallen since the beginning of the coronavirus pandemic. But here it is only worth considering what their turnover would have been in a situation where a well-functioning B2B sales channel was absent.
- Uline – Uline is one of the largest packaging companies in North America, generating $3.8 billion in revenue through its B2B e-commerce platform in 2019.
- CDW – CDW is one of the largest technology and IT solutions providers in the world, with 15.9% growth in B2B e-commerce sales in 2020 and earning a total of $18.3 billion in sales.
- Grainger – Grainger is one of the largest suppliers of industrial products and services in the world, with B2B e-commerce sales growing 11.3% in 2019 and earning a total of 11.5 billion dollars in turnover.
- Helloprint – a Dutch printing services company that has successfully grown through a B2B e-commerce platform, generating 60 million euros in revenue in 2020.
- Zalando – a German fashion company that has successfully expanded its B2B e-commerce platform, generating €1.2 billion in revenue in 2020.
- Farnell – a UK electronic components and accessories company that has achieved success through its B2B e-commerce platform, earning 1.5 billion dollars of turnover in 2019.
- Conrad Electronic – A German electronics company that was able to double its sales and achieve a 30% increase in web traffic after launching its B2B e-commerce platform.
- Konecranes – a Finnish lifting equipment manufacturer that has successfully integrated its B2B e-commerce platform with its existing systems, generating 3.2 billion euros of turnover in 2020.
Conclusion: the investment in B2B e-commerce pays off
In today’s business environment, B2B e-commerce is no longer a luxury, but a necessity. B2B companies that do not digitize their sales processes and invest in e-commerce risk falling behind their competitors.
Decision-makers of the new generation no longer sit in front of a large Excel spreadsheet or telephone exchange during working days, but make purchase decisions in the evening on the sofa or on the terrace of a cottage.
By investing in B2B e-commerce, companies can increase sales, reduce costs and improve customer satisfaction. And they can offer their employees and customers much greater efficiency and flexibility.
To get started, companies should carefully evaluate their options when choosing a B2B e-commerce platform and work with experienced partners to ensure a successful implementation. With the right platform and strategy, B2B e-commerce can be a game-changer for businesses, allowing them to stay competitive and thrive in the digital age.
