B2B E-commerce: From a “Nice-to-Have”, to a “Must-Have”

E-commerce is no longer just a buzzword. Nowadays, it’s hard to imagine that something we’re looking for isn’t available online. While many of us are familiar with B2C e-commerce through platforms such as eBay and Amazon, adaption in the B2B space has been much slower.?

Many B2B businesses still believe their customers are traditional and not interested in e-commerce. While channels such as phone calls, emails, or even in-person sales remain useful, the average B2B buyer is becoming more tech-savvy and doesn't want to spend time scrolling through paper or digital catalogues or ordering via phone. Even before the pandemic, customer buying habits had started to shift, but the move to digital has put those companies without a robust digital sales strategy in a tough spot.?

Sales through digital channels have gone from being just a “check-in-the-box” to becoming essential components of business infrastructure.?

A 2021 McKinsey & Co report revealed that 66% of B2B customers choose either remote human services or digital self-service when given the opportunity, and traditional in-person sales are tied with e-commerce as the top revenue channels. Moreover, almost 60% of total B2B revenue is driven by digital channels.?

?

While all the numbers and trends should be convincing enough, there’s a common phrase we hear:?

“My traditional sales channels have been working just fine. Why do I need to adapt to e-commerce?" –Hypothetical B2B Business Leader?

?

Well, we at Villvay, are all about the “why” so let’s answer that!?

I’ve been in the marketing and advertising field for over a decade now and one of the key ways to get someone’s attention is by talking sales. So while there are numerous reasons and benefits, I’d like to list down a few that are bound to positively improve your bottom line:?

1 - More Business Opportunities?

Your B2B buyers are online, researching the best products and comparing prices. By taking your B2B sales channel online, you can capitalise on their buying intent while they research.?

Additionally, with a B2B e-commerce website, you can access new markets as your sales channels are available around the clock, making it easier for customers and resellers in different markets and time zones to purchase your products.?

2 - Improved Customer Experience?

A well-designed e-commerce solution provides your customers with access to self-service portals with various resources such as product details, reviews, shipping and handling information, along with their account and order history and delivery tracking. Integration with an ERP system allows for customer-specific products, services and prices based on user credentials.?

Personalisation is key to B2B e-commerce through features like optimised search functionality, machine learning and a recommendation engine that offer a tailored purchasing experience.?

Helping buyers find what they need and answer questions at their convenience will boost customer satisfaction and help you stand out from the competition.?

3 - Stronger Analytics?

Data is crucial for B2B sales. E-commerce allows businesses to acquire, analyse and measure data more effectively including customer engagement metrics, sales trends, product mix, inventory turns and much more.?

Integrating analytics with your ERP gives access to data that can take customer understanding to the next level. Your sales team also gets access to a wealth of information on each customer's transactions which they can use to provide personalised updates and support.?

4 - Increase Sales?

Finally, let’s talk numbers. A well-designed e-commerce platform gives your customers the necessary information as and when they want it and simplifies their ordering process. By configuring cross-selling and upselling features into your solution, you can increase the average cart value by offering customers relevant on-site suggestions and encouraging them to buy related items or items with more features and functionalities.?

Moving to B2B e-commerce provides your sales representatives with digital sales enablement tools, allowing them to better understand their customers, close more deals, and save time and money on manual processes. Improving the customer experience is critical for sales, whether online or offline. By accessing customer orders, pricing, and history, your sales team can provide a superior, personalised customer experience throughout the sales pipeline.?

?

Now that we’ve spoken about all the positives, we must address one key factor that might prevent business leaders to commit: FEAR OF DISRUPTION. ?

DEBUNKING THE FEAR OF B2B E-COMMERCE?

The fears of B2B e-commerce are not imagined. For businesses that haven't traditionally viewed technology as essential to their operations, keeping up with the rapidly changing world can be overwhelming. A few key factors that might add to this fear mindset are:?

?

Customer Hesitation?

While some B2B businesses may be thinking that disrupting their business model may cause them to lose customers. But based on the consumer trends and behaviours mentioned above, we see that this isn’t the case at all. Customers are ready and willing. It’s businesses that are slow to change.?

?

The ground reality is that B2B is more about relationships than B2C since you often cater to repeat customers. Therefore the lifetime value of B2B customers is much higher and businesses can leverage technology to enhance those relationships and provide a far better exceptional customer experience. A reliable B2B e-commerce platform provides them with reliable, transparent, and accurate information, regardless of the time and place.?

?

Cannibalising Revenue?

This point directly addresses the question that our hypothetical B2B business leader asked at the top. It’s obvious by now that one size does not fit all. Your B2B buyer might opt for multiple products across multiple channels. However, to achieve a successful balance of online and offline sales, it's essential to collaborate with existing retail partnerships rather than compete against them.?

?

As I’ve already established, self-service options are trending and buyers are increasingly looking at B2B providers with a clear idea of their requirements, preferred brands and even shortlisted vendors. Is it not better to shift the sale to the channel a customer prefers most, rather than lose business to a competitor??

?

E-commerce cross-selling and upselling engines provide a more complex and effective system that won't take away from sales you already have; it will keep those you were about to lose due to another, more convenient platform.?

?

Fear of the Unknown?

There is a great deal of complexity involved in developing the digital sales process for a B2B business. Requirements such as variable pricing, custom catalogues and user account management have to be considered so customers see the right products at the right prices when they need them.?

?

A move to a digital sales channel can be seen as a leap into the unknown. Businesses often forget that failing to adapt will mean failing to change their approach to best serve their customers. Digital commerce doesn’t just bring opportunities for better customer experience, wider reach and new customer data, it also helps them prepare for the unforeseen and unpredictable, so it's important to consider the risk of not adapting before rejecting change.?

“B2B leaders across the globe must sit up and pay attention or suffer the fate of companies like Sears.” - Brian Beck?

Digital commerce expert, Brian Beck , captures this risk perfectly in his book "Billion Dollar B2B E-commerce" using a case study on how Sears' failure to innovate in e-commerce led to its ultimate demise.?

A new age of B2B business is here.?

Today's B2B market demands a customer-centric platform that offers exceptional service and a customised buying experience. To be future-proof, investing in an e-commerce platform is a “must-have”.?

?

At Villvay, we understand that adding e-commerce to your B2B offerings can be a scary undertaking. Our team is full of experts that have helped B2B businesses navigate this space and transform their businesses.?

?

We would love to help your organisation do the same. ?

Reach out to us and let’s have a chat – www.villvay.com ?