Career Guide: Moving from DTC eCommerce to B2B eCommerce

In this guide, designed explicitly for B2C workers, we will explore the key features a robust B2B-first digital commerce platform should offer and how B2B companies have unique needs. Whether you are a DTC or B2C eCommerce professional considering transitioning to B2B eCommerce, this concise list will provide valuable insights into the fundamental differences between these two domains.

As B2C executives, it's crucial to recognize the distinct characteristics and complexities of B2B eCommerce compared to its B2C counterpart. While the evolution of eCommerce initially revolved around B2C, many digital commerce platforms aimed at B2C have attempted to adapt to B2B use cases. However, significant gaps still exist in these platforms.

Buyers

? ERP-linked user profiles: User profiles are linked to accounts in ERPs allowing them to access the account's contracted pricing, invoices, and order history.

? Role-based user experience: Different personas in the buying center have personalized experiences and permissions based on their roles and responsibilities. (e.g., purchaser, approver, etc.) In B2B, the purchaser of the product might not be the ultimate user of the product.

? Shareable content: Some B2B eCommerce platforms allow favorite lists and shopping carts to be shared by same-account users or between the customer and their account manager.

Products & Catalogs

? Account-specific catalogs: Each buyer sees a tailored product catalog based on their account and purchasing requirements.

? Complex products: While some DTC products can be complicated, B2B can range from the very simple (i.e., a metal screw) to complex machinery with various sub-systems. Due to the complexity, the sale cycles can be much longer, require many rounds of approvals, mandate bids, etc. CPQ (Configure Price Quote) is an excellent way to allow digital commerce channels to handle this process wholly automated or perhaps as a lead generation capability.

? Alternative products: In B2B, some products may become discontinued or obsoleted. However, the buyer may need a new product with the exact specifications or near the same specifications to continue operations. Thus, many B2B companies have interchange and other replacement products noted in their systems.

Ordering

? Procurement systems: Large customers will utilize an Enterprise Resource Planning (ERP) system. They may require their workers to procure supplies and products through a workflow that is part of the ERP. Sometimes, the customer's ERP will submit purchase orders directly to the supplier's ERP. We call this EDI (Electronic Data Interchange.) A modern approach for customers with ERP workflows is to 'punchout' of the ERP through a browser window, access a supplier's webstore to shop and build a cart, and then have the items in the cart returned to the ERP. The purchase order can then be submitted through EDI, thus not disrupting the customer's approval/procurement process yet allowing the customers an improved shopping experience.

? Buyer and seller workflows: Workflows streamline the ordering process, facilitating information flow and approvals within the buying center.

? Easy ordering and reordering: Buyers can upload Excel or CSV order sheets and enjoy quick reordering options.

? Cart accommodating many items per order: The cart can handle B2B orders with a high volume of items.

? Multiple payment methods: The platform supports various payment methods like credit lines, purchase orders, ACH, and online payments.

? Advanced shipping functionality: Real-time order tracking and complex shipping options are provided, such as order splitting and multiple delivery locations.

Pricing

? Contacted or negotiated price: The platform supports customer-specific price lists, including negotiated prices and complex discount logic.

? Less promotional-based: Promotions in B2C and B2B eCommerce show distinct differences. B2C is highly driven by promotional activities, particularly during holidays like Christmas, Black Friday, and Cyber Monday, which create significant shopping periods. In contrast, B2B eCommerce relies less on pricing promotions as it is often based on contract pricing. B2B buyers are typically targeted with fewer pricing promotions. Moreover, specific B2B industries have restrictions on promotions and incentives, including the prohibition of gifts. This highlights the divergent promotional strategies employed in B2C and B2B eCommerce, with B2C emphasizing seasonal and pricing-driven promotions, while B2B focuses more on long-term contracts and specialized business relationships.

Sales & Marketing

? Sales Cycles: The B2C and B2B eCommerce sales cycles differ significantly in complexity, duration, and decision-making. B2C sales cycles are shorter and straightforward, driven by immediate needs and individual preferences. B2B sales cycles are longer, involving multiple stages and stakeholders like purchasing managers and decision-makers. B2B buyers conduct extensive research, negotiations, and evaluations to ensure suitability, quality, and cost-effectiveness. Their decision-making focuses on relationships, specific requirements, and long-term goals. Understanding these differences is crucial for businesses to adapt and provide tailored experiences in B2B sales cycles.

? Account manager: In most B2B industries, sales representatives establish and nurture customer relationships. These relationships encompass various activities, ranging from consultations to administrative tasks. The eCommerce channel can ideally support customers in becoming more self-sufficient and handling their administrative duties. While the sales structure may differ across companies, a typical arrangement involves a dedicated account manager overseeing a customer account. The account manager could be field-based, visit customers in person, or work from a central location, such as an inside sales team. A branch office may employ them, focus on large bid-based accounts like GPOs, governments, schools, etc., or manage national accounts that span the entire country. The crucial aspect here is that B2B eCommerce channels should consider the traditional concept of account ownership.

? Quotes/Bids: Some industries or customers may require each order to start as a request for quote (RFQs). The processing of RFQs can be automated, semi-automated, or manual. The process of 'flipping' a quote to an order can happen offline or online (best case.)

Conclusion

If you are venturing into B2B eCommerce after transitioning from B2C, please share any questions or inquiries in the comments below. Additionally, I highly recommend attending the "B2B Online Conference," which takes place twice a year in the Spring and Fall and centers around eCommerce for distributors and manufacturers. As a member of the board of advisors, each conference is dedicated to delivering highly informative content packed with practical tactics and strategies that you can readily apply within your company. Make the most of this opportunity to gather valuable insights and knowledge to enhance your B2B eCommerce endeavors.