B2B online sales, especially during the pandemic, have imperceptibly grown to such proportions that they have significantly exceeded the profits generated by B2C sales!
We're taking a closer look at this branch of e-commerce. If you want to know how to navigate it efficiently and, above all, what mistakes to avoid, we invite you to read on.
The data itself demonstrates the need to explore this topic. The profits generated by B2B e-commerce sales in the US alone are as follows:
At the same time, profits generated by B2B e-commerce sales in the US alone are as follows:
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As you can see, in 2016 alone, B2B e-commerce sales in the US were almost three times greater than B2C sales globally! According to the "B2B e-commerce NOW" report by the Chamber of Digital Economy:
Globally, B2B online sales totaled $7,72 trillion in 2021. For the first time, B2B sellers in the US preferred online sales over brick-and-mortar sales at the end of the year.
Many people are surprised by the fact that online sales of fasteners, electrical components, and other business products generate higher profits online than those selling shoes, clothes, consumer electronics, etc. However, many entrepreneurs recognize this fact and invest in online business sales platforms.
Over 90% of companies offering products, services, and business solutions plan to develop e-commerce. Already, 41% of companies operate in this market and consider their entry into this area a success, and one in four companies derives over 80% of their revenue from e-commerce.
Unfortunately, many companies make common mistakes when building their e-commerce platform. This results in suboptimal implementation and, subsequently, dissatisfied and lost customers.
6 Mistakes in B2B E-commerce
1. Choosing the wrong e-commerce software
Choosing the wrong e-commerce platform can practically derail your plans from the start. Some companies work with web design agencies unfamiliar with B2B sales and platforms tailored specifically for this channel.
Because of this, they build their store on poorly chosen software that isn't tailored to the company's needs. This often leads to the need for extensive tweaks and, over time, creates a platform that's very difficult and expensive to maintain.
In addition, for your business to grow and adapt to changing market dynamics, you need to be flexible. If your e-commerce platform is too closed and makes it difficult to introduce new integrations and features, it can be detrimental to your business.
Seamless integration with various third-party tools is essential, facilitating or replacing certain processes. You should be able to add various features that will help with customer engagement, such as helpdesk, live chat, notifications, social media integration, and any other APIs useful for improving business operations.
If a given platform requires too much time and expense to integrate with the right tools, you will be stuck with a solution that will significantly hinder your growth.
2. Lack of integration with other e-commerce business segments
B2B e-commerce shouldn't be viewed in isolation. Online orders in B2B are a growing share of overall sales, but offline transactions still represent a large segment of the market. When you integrate your online strategy with other systems, you'll be able to leverage the best of both online and offline sales.
Combining these two systems into one can reduce workload and save money. Integrating ERP and CRM systems with your online store will provide more accurate data and ensure your business runs more smoothly, increasing efficiency and profitability.
3. Lack of tailored payment options for B2B online orders
People making purchases for business purposes expect more payment methods than simply entering a credit card number.
Your B2B customers may want to issue a purchase order, access a selected form of credit, or pay by electronic check or standard check sent by mail.
Your job is to meet these and similar buyer expectations. In some cases, you'll need to create customer groups that allow you to offer appropriate payment options based on buyer type.
4. Same prices for all B2B customers
Unlike B2C, where prices are the same for all customers, B2B e-commerce solutions must be able to offer custom pricing for individual buyers.
Prices for different customers will vary depending on the size of the order, the duration of the business relationship, and the availability of the product versus the demand for it.
If your store doesn't have automated processes for offering custom pricing to individual customers, you may lose some customers or generate less profit.
On the other hand, if your B2B platform offers features that allow you to switch between wholesale and retail prices, or if prices are overridden based on the customer's IP, you have a much better chance of keeping your buyers happy.
5. Lack of comprehensive product information for B2B customers
Your store must have customer-friendly product descriptions, relevant titles, and specifications. Pre-made company descriptions may not be enough. High-quality product photos are also essential.
Detailed product information should help customers make informed purchasing decisions and include at least the following information:
- Model or part number.
- UPC, ISBN or other equivalent code.
- Pricing.
- Packaging type.
- Libra.
- Volume.
- Commodity class.
- Availability.
- Order processing time.
A B2B store should provide comprehensive product information so your customers don't have to call or email your sales team to get an answer.
6. Lack of user experience typical of B2C
B2C e-commerce has set a high bar for all online retailers.
Remember that the same person who places a wholesale order in your store buys clothes for themselves after work in high-quality online stores.
Therefore, all buyers expect a great user experience regardless of the device they use, fast order processing, competent assistance from customer service, etc.
B2B e-commerce – summary
B2B e-commerce is constantly evolving. However, to generate satisfactory profits in this industry, you must adapt to customer demands by designing a great platform. Avoid the mistakes mentioned here, and your success in the industry will surely increase.
Summary
The above article covers the following topics:
- The B2B e-commerce market is growing rapidly, surpassing the B2C sector, but success in this industry requires avoiding common implementation mistakes.
- Choosing inflexible software that is not tailored to B2B needs generates high costs and effectively hinders the company's development due to difficulties in integration with the necessary tools.
- Integrating B2B e-commerce with ERP and CRM systems enables the connection of online and offline sales, which increases operational efficiency and generates higher profits thanks to consistent data.
- Adapting various payment methods to the specific needs and groups of business customers is crucial to meeting the expectations of buyers in the B2B sector.
- An effective B2B platform should enable automatic offering of custom prices and discounts tailored to individual customer relationships and order volumes.
- Providing comprehensive product data, specifications, and high-quality images allows B2B customers to make their own purchasing decisions without having to contact the sales department.
- B2B customers expect the same high standard of service and ease of use as in the B2C sector, including responsiveness, speed of operation and efficient support.
