A B2B eCommerce Overview
It may sound trite, but B2B eCommerce is the process of using the internet to sell goods and services to customers.
B2Bs benefit from eCommerce
If you’re a B2B manufacturing or distribution executive and thought eCommerce was only for customer-facing retailers, you’d be mistaken. Fortunately, you should be pleased to know that your business can also benefit from an eCommerce strategy.
That’s good news because it means you have an opportunity to create a rapid-scaling and efficient revenue stream that’s profitable and provides a great buying experience for your customers.
Isn’t that the goal — to keep your customers in mind to serve them best?
Why now?
Simply stated: the world is continuing to change, it’s changing faster, and it’s changing whether you do or not. Over 20 years ago, people thought the internet was a fad. Some still do.
If you “missed the call” on the internet the first time, you have an opportunity to make up for it now. Unfortunately, you don’t always get second chances.
This time with eCommerce is similar yet different to the early days of the internet.
It’s similar in that everything seems to be moving fast, is new, confusing, and unproven. It’s a complex world and you need to be confident there’s an ROI.
It’s different in that eCommerce as a method for selling things over the internet is a proven strategy. The technologies are stable, the examples of success are endless, and (most importantly) people have embraced it — thanks in large part to Amazon conditioning hundreds of millions of Americans.
Because customers expect more through their retail conditioning, your business can ride this wave, too.
Think about this…Amazon captures roughly 50% of online sales in America.
“Nearly 50% of online sales are on Amazon which means it’s very likely you and your customers have bought something online.”
“Tried and true is better than flashy and new” is a quaint expression that may make you feel good saying it, but customers don’t buy it. Customers drive change because businesses are meant to serve their needs.
The demand for B2B eCommerce is increasing in nearly every industry because people’s personal eCommerce expectations are carrying over to how they buy products for work.
Since B2B eCommerce does vary from B2C eCommerce, sites must provide a personalized experience in addition to easy access to a person who can help, if and when needed. Essentially, a B2B eCommerce site needs to accomplish everything a human could do over the phone in just a few clicks, but offering the human touch as an option.
This balancing act can be challenging causing many manufacturing and distributing executives to freeze. It’s not a good course of action to maintain for long.
People prefer to buy online
Consumers and businesses today will buy almost anything online and the data says they prefer it.
According to Forrester Research, 74% of B2B buyers prefer the convenience of an online purchase compared to buying from a sales representative. The report, appropriately named “The Death of a B2B Salesman”, says that 93% prefer to buy online when they know what they want. That is powerful information executives should seriously ponder.
The expectation isn’t going away, it’s growing.
Time waits for no one and Millennials (aka Generation Y) will replace their Gen X predecessors the same way Gen X’ers replace Baby Boomers in decision-making roles.
Millennials were exposed to technology earlier in their life compared to other generations and these “digital natives” have high standards for online experiences. Like most reasonable people, they will quickly move on if their needs aren’t met. That creates an opportunity for you to win new customers when your competition fails to adapt.
Lastly, B2B eCommerce is set to reach $1.1 trillion by 2020. Despite this, only 22% of B2B businesses in the U.S. had eCommerce capabilities in 2014.
With such large slices of the eCommerce pie waiting to be claimed, will it be you or someone else?
The B2B to B2C connection
B2B and B2C employ different strategies and solutions but consumers have the same expectations.
Similar to adding a direct-to-consumer (DTC) channel, going B2B online requires a shift in mentality that embraces the notion that there are other ways to sell, they benefit the business, and they benefit the customer. In this regard, learning from B2C counterparts is essential. If you believe the buyer’s experience is important, you must make it a priority.
A report of Forrester Research’s findings shows what B2B buyers really want:
- The ability to look up product information across any channel (74%)
- Self-service access to accounts and orders (72%)
- Online scheduled deliveries (64%)
The new wave of B2B buyers thinks differently because of their exposure to technology. Do you believe “time is money”? Buyers do. They want access, convenience, and data to make a purchasing process simpler and more streamlined.
Personal relationships still matter. However, the way they start and are maintained is different and will continue to evolve through new technologies. Having real people available to interact with the customer will be more important than relying on a person to repeat a routine task, like paperwork, that a computer can do better, faster, and error-free. You want people available for creative problem solving, not routine work that is a low-value use of time and money.
Doug Root, CEO of Atlanta Light Bulbs says it perfectly:
“The modern millennial B2B buyer doesn’t want to have to pick up a phone to order. Today’s B2B buyers just want to get things done — right then and there.”
The keywords are “have to.” If needed, people will appreciate talking with someone, but they don’t want to be forced if it’s unnecessary.
A study conducted by Heinz and SnapApp shows that millennial B2B buyers are already here and are making important purchasing decisions.
- 41% of millennials are either making purchasing decisions or influencing them
- 38% are involved in pre-purchase research
- 82% are part of a company’s buying committee
Goals and challenges of Digital Transformation
Let’s face it, investing in a comprehensive B2B eCommerce seems intimidating especially if you’ve never done it before. But if you’re a CEO, CFO, COO, CIO, or CMO, you should be asking the most important questions:
- “Will a digital transformation benefit our people and our customers?”
- “Will we be more competitive because of it?”
- “Do the numbers make sense and is the ROI attractive?”
- “What are the risks if we don’t adopt a B2B eCommerce strategy?”
Businesses evolving their legacy systems need a sound strategy. Much of the battle comes down to system integration and data flow.
Creating a single source of truth (SSOT) system means ensuring all business channels operate off of the same information. B2B businesses may need to upgrade the IT infrastructure and integrate existing data systems, but these investments will pay dividends long into the future. For one, you’ll be able to make better, data-driven decisions and significantly faster than today.
Other necessities of a B2B eCommerce platform include:
- Culture — a company culture that supports the change
- Commitment — a commitment to evolving your business
- A plan — a sound strategic plan that’s been vetted by experts
- The technology — Robust technology infrastructure whether on-site or in the cloud
- The team — a capable team to execute the plan
- Processes — scalable processes that enable you to improve over time
B2B eCommerce benefits
After the growing pains subside, and the digital transformation is complete, businesses may reap the benefits in the eCommerce promised land. This is where orders become simpler, easier to track, and more profitable.
Now, online sales happen automatically. Quotes are algorithmically made to fit each customer’s buying habits. Employees don’t need to make lengthy phone or email conversations to create orders. Customers can track the status of their order at their leisure. Buyers experience a targeted, personalized version of the site that knows who they are and what they need.
Furthermore, the eCommerce channel acts as an amazing digital marketing tool. As regular customers use the site, and new ones discover it, brand visibility increases. This new discoverability creates an influx of inbound sales as the brand reaches new customers passively. The site becomes a scalable and stable platform that fosters growth and gives buyers the best experience possible.
Final Thoughts
The world of eCommerce offers many opportunities to improve their businesses over the short- and long-term. The first step curious executives can take is talking with people who’ve developed and executed successful eCommerce strategies and digital transformations.
If you would like to learn more or talk with us, contact us at hello@friedlandenterprises.com or 1-925-983-5745 or visit our website www.friedlandenterprises.com.
