Offline marketing, cold calling, and paper-based transactions are a thing of the past. The present and future of B2B eCommerce are digital. According to Statista, B2B online transactions for the sale of goods and services are estimated to grow by 11% annually and are expected to reach over $3 billion by 2027.
Before the pandemic, B2B was very slow in adapting to the eCommerce world. However, the pandemic changed buyer expectations and acted as the catalyst for B2B evolution.
What is B2B eCommerce?
B2B eCommerce, or business-to-business eCommerce, refers to the purchase and sale of goods and services between businesses using online channels. It entails conducting transactions electronically rather than with sales representatives, such as through online marketplaces, websites, and other digital channels.
It’s a rapidly expanding industry that’s the future of B2B eCommerce, changing how firms engage and conduct business with one another. B2B eCommerce allows businesses to optimize their procurement and sales operations, minimize overhead expenses, and increase efficiency by automating formerly manual tasks (for example, with the assistance of sales reps). It also allows firms to reach a greater spectrum of potential consumers and suppliers, regardless of their location.
B2B eCommerce and other kinds of digital commerce have grown in popularity in recent years, and this trend is projected to continue as more firms implement digital technologies to improve their operations. Experts project that by 2027, B2B digital commerce will be valued $20.9 trillion, a astounding figure that demonstrates the importance of this industry.
Types of B2B eCommerce
Wholesale eCommerce
Companies frequently purchase products in large quantities for a wholesale price and then sell them at the retail value, and these items are typically purchased directly from the manufacturer or wholesaler. This business-to-business, wholesale, can also be defined as selling products to other businesses.
Retail sale transactions are quite different. Wholesale deals, for a fact, require much greater order quantities with a cheaper unit price. Both the producing and distributing ends benefit when going into a deal, having both sides win on that deal. The wholesalers now can reach more market through online business, quick sales, and also a greater reduction in operation costs when their business goes online.
Manufacturers & Distributors
In the case of B2B eCommerce, the producers make the finished products out of raw materials and prepare in order to sell them. Now, think about the car industry. Here, each and every automobile component is made by the producing company, such as a fuel pump or an engine. Now, they sell this component to the auto company, where they will fit these parts in making the full auto mobile for selling to its customers.
After passing through the hands of a manufacturer, there are two alternatives for the next step: If the manufacturer wants more control over the selling side of the business, they can sell straight to the final client. However, they still need to take care of order management, packing, and marketing.
On the other side, a manufacturer can create business with a distributor to get their products sold. Therefore, in this case, the distributor works closely with manufacturers to make people conscious of the products they manufacture, with the aim of selling more and shifting their product through the distribution channel.
B2B2C eCommerce
A business-to-business-to-consumer e-commerce hybrid business model typically comprises both B2B and B2C sides. This model helps reduce the middleman’s side; it allows direct communication between the business side of an enterprise and customers so that the business directly markets its products to its desired consumers.
This approach toward e-commerce allows a manufacturer, wholesalers, or another mediator to combine with the retail level to expand marketable sizes. For example, a grocery store would make a partnership with home delivery services, such as Uber Eats, where groceries allow its consumers the convenience of purchasing products online while staying in their homes.
B2B Marketplaces
B2B marketplaces refer to online marketplace websites that enable business-to-business transactions, where companies can sell and buy any type of item or service. Much like other B2C platforms such as Amazon and eBay, these marketplaces are tailored for commercial use. They do this by putting together many sellers and buyers in one place and giving business users a common venue for finding new suppliers, comparing costs, and doing business.
The major benefits of B2B marketplaces are wide selections. Businesses can easily access numerous products and services from various vendors, so it is easier to source what they want from such sources at relatively affordable prices. This marketplace often includes bulk order functionalities, automated procurement processes, and precise product definitions according to the specific needs of the B2B transactions.
Trends to Adopt to Make The Future of B2B eCommerce Bright
More B2B Companies to Invest
Every B2B business needs speed, customization, and flexibility. However, the complexity of big catalogs and various pricing methods make it difficult to offer new channels, personalize purchase experiences, and swiftly add new functions to existing platforms.
The good news is that headless commerce and composable capabilities make these aspirations much more attainable. How? Headless separates an eCommerce application’s front and back ends, giving businesses the ability to develop anything they desire. At a time when 63% of company buyers believe most customer experiences fall short of what they know is achievable, headless technology presents a promising answer.
With previous monolithic systems, development cycles were slow, and new commerce experiences may take months to launch. Teams would spend important time and money reconfiguring the front, and back ends whenever a new feature or upgrade was required. Headless provides flexibility and the ability to instantly experiment, update, and optimize your experiences.
Headless provides the best capacity for selling, quoting, and pricing nearly every product across all channels. According to one survey, 46% of IT teams have already deployed composable architecture, with another 43% planning to do so.
AI Would Increase Productivity
Nearly half (45%) of B2B firms are experimenting with AI, with 32% completely using it. Businesses are already experiencing significant benefits in employee productivity and operational efficiency. Thanks to generative AI technologies and automation, jobs that used to take days or weeks to accomplish now require only hours or minutes.
AI can also dramatically improve previously problematic areas of B2B digital transformation. For example, enormous amounts of technical, frequently incomplete product data (such as product descriptions, graphic renderings, and configurations) have traditionally necessitated massive investments in cleanup and continuing administration. That’s before you consider factors like localization for different geographical markets.
Given that 64% of B2B enterprises sell worldwide, businesses must improve efficiency in catalog content production and management. AI can significantly minimize the amount of manual labor required in these operations. With generative AI, businesses can now show more of their inventory digitally — and many will be able to expand into even more complex product material, such as visual buying experiences.
Consider the following scenario: an AI-augmented technician servicing agricultural equipment. This would allow you to find a replacement part using a visual 3D representation, dramatically saving servicing time. Customers can use the same visualizations to self-diagnose problems and automate the fix.
Sales and marketing teams may also use AI to develop personalized, dynamic messages and promotions for each customer based on their purchase and product search history, reorder frequency, and other factors. This saves your sales staff important time, allowing them to focus their efforts on more strategic duties that have a greater impact on your bottom line. To further enhance performance, businesses may consider Magento hosting solutions for optimized, scalable eCommerce operations. Commerce professionals who use AI say it saves them an average of 6.4 hours each week
More Flexibility in B2B Payments
B2B buyers desire more payment options, especially for large transactions. However, giving such flexible alternatives is quite complex. Here are some of the payment services that B2B buyers prefer:
- Pay on account
- Pay on loan
- Pay with multiple payment methods
- Pay using a parent account for multiple subsidiaries
According to Ryan Frere, EVP and GM of fintech business Flywire, “Flexible payment methods apply even more so to international customers who generally prefer to be billed and pay in their local currency.” Many organizations continue to bill their foreign customers in the biller’s native currency and then rely on international wire and bank transfers for payment, resulting in extra costs and complications for all parties involved.
Data Management Would be More Crucial
Because AI is fueled by data, B2B organizations must prioritize data quality and management in order to fully fulfill AI’s promise. And that’s not an easy task: 68% of B2Bs feel poor data integration and harmonization are barriers to AI adoption and maximization. However, the juice is worth the squeeze: Data accuracy is regarded by sales leaders as one of the most effective growth strategies.
Do you want to get your data in functioning order? It all begins with an audit to ensure correctness, completeness, consistency, timeliness, and relevance. To increase data quality, ensure that you have a data management platform that can consolidate and harmonize your data, as well as a connected commerce platform that allows you to put it all to use by providing exceptional shopping experiences.
These technologies will provide you with a more comprehensive perspective of client profiles, purchasing behavior, and company activities, ensuring that your teams have a common, accurate understanding of important information.
With a commerce platform linked to customer data, you can gather real-time insights about your customers and interact with them in ways that demonstrate you understand their specific requirements and preferences. This has never been more important, especially since 85% of company purchasers believe customer experiences should be improved, given all the data organizations collect.
Accurate, real-time, networked data is significant for the future of B2B eCommerce, particularly in the age of artificial intelligence.
Real-time Data to Make or Break in B2B
Advanced analytics and real-time data updates have gone from being a competitive advantage to being “required for survival” for most manufacturers and distributors, who rely on these insights to manage inventory levels, forecast, and achieve corporate profitability.
These technologies represent the lifeblood of traditional sales channels, but offering real-time visibility for online selling remains a difficulty for many. To take the next step, many mid-sized B2B companies will examine digital commerce solutions in 2024 that will allow them to sell online with the same real-time accuracy as offline.
Digitize Complex B2B Business Processes
There is still a lack of understanding regarding how the complexities of B2B sales and procedures fit into a digital commerce framework. Fortunately, there is an increase in technologies that can help translate complexity online.
Historically, manufacturers of automotive components and medical supplies have struggled to sell online due to the large number of varieties and built-for-purpose functionalities of their products. The complexity of the transactions, along with the financial consequences of doing it wrong, made digitization either too hazardous or not worth the effort. However, things are changing quickly as solution providers and platforms compete to enable sophisticated, complex online sales.
Centralize Composable Commerce
Composable commerce has been popular in the B2B market for several years. Composable commerce is a development strategy that involves selecting high-performing commerce elements and combining or “composing” them to produce a bespoke solution that meets specific business needs. Businesses have recognized the benefits of its flexibility and scalability, which correspond with the dynamic nature of B2B operations.
However, there has been considerable discussion recently regarding where composable trade is confined. Let’s be honest: having hundreds of different applications communicating and competing with one another isn’t optimized.
Personalization and Omnichannel Experience
Today, 63% of B2B buyers believe most client interactions fall short of their expectations. Buyers want you to adapt to their specific requirements and preferences, just as you do for consumers.
This increasingly implies being able to interact and transact over any channel while receiving the same quality of service. Whether buyers contact with your company via your website or ordering portal, video conferencing with sales representatives, or in-person, the experience must be consistent.
79 percent of customers want consistent interactions across departments and platforms. In the B2B world, this involves ensuring that your customers receive consistent messages across all channels, whether it’s from dealers, self-service portals, or your website. B2B purchasers expect the same smooth experience that they have grown accustomed to as consumers.
Mobile commerce is extremely important for B2B enterprises, especially as more buyers use smartphones for business purposes. Mobile-responsive websites and applications are the future of B2B eCommerce. Your B2B commerce platform should be capable of providing excellent customer experiences across all channels.
