The Rise and Success of B2B Ecommerce
B2B ecommerce is growing faster than ever and it is expected that B2B e-commerce sales will reach to $1.1 trillion by 2021. B2B ecommerce is an important element for growth and it is reinventing business for a digital-first-economy. Less than 50% of B2B companies have an e-commerce site, but 70% of those without a B2B e-commerce site are expected to have one within 2 years. Please contact PROS Ecommerce consulting to develop & design B2B ecommerce platform for your business or call us today at 619.567.9322.
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B2B Ecommerce Statistics (Source Bigcommerce.com) :
- 41% expect more than 25% rise in B2B online sales in 2018
- 80% accept payments on their ecommerce website
- 72% accept payments over phone
- 77% accept payments over email
- 23% accept payments via fax
- 94% accept transactions through credit card
- 53% accept transactions through terms
- 51% accept transactions through checks
- 50% accepting transactions through POs
- 26% accept transactions through digital wallets like Apple Pay and Amazon Pay
- 48% have been selling online for more than 5 years
- 78% have been selling online for more than 2 years
- 63% say word of mouth referrals are best for new prospects
- 47% say price is important to closing the deal
- 53% say reputation is important to closing the deal
- 71% say UI/UX is highly important in converting customers on site
- 47% say various payment options like PayU, PayPal, Authorize.Net, Amazon Payments etc. are important to converting customers
- 33% say price transparency is a top fear for not selling online more aggressively
Over the past two decades B2B ecommerce industry has been developing and it is expected to be twice the value of the B2C global market by 2020. Considering this likelihood, the shifting nature of business buyers and to ensure profitability for the future, it is necessary that businesses jump on the B2B eCommerce bandwagon.
B2B companies sell online in order to increase sales, to sell direct to consumers and to sell direct to retailers, dealers, wholesalers and distributors. “Manufacturers and retailers that are still asking whether to be online or not are asking the wrong question. At this point, it should be ‘How quickly can I expand online?”, opines Sonesh shah, VP of brand marketing and digital, North American region of Robert Bosch Power Tool Corp.
Over the last few years more than half of the clients of the firms who have been actively investing in their eCommerce strategies, carry out their purchases online. A leading Australasian eCommerce solution company – Solutionists report that they invested a mere 2.5% in the eCommerce strategy of their top 10 most profitable web stores and got a 53% rise in turnover.
By 2021, business-to-business (B2B) ecommerce transactions would reach $1.2 trillion as estimated by the report from Forrester Research in 2017 which accounts for over 13% of all B2B sales within the United States. Frost & Sullivan claims that B2B ecommerce will hit $6.6 trillion by 2020. Due to the changing B2B buyer demographic and the success of Amazon Business, B2B brands are looking to digital means to boost sales.
About half of B2B buyers are millennial which almost doubles the number from 2012. A process of business sales should change with the change in the “typical” B2B buyer. BigCommerce carried out a survey of over 500 international merchants who were relying on other businesses (B2B) for at least part of their revenue. It was found that ecommerce is a driving force, not nebulous for B2B. Merchants have the option of taking advantage of that growing opportunity or they are at risk being left behind.
Fax orders are still accepted by almost 23% of B2B retailers with an ecommerce channel. However, that figure is much lower compared to the 3 most popular payment arenas: website: 80%, email: 77%, phone: 72%. The rise of mobile apps and marketplaces like Amazon is a clear sign that B2B retailers are rapidly shifting from nascent ecommerce channel experimentation to full omnichannel sales approaches. B2B retailers are not as new to online sales. About 78% of the B2B retailers have been selling online for longer than 5 years or at least 2 years.
Brands that are not selling through a dedicated website are increasingly preparing to do so in the next 24 months. Like B2C retailers, numerous acquisition channels are used by B2B retailers. 63% of respondents find prospects through recommendation even though word of mouth and referrals are also important to the B2B segment. Social media has an important role to highlight the shift in B2B buyer behavior and its move toward a more B2C behavior path. To hit their “ease of online purchase” goals, B2B businesses need some of the following or all of them: credit limits, quoting, price list, purchase orders, quick order forms, purchasing approvals, financing and bulk pricing. 71% of B2B buyers focus mainly on easy site navigation to make sure that their websites are converting all B2B buying prospects that land on site. In the 2018 B2B ecommerce report executive, 41 % of B2B retailers expect B2B online sales to increase more than 25% by the end of the year. To drive net new customer acquisition, decrease manual back off input and work, retain happier customers than ever before, multi-million dollar B2B businesses use ecommerce.
Your CRM system, your planning system, accounting and inventory management system should be glued firmly together by your B2B ecommerce system. Qualities like scalable, easy to alter and flexible B2B ecommerce system make it easier for the company to prosper and expand into new markets where multiple language interfaces are needed.
Choose any B2B ecommerce system as long as that is adaptable to multiple devices. Buyers expect a flawless, professional online process which can involve switching from one device to another but experiencing the same efficient website with item lists and ordering details. Therefore it is advantageous to make sure that your systems are flexible from the very beginning even if you do not control a huge proportion of the market yet.
For businesses to delve into the internet arena and establish their online presence, B2B ecommerce is crucial to reach the customers globally. If it is done correctly, it proves to be a powerful tool that guarantees large returns. You have to improve the customer experience and increase efficiency of the ordering process and for that your systems should all operate and agree with each other.
Zahoor Bhat has over 10+ years of experience as an online editor and media manager. He has worked with major online news and content sites as a media manager. He is well versed with major content management systems and web platforms such as WordPress and social media networks including Facebook, Twitter, Youtube, Google Business, Yelp, Instagram & Linkedin. He is an expert in content creation, proofreading and finally making it live. Being a social media expert, he is able to make relations with social media influencers and make sure to generate leads and grow business via different social media platforms.