Companies that invest in B2B commerce can maximize potential revenue and boost their competitive advantage.
B2B commerce, or business-to-business electronic commerce, is not just another sales channel—it’s a revolutionary way of doing business that provides significant value.
Companies that create intuitive, informative, and elegant B2B shopping experiences enable their purchasers to transact business anywhere and at any time. To capitalize on B2B commerce, companies should invest in modern platforms that can provide B2C-like shopping experiences combined with the unique features that B2B buyers require.
What is B2B Commerce?
B2B e-commerce is the sale of goods or services via online transactions between businesses.
The online commerce and digital technology evolution has transformed B2B transactions by streamlining many traditional, manual processes. Online platforms, electronic payment systems, digital documentation, and automated supply chain management have made B2B commerce more efficient and accessible, reducing the need for extensive paper-based transactions and physical interactions.
B2B e-commerce has grown exponentially since the start of the COVID-19 pandemic in 2020. Companies had to adapt rapidly to physical realities and changing customer expectations, and those that adjusted effectively have been rewarded with increased market share and revenue. For B2B companies, online commerce has emerged as one of the top revenue channels.1 Notably, the organizations the provide purchasers with the best omnichannel experiences have the greatest market share.
As of late 2021, e-commerce eclipsed in-person selling as a B2B sales channel and is preferred by most buyers for its effectiveness and convenience. Increased adoption of B2B e-commerce provides similar benefits for sellers, including increased efficiency, cost savings, 24/7 accessibility, broader market reach, improved product and service visibility, streamlined inventory management, and simplified payment processing.
For businesses that have not yet made the leap, there’s still time to benefit from investments in B2B online commerce and integrate it with existing channels.
Benefits of B2B Commerce
Now more than ever, companies are investing in the B2B online sales channel to retain existing customers and attract new ones. When executed optimally, companies will see significant returns from their B2B sites:
- Incremental Revenue Generation: Support larger order sizes and higher transaction values compared to B2C.
- Efficiency and Cost Savings: Streamline the procurement process for businesses and reduce the need for manual and time-consuming tasks.
- Expand Customer Reach: Empower businesses to expand their reach and access a global customer base.
- Data and Analytics: Collect valuable data on customer behavior, preferences, and purchasing patterns. This data can be analyzed to make informed business decisions, optimize pricing, and tailor marketing efforts.
- Integration with ERP Systems: Integrate seamlessly with a company’s Enterprise Resource Planning (ERP) system. This integration streamlines business processes, reduces errors, and enhances data accuracy.
- Scalability: Easily scale to accommodate growth. As a business expands, its e-commerce platform can grow alongside it to handle increased transaction volumes and complexity.
- Flexibility and agility: Adapt to changing customer behaviors. The way businesses purchase products and services is evolving, with an increasing preference for online transactions.
B2B e-commerce provides sellers with revenue opportunities, valuable data insights, and a competitive advantage in a crowded marketplace. This critical channel is essential to address changing customer preferences and is a key component of modern B2B business operations.
How Can DMI Help in Your B2B Journey?
Due to challenges with system integration, platform selection, and organizational change, the B2B journey can be frustrating for organizations if not managed well.
The DMI team has vast experience helping companies define necessary B2B processes, identify key features needed, and implement online commerce capabilities for different types of customers in the B2B space. By leveraging our expertise and partnership network, businesses can ensure that their B2B solutions are well-designed, secure, efficient, and aligned with their strategic goals, ultimately leading to improved operational efficiency and competitive advantage in the B2B market.
To learn more about our solution offering or case studies click here.
References:
1 – Manu Bangia, Liz Harrison, Candace Lun Plotkin, and Kate Piwonski, January 26, 2022. Busting the five biggest B2B e-commerce myths, McKinsey https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/busting-the-five-biggest-b2b-e-commerce-myths
