GOb2b Blogs

Optimising ROI for your B2B eCommerce solution

As eCommerce continues to grow, sellers are facing the challenge of managing larger inventories and expanding supply chains, particularly those retailers dealing with both B2B and B2C customers. Lack of visibility and communication across these supply chains is becoming a significant issue and can result in increasing costs and compromised customer service.

Recent research on the varied growth rates of b2b eCommerce adoption by distributor and wholesale companies throws up some interesting data. Firstly, it shows that around 65% of these businesses have an online sales channel – and around 40% of their sales were transacted digitally. But the study also shows that the proportion of actual eCommerce sales varies dramatically between companies, with nearly 80% of distributors and wholesalers claiming that eCommerce accounted for less than 25% of total sales.

Research shows that nearly 70% of millennials prefer buying online to bricks and mortar shopping. So it’s hardly surprising that as millenials increasingly find themselves in purchase decision-making positions within b2b companies, their preferences and expectations for the digital experience are impacting on the actions of sellers.

When you decide to switch to b2b eCommerce, as well as creating a website there are a number of other factors you need to consider and address before you’re ready to make the move. Think about the changes you’ll need to make to operational systems and process to accommodate an automated sales procedure where customers can access product information, real-time stock availability, and place orders 24/7.

Business-to-business eCommerce platforms have to offer much more than just automated ordering. As well as facilitating transactions and making it as easy as possible for buyers to complete low ticket, often repetitive purchases, eCommerce solutions must also promote the development of buyer / seller relationships. Such relationships are vital to supporting more complex, higher value transactions with long-term customers.

Launched in 2015, Amazon Business is the b2b version of the familiar online consumer marketplace and now boasts over a million customer accounts, more than 45,000 active sellers, and over 10 million products for sale. This rapid growth proves that Amazon Business is satisfying the needs of business procurement teams, but many companies are still unsure whether they’re better off focusing their sales efforts on their own eCommerce websites. If you’re thinking about buying or selling through Amazon Business, here are a few of the upsides and downsides to consider.

Data is the currency of competitive advantage for business in the digital age, and its importance is only going to increase in the future. But as more businesses realise the value in capturing, storing and processing customer data, people are increasingly concerned with how their personal details are being stored and used. In Europe, this has led to the introduction of the General Data Protection Regulation, or GDPR. And if you do business with anyone who is a citizen of the EU, after 25 May 2018, you’ll need to ensure that you are GDPR compliant – or face a serious penalty.

The manufacturing industry has seen significant disruption over the last ten years or so, especially in the way companies manage their approach to trading – from the move to customer self-service, to the evolving role of distributors in the sales ecosystem. Such disruptors are the direct result of digital transformation in the manufacturing sector and the accompanying growth in b2b eCommerce. However, in our experience, these disruptors are better viewed as business facilitators that need to be integrated into your business model to maximise their value. Let’s take a closer look at some of the challenges that come with business disruptors and how we can turn them into business opportunities.