Commerce is a tradition of how businesses sell, manage, and grow. eCommerce is how businesses use digital transactions inherently with their services or products. And when it comes to dealing with companies, it is called B2B eCommerce. It is now reshaping how businesses must function in the digital age. B2B eCommerce is not about finding the best deal to hunt for, just like B2C, but about user interactions, operational efficiency, integrations, and omnichannel support.
B2B eCommerce has evolved through the years, starting to be implemented following eCommerce platforms in 2000. To expand the global reach, minimize costs, and improve vendor management and user experience, B2B e-commerce is now in full swing! Hitting the right time for an eCommerce website development. The rise of mobile technology, Applications, and the advancement of AI tools, IOT, and Crypto has pushed and supported B2B businesses moving online.
Today, according to the MasterB2B 2024 State of B2B eCommerce report, 62% of B2B buyers prefer to purchase their stocks online because it’s quick and hassle-free. And now, you know that it is about getting every aspect of the business at your fingertip; B2B e-commerce is a vast opportunity for any business that wants to tap the globe or have robust solutions for their online business. In this article, we will drive you through every aspect of what is B2B eCommerce. So, my dear, put that phone aside for your next purchase and let's focus.
Table of Contents
What is B2B eCommerce?
B2B eCommerce or Business-to-Business eCommerce is online selling of goods between businesses. Unlike B2C, where businesses trade products or services to consumers, B2B eCommerce is all about doing business with distributors, wholesalers, retailers, and manufacturers. Comparing B2C, B2B eCommerce is all about complex processes, high values, and larger orders compared to B2C. B2B eCommerce facilitates product purchases and order processing, streamlines supply chains and other business operations with automation and increases business efficiency. Not only dealing with the websites as a selling point, but holding a complex architecture of multiple systems and eCommerce platform. For instance, ERP is been an integral part of any B2B businesses for years, taking everything online, mate, count integrating complex ERP soltuins with your eCommerce platform.
Features that any B2B eCommerce model must focus on
- Bulk Order: B2B is always about big orders with large quantities, and your eCommerce must support this feature.
- Catalog and Pricing: As we all know, businesses quote their products and solutions based on their relations, past purchases, negotiations, order volumes, etc.
- Account Management: When it comes to B2B, multiple people are involved in the decision-making process, and so do operations such as accounting, order tracking, custom catalogs, etc.
- Payment Integration Solutions: Payment integrations are intricate and include different attributes, such as pay terms, purchase orders, leasing, and more. Make sure your B2B eCommerce platform provides the solution to cater to this.
- Third-Party Integration Capabilities: B2B involves every business functionality in acquiring user information and providing shoppers with an omnichannel experience with the right amount of information and data for both parties. This includes successfully integrating your B2B eCommerce website with ERP, CRM, accounting, Inventory, or business-specific systems.
By now, you must have learned that the purpose of moving online for B2B is to improve the operational efficiency and effectiveness of overall business solutions across the globe! It helps companies and brands to reduce costs, automate processes, create more business channels, and tap the vast geography.
What is the difference between B2B and B2C eCommerce?
There's a fragile line differentiating both, yet counting on solutions and business perspective, it's Huge! For B2B, businesses are involved as sellers and vendors compared to B2C, as the name suggests. However, we've put the touchpoints to be compared for both eCommerce solutions. See the detailed table below:
| Aspect | B2B eCommerce | B2C eCommerce |
|---|---|---|
| Target Audience | Businesses purchasing goods/services for operational or resale purposes. | Individual consumers purchasing for personal use. |
| Purchasing Motivation | Business needs, ROI, and operational efficiency. | Personal desires, convenience, and emotional factors. |
| Decision-Makers | Multiple stakeholders, such as procurement teams or department heads. | Single individual, often the end-user. |
| Relationship Duration | Long-term, ongoing relationships with repeat orders and loyalty. | Short-term or one-time relationships focused on quick transactions. |
| Order Volume | Larger order volumes with bulk purchases and recurring orders. | Smaller order volumes with single or occasional purchases. |
| Pricing Model | Tiered pricing, negotiated contracts, and customized quotes. | Fixed pricing with occasional discounts or promotions. |
| Prices | Often dynamic, based on negotiated contracts or tiered pricing. | Fixed or promotional pricing, visible upfront. |
| Checkout Process | Complex with features like multi-user accounts, purchase approvals, and credit terms. | Simple and streamlined, often focused on quick and easy purchases. |
| Payment Options | Credit accounts, invoicing, purchase orders, and corporate cards. | Debit/credit cards, digital wallets, BNPL (Buy Now Pay Later), and direct bank transfers. |
| Payment Terms | Flexible with options like net 30/60/90 days, or custom terms based on agreements. | Immediate payment at checkout or via short-term financing options. |
| Customer Relationship | Long-term relationships with account-based personalization and support. | Short-term or one-time relationships with focus on engaging through promotions and offers. |
| Catalog Management | Extensive catalogs with advanced filtering for technical specs, bulk SKUs, and detailed attributes. | Simplified catalogs with emphasis on visuals, descriptions, and user-friendly navigation. |
| Marketing Strategies | Relationship-driven (email marketing, account-based marketing, direct sales). | Emotion-driven (social media, influencer marketing, advertisements). |
| Platform Requirements | Advanced features like quote management, B2B portals, ERP integration, and multi-location inventory. | Easy-to-use platforms with mobile responsiveness and personalization capabilities. |
| Support Requirements | Dedicated account managers, training, and 24/7 support for ongoing relationships. | Standard customer service with live chat, email, and FAQ support. |
| Purchase Decision | Rational and data-driven; involves multiple stakeholders. | Emotional and impulse-driven; often a single decision-maker. |
| Shipping Needs | Scheduled deliveries, bulk shipping, or custom logistics. | Standard shipping options with faster and flexible delivery. |
| Shipping Terms | Often pre-negotiated, including specific lead times, freight options, and bulk handling. | Standard terms with predictable shipping costs and timeframes. |
| Regulatory Compliance | Compliance with industry regulations (e.g., tax exemptions, certifications). | Basic compliance with consumer laws and data privacy. |
Types of B2B eCommerce
B2B involves business-to-business for trading products and services, yet it differs based on the nature of the businesses and consumers they deal with. So let's see what are the type of B2B eCommerce as below:
B2B2C (Business-to-business-to-customer)
This model works as a business intermediary between manufacturers/vendors and consumers. Virtual storefronts are being set up for shoppers to shop from manufacturers or suppliers. Think of Amazon, which manages vendors and customers, both intermediaries! This model is not how traditional B2B works and helps manufacturers tap larger markets without customer-facing roles and support seamless transactions.
Wholesale eCommerce
It works similarly to offline businesses, focusing on bulk purchases to resell goods/services. You all know about Alibaba, which is the biggest wholesale eCommerce model. One primary role in such a B2B eCommerce model is pricing and profitability. As we know, retailers seek bulk purchases with lower prices to meet the demands of their customers and get profitable margins. This also includes robust inventory management, the huge quantity of products compared to a few quantities.
Distributors
Distributors are intermediates for manufacturers to tap the vast market of buyers. A strong supply chain and inventory management are crucial in this case. Distributors help businesses purchase various products from manufacturers on a single eCommerce platform. The only noticeable difference between wholesalers and distributors is their relations. Wholesalers have strong ties with retailers, whereas, in the case of distributors, they manage the relations with manufacturers.
Manufacturers
A platform where manufacturers can manage their business by selling finished goods to buyers. Buyers are varied as customers, retailers, or wholesalers. The B2B eCommerce enables manufacturers to manage their own robust supply chains with direct B2B transactions.
In addition to the main characteristics of B2B eCommerce models, several variants are worth noting. One is the vertical B2B model, where products from a single industry are sold, such as in the automotive or clothing markets. Another is the horizontal marketplace, which offers a diverse range of products from different industries. More complex models include auction platforms, where businesses facilitate reliable and transparent bidding processes.
Why B2B eCommerce Matters
By now, B2B eCommerce is on a complete overhaul, we can say! Businesses are approaching B2B consultants for RFPs, requirement discoveries, and whatnot!
According to the latest numbers e-commerce marketplace sales is 224B USD in the US marketplaces. Asia is leading the GMV, followed by the US. As businesses embrace digital transformation, the B2B eCommerce market is expanding steadily. This growth is driven by evolving customer expectations, technological advancements, and the need for scalable solutions.
For businesses, adopting a robust B2B eCommerce platform ensures:
- Enhanced Efficiency:Consider how to add automation to your customer handling process and reduce the back and forth over a call, i.e., Automating order management, inventory tracking, and customer interactions.
- Scalability:Going global or having international buyers worry-free without any headache of time zones. It can be like expanding market reach and managing a growing customer base seamlessly.
- Customer Satisfaction:There might be a time when it will take a lot of work to manage customer relationships over a certain time. Rewarding them with other eCommerce tactics could lead to satisfaction. Offering personalized experiences and self-service options that align with modern buyer expectations.
- Cost Reduction:Of course, setting up the B2B eCommerce costs high upfront—eventually, the advantages and Streamlining operations to minimize overhead costs associated with traditional sales processes.
Challenges in B2B eCommerce and How to Overcome Them
Every business has its complications while implementing any strategies and solutions related to their online business websites. Implementing a B2B eCommerce solution can present challenges such as:
- Complex Buying Cycles:Differentiating from B2C, dealing with multiple decision- makers and approval processes requires careful management of functionality online.
- Integration Hurdles:B2B businesses are higly reluctant with multiple systems/software. Ensuring smooth connectivity between legacy systems and eCommerce platforms.
- Customization Needs:No business fits the exact size of the solution, and so does the e-commerce platform. There is a need for custom development to meet industry-specific requirements and adapt to unique workflows.
- Resistance to Change:Early adopters are gaining the advantage of this B2B eCommerce wave, where businesses solely working on their traditional methods need a boost. Encouraging traditional B2B businesses to adopt digital solutions.
- Data Security:The strongest touchpoint ever wanted for any business is its valuable data. Being in B2B eCommerce means all the sensitive information being stored, accessed, and passed! Having a data-secured B2B eCommerce solution is about protecting sensitive information shared between businesses.
These challenges are overcome with a reliable eCommerce agency who could understand the features, and markets and help you implement the solution correctly! Along with such an agency, businesses should look out for dedicated B2B eCommerce consultants who could guide them in the proper direction to create a strong foundation.
Want to implement a B2B eCommerce solution?
If your offline business seeks growth, wants to streamline operational efficiency, and manages cost smartly, getting everything connected async, you must start looking for B2B eCommerce platforms. At Navigate Commerce, we always work on a consultative approach and our most profound capabilities are aligned in web implementations.
We've covered the B2B marketplace solutions, B2B manufacturer eCommerce model, and more. If you need assistance to understand, let us know. In the following blog, we will discuss different B2B eCommerce platforms and more.