In recent years, the world of B2B has significantly shifted thanks to a new wave of B2B professionals who are largely millennials and Gen-Z.
As a result of this new wave of professionals, the B2B world has significantly changed in terms of digitisation, adopting new technology and creating more flexible and customisable processes to suit the world we now live in. Largely inspired by the setup of B2C ecommerce businesses, the world of B2B has become much more streamlined, simplified and user-friendly as buyers can simply purchase items from an online store and have them delivered to their warehouse or retail outlet, very easily. As B2B ecommerce becomes more prevalent, we thought we’d take a deep dive into the B2B landscape and provide our top tips for success!
What is B2B ecommerce?
B2B ecommerce simply describes the online sale of goods between two businesses. Previously, B2B trade would have occurred via purchase orders over the phone, via email or even the good old post. However as we’re in the digital age, B2B brands have had to adapt and pivot to ensure they can successfully operate an online store to keep up with ever-changing customer expectations. B2B ecommerce is different to B2C ecommerce, which is where retailers sell directly to consumers, however in recent years, the two types of ecommerce have become increasingly similar as B2B brands have begun to take inspiration from B2C websites.
Whilst B2B ecommerce may look very similar to B2C websites on the surface, there are usually very advanced integrations, tools and features that offer sophisticated functionality and allow brands to succeed within the B2B space. In most cases, trade requirements are much more complex than consumers just looking to buy something for themselves and regulatory requirements often require brands to showcase detailed product information and health and safety inspiration in addition to VAT costs, minimum order requirements (MOQs), carriage information and more. B2B websites offer advanced functionality to ensure accurate discounts and pricing, to ensure that inventory management is efficient and to ensure that each trade customer feels truly nurtured and valued.
Types of B2B ecommerce
There are various different types of commerce that fall under the B2B umbrella. If you’re a startup B2B brand taking your very first steps into the world of B2B, this may just help you to decide which avenues are best suited to your business goals and target customers.
Wholesale
Wholesale is probably the most well-known B2B avenue where manufacturers or distributors sell products at discounted prices to retailers in exchange for large, bulk orders. Retailers then sell these goods onto consumers at a recommended retail price. As a result, wholesale ecommerce websites should be designed in a way that easily displays important product and delivery information that retail buyers need to make an informed decision, without causing overwhelm or decision fatigue.
Trade customer account areas for wholesale buyers are fantastic way to ensure that wholesale customers can access and track existing/previous orders, save products to their wishlist, contact customer service and more, all from within a dedicate online account. This makes the shopping experience feel more personal and encourages customers to purchase more goods. Offering redeemable loyalty points and rewards is also a great way to nurture wholesale customers and keep them coming back for more.
Manufacturers
Manufacturers create products which are then sold directly to other manufacturers, wholesalers or suppliers. Manufacturers usually produce large quantities of products that they sell on to various third parties including other manufacturers. Ensuring that your B2B website is set up according to your target audience is paramount to success. A key element to delighting trade customers (and in particular other manufacturers) is to offer personalised features such as your production schedule or sizing information.
Software-as-a-Service (SaaS)
SaaS is one of the fastest growing B2B models in the world right now. Designed specifically to aid digital ecommerce brands, SaaS B2B brands offer recurring monthly subscriptions to their unique software platforms to aid brands in everything from organisation and efficiency to CRM and inventory management.
Distributors
Distributors generally partner with manufacturers to help sell their products by alleviating the stress that comes from packaging, marketing and shipping their products. If you’re a manufacturer with a goal of selling products to a distributor, ensuring that your website is highly-targeted towards distributors and answers all of their FAQs is key to driving growth. Online distribution deals can be very lucrative and lead to streamlined supply chains and seamless communication if all is handled well.
Top tips for success
For brands with B2B business models, there are number of ways to increase organic traffic, improve customer retention/loyalty and drive those all important conversions to build a sustainable and profitable online business.
1. Prioritise omnichannel experiences
Omnichannel experiences are becoming integral to the customer journey and this also extends to B2B customers. Many customers will begin researching on their smartphone, perhaps compare products to the competition on their laptops, do further research in-store or at a warehouse and end up purchasing from their iPad. Ensuring that each customer touchpoint is consistent will significantly strengthen brand identity and increase trust.
2. Streamlined checkout processes
Any online store needs to offer a streamlined checkout process with minimal distractions and tons of trust signals but this is especially important when it comes to B2B ecommerce websites. Think about it, many buyers are extremely time-pressed and as such, need to make quick decisions, there and then. If your checkout process is clunky, cumbersome or overcomplicated, this can instantly put off a potential customer and lead to abandoned carts.
3. Ensure lightning-fast page speed
Page speed is one of the most important factors when it comes to ecommerce and is often cited as the top reason for a website visitor to abandoned the page they’re on. If you haven’t already optimised imagery, ensured that your website code is succinct and employed responsive web design, it’s probably time to get a reputable web design agency involved to improve page speed and core web vitals. Not only does this hugely improve UX and the customer shopping experience, it also improves your SEO credentials and can lead to more organic traffic.
4. Offer Various Payment options
When it comes to encouraging conversions for trade customers, it’s likely that they’ll be making high-value purchases. Therefore, offering various payment options that cover all bases is paramount to securing conversions. Whether you offer the standard range of credit card payment methods, PayPal, Apple Pay and Google Pay, in addition to allowing Purchase Orders, bank transfers, invoices and other payment terms such as 14 day payment agreements to suit your industry, be sure to do your market research and truly understand what your B2B customers prefer. That way, you can ensure that your checkout will not lead to abandoned carts or confusion.
5. Keep up with changing buyer expectations
Changing buyer expectations is probably one of the most difficult elements for ecommerce managers to keep up with. We are now seeing a huge generational shift as the workforce becomes dominated by millennials and Gen-Z and as a result, they are increasingly prefer to order products online, even when it comes to B2B. These younger buyers often have much higher expectations than those of generations gone by and brands must be aware of this if they want to stand out in the market and gain loyal brand advocates. By undertaking in-depth research, being present on social media and conducting polls, interviews and focus groups, B2B brands will have the best chances of addressing these changing expectations and adjusting processes as necessary.
6. Invest in AI
AI has taken the world by storm over the past few years and has made significant improvements in areas such as manufacturing and automation, inventory management, operational efficiency and marketing. If you haven’t explored the AI tools that could be beneficial to your B2B business, we’d highly recommend doing some research and getting to grips with the options available that could really drive results for your brand.
7. Personalisation
Ensuring that your ecommerce website offers personalisation in some way, is crucial to building trust and loyalty with your customers. Whether you create dedicated customer account toggles, include a VAT price switcher so buyers can flick between VAT included or excluded or add unique calculators that allow buyers to quickly work out potential savings based on different quantities, personalisation can transform your sales figures and hugely increase profits.
8. Eliminate MOQs
Minimum order quantities (MOQs) were once the industry standard, especially when it comes to wholesale. But as we move deeper into the technological era, this seems to be a thing of the past. Just think about how many independent, small and micro businesses that are doing very across the globe. They might not be able to order the large quantities that department stores once could, but does that mean you can do without their business altogether? Chances are, no! Be sure to accommodate these businesses by reducing or eliminating MOQs or offering terms where they can purchase smaller quantities but perhaps sign a 6 month contract. Think outside the box and always but your customers first!
9. Loyalty schemes
Speaking of putting your customers first, offering loyalty and reward schemes is a fantastic way to nurture customers and increase their loyalty to your brand. If you offer a generous discount after X amount of orders or when they reach a total spend of £X within one year, this is sure to incentivise them to keep coming back to your ecommerce site and commit to purchases. Not only do they enjoy monetary rewards, it almost gamifies the process – something that millennials and Gen-Z are constantly seeking in this day and age.
10 Eliminate friction points
Friction points are the number one reason that your ecommerce website isn’t converting as well you’d like. A clunky mobile experience, unclear or uninspiring product imagery, complicated product descriptions, poor UX and a lack of trust signals are all great examples of friction points that you’ll need to eradicate if you want your B2B ecommerce website to beat the competition.
And there we have it, everything you need to know about B2B ecommerce and a few of our best tips to help your business succeed! If you need a helping hand with designing a new, conversion-driven B2B ecommerce website, don’t hesitate to get in touch!
