E-commerce for business-to-business (B2B) transactions is on the rise. According to research, B2B e-commerce sales will reach $1.8 trillion by 2023 and account for 17% of total sales.
This raises a valid concern: Why are brands turning away from direct-to-consumer sales and moving toward B2B sales? Why do most B2B sales take place online, then?
The benefits of the B2B e-commerce business model are discussed in this article, whether you are a native brand entering the B2B market for the first time or a traditional retailer shifting from in-person to online B2B sales.
Advantages Of B2B Business Going Online
Going digital offers obvious benefits and even clear-cut misconceptions. Following are the significant and different advantages that come with the shift to a digitally native ecosystem.
Amplify Brand Awareness
For B2B brands, brand recognition is a challenge. The amount of exposure you receive mostly depends on how enthusiastically your clients will promote your goods in public.
But selling through B2B channels like wholesale broadens brand recognition. Resellers purchase your goods at bulk discounts and handle your marketing on your behalf.
Your product labels include your logo, big brand, and any trademarked catchphrases—that appear in channels under your retail partners’ control, whether it’s another online store or a physical store.
Low-Cost B2B Marketing
With DTC, expensive marketing or advertising campaigns are the sole way for consumers to learn about products. Playing that game is risky.
With the release of iOS 16, Apple has made it more difficult for businesses to follow consumer behavior and gauge the effectiveness of their marketing initiatives.
As a result of Google’s killing of third-party cookies, which was imitated by other search engines, the cost per click for paid search advertisements increased by 15% between the second and third quarters of 2021.
On the other side, marketing is handled on your behalf with B2B Marketing. Your product will be promoted by resellers to appear in storefront windows, on the shelves of big department stores, and in online marketing campaigns.
More Volume And Order Value
B2B purchasers make purchases more frequently as well, particularly if you make it simple for customers to self-serve through your B2B e-commerce website, such as Tradekey.com. Buyers frequently reorder huge quantities, whether once daily, once weekly or once monthly.
You cannot say the same for customers in industries like fashion and apparel. End users rarely have enough discretionary income to regularly purchase goods from the same brand every week or month.
Automatic Business And Sales Procedures
Managing B2B offline sales involve many interconnected moving components. A sales representative is a requirement by a traditional B2B company operating online to establish relationships, enter orders into the system (occasionally using paper and pen), create invoices, and remind clients when payments are due.
However, the following are the main advantages of moving B2B transactions online:
- That Lessons Human Mistakes: Automate the entire B2B sales process with workflows to minimize human error. Less likelihood exists that the incorrect products will be delivered, your clients will be mistakenly billed, or you will fail to notify them of a forthcoming payment.
- Increased Adaptability To Boost Sales And AOV: Utilize sales features like upselling and product suggestions to scale your B2B sales strategy. Both times, you may get more money from your current clients without having to send your sales crew to each one of them one at a time.
- Faster Completion Of Orders: Take wholesale orders at any time of the day with an online sales interface, and generate efficient packing slips for your warehouse employees to complete. Faster delivery of shipments to your customer. These consumer experiences are what promote repeat purchases.
- Improved Judgment: To get the whole picture and make wiser business decisions, combine data from merchandising, sales, and logistics. It will be simpler to forecast demand across both channels and prevent dead or surplus stock. For example, B2B and B2C orders may be managed through a single, independent inventory management system.
Remove The Global Distribution
Your firm may prepare to go worldwide with an internet presence. Starting with a single end, enter new markets. However, in practice, the logistical challenges of global expansion are costly and time-consuming.
Enter the B2B market and let your new clients handle your distribution. If you are a US-based CPG company, you might try selling wholesale to European B2B clients to enter new markets. You merely ship merchandise to one foreign site; resellers serve as your product’s distributors.