Rapid Growth of B2B eCommerce And Its Impact on Business
The rapid increase in sales of smartphones and affordability of the same is one of the main reasons for the growth of B2B eCommerce, and emerging countries like India are contributing to it in a significant way. Moreover, easily accessible technologies are also impacting it positively by giving customers the freedom of shopping irrespective of location, device, or time.
Several platforms are emerging nowadays, and many established ones are already in the market and ready to help your business grow. They have access to all the latest tools and technologies available in the market. In addition, some companies are trying to enter the market by providing IT and digital marketing solutions to help this sector more. As a result, it will boost sales while bringing more and more leads and creating new opportunities.
The market is dynamic, and it is constantly changing. Therefore, adapting to the latest trends and technologies is crucial to compete. Considering these two factors in mind, along with the continuous experiment, the chances of growth of the business will increase, and competition will be less.
In every business model, the customer is everything, and their satisfaction is important. Companies have to work effectively to achieve the goal and ensure that the requirement of the customer is fulfilled. It helps in customer engagement and also increases business.
Due to digitization, retail eCommerce is infiltrating the market, and it is expected to hit $18.77 Trillion by 2027. In contrast, it currently stands at $8.52 Trillion in 2021, expanding at a healthy CAGR of 14.1%, according to a survey.
Businesses are focusing more on B2B eCommerce because of its multiple benefits. Still, security and privacy are major concerns, but with the arrival of modern technologies, we are overcoming this factor each passing day while creating solid trust among the customers.
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There are several reasons for people to choose eCommerce as an option for their B2B businesses, as they see a clear roadmap with effective results and a big market that is exponentially growing. Some of the significant factors are mentioned below to give you a clear understanding of why B2B eCommerce solutions are impacting businesses:
Digital Payment
The rise in digital payments is one of the main reasons for the success of the eCommerce sector. Everyone is accepting digital payments, from local vendors to large showrooms, and the trend is increasing daily. Accessibility to the internet and modern technologies are two major contributing factors.
Digital payment enables customers to access multiple payment options compared to traditional methods. Modern payment alternatives allow a business to expand its market and become global.
Due to the heavy competition in the technology industry, the cost of the latest equipment is becoming affordable, and it helps connect customers and businesses economically and effectively. McKinsey & Company reports that about 65% of B2B companies will fully transact online in 2022, irrespective of the industry.
Digital payments are fast and benefit suppliers as they get the amount at the time of order. So it helps them in many ways; they can focus on quality and supply as they don’t have to think about the payment issues, and everything will become automated.
Mobile Commerce
Most people nowadays research a lot before ordering anything online. The B2B eCommerce industry is a multitrillion-dollar industry and is expected to reach new heights in the near future. The number of smartphones is increasing in the market due to reduced prices of the latest technologies and the competition, which benefits customers and businesses alike. Mobile e-commerce has made it easier for customers to check all the options with a single tap without thinking about location.
Mobile shopping has evolved over the years and has shown massive growth in capturing the market. According to a report, 72.9 percent of all retail e-commerce will be generated via m-commerce, up from 58.9 percent in 2017. If this trend continues, mobile commerce will grow and benefit B2B eCommerce in multiple ways. It is the future of the business and opening a range for both customers and companies.
Accessibility
B2B eCommerce platform provides an online presence to your business. It opens many unexplored markets for a company where it can make an impact and create a genuine customer base. It makes your work easier while making your brand bigger and gives you complete control over your company.
According to Gartner, it also helps brand awareness and customer reach, as 27% of B2B buyers consider online research and methods to fulfill their requirements.
At the current pace, the majority of B2B buyers in the future will start demanding online shopping. Information on product comparison, services, price, quality, and availability are readily available online, customers are also following the trend, and businesses are also looking forward to adapting it.
Customer Satisfaction
Customer-friendly models are the core of every B2B eCommerce business. 80% of B2B buying decisions are based on a buyer’s customer experience. Buyers in B2B eCommerce also like to shop quickly and do their research primarily online for their respected queries. Some of them also want the process to be completely digital so things can run smoothly without any hassle. In a survey, 39% of B2B business owners responded that they would like self-service while accessing pricing at other B2B companies. They also expect custom eCommerce solutions for a better user experience, like B2C.
Expectations of B2B buyers are always on a larger scale when compared to B2C. There’s also a reason for it, as they buy these products for an organization, school, hospital, factory, firm, or something related, and they become responsible for it. Hence, they do much research and want their product or service to be completely error-free.
Considering all these factors, one can make their business model in a way that can primarily focus on customers and then work on other aspects accordingly.
Analysis
The expansion of the number of online sales channels disrupted the behavior of the old customers, and a new tool was required to maximize the benefit of online sales while understanding the customer’s behavior. Also, B2B companies that effectively invest in analytics to enhance marketing and sales performance are 1.4 times more likely to achieve a higher growth rate than their competitors.
Analytics provides companies with all kinds of customer data to scale their business while improving their less-performing aspects. For example, companies can track their progress and B2B sales data, customer geography, source of the leads, and vulnerable and high-performing assets. Companies can implement all of these data to make a well-structured strategy that helps reach new heights. Security was a significant concern here, but with the current wave of modern technologies, the situation is under control, and work to improve it is going on consistently.
Scalability & Sales
Scalability improves your firm’s sales, visibility, orders, cost, trust, and credibility. Automated technologies and tracking provides regular and trusted updates to customers by getting data from different channels. As a result, it ensures faster delivery and transparency that helps customers and ultimately boosts sales. As a result, more than 62% of B2B businesses clearly state an increase in sales in 2020.
Businesses will grow and scale quickly by fulfilling customer needs with the help of new sales channels and continuous breaches in new markets. By creating content that solves the customer’s queries while informing them about the benefits and providing them some value, one can quickly adapt to changes in the market and stay ahead of the competition.
Cost-Effective
One of the most appreciable benefits of B2B eCommerce is its cost-effectiveness, as it generates more revenue while keeping the costs on the lower side. Due to modernization, everything is online, and the same is applied here, taking every aspect of business online. This automated and online feature helps cut down unnecessary costs burdening various companies.
To Sum Up
Every single data and trend suggests that B2B eCommerce is here to stay, and it will also take a significant stake in all B2B sales happening worldwide. It has been continuously growing at a much higher pace and benefiting businesses in a way they can not ignore. Therefore, it will also be a must-have platform for B2B businesses and buyers in the future.
