The B2B business has become the most renowned online business strategy that has completely transformed the E-commerce industry as well. It is expected that in the year 2020, the revenue that B2B will generate for E-commerce will reach a gigantic figure. As per the stats, B2B commerce is exponentially growing at a rate of 7% every year. With the immense growth of online selling across the globe, more and more companies are availing B2B E-commerce solutions from reputed organizations to accomplish goals and boost profitability. Let’s talk about what the B2B E-commerce model is and how it meets the modern-day business requirements.
What is the B2B E-commerce Business Model?
To understand in simple terms, it is a form of electronic commerce that performs transaction of services between different businesses through the internet. In most scenarios, all the transactions are done over an online portal. The main benefit of this business model is to grow the business efficiency and revenue of retailers. Rather than processing orders manually, all the orders in the B2B model are managed in the digital platform. Unlike the conventional E-commerce model of purchase and sale, the B2B model deals in commercial transactions among the businesses. Not all CMS is perfect for this business model, however, experts recommend Magento. This CMS has all the features that are required for the development of this model. Another benefit is that a user can avail additional plugins & themes from the Magento marketplace with timely support. The strength of the B2B model is based on careful planning and profitable transactions keeping complex market conditions on priority.
What are the benefits of B2B E-commerce Business Model?
1. Market Stability
In comparison to the other business models, the B2B E-commerce business model is more secure & stable. Enterprises opting B2B model grow gradually and can adapt to different complex market conditions. This helps to grow the online presence and business opportunities to get more conversions and resellers.
2. Improved Sales
An advanced supply chain management in addition to the collaborative approach, customer loyalty is grown in the B2B E-commerce business model. This, ultimately, leads to higher sales. It helps businesses to showcase product recommendations and grow effective upselling and cross-selling opportunities.
3. Reduce Costs
Due to the timely supply chain process, this online business model reduces operational costs for businesses. In most situations, the work is completed through automation that eliminates the chances of errors and undue expenditure.
4. Data-Centric Approach
One of the main benefits of the model is that it depends on the effective and factual information to streamline the complete process. In this way, errors can be removed and proper decisions can be made. With an integrated data-driven approach, you can calculate complete sales statistics. If you are unaware of this approach, you can hire Magento developers to implement this in your E-commerce website.
B2B E-commerce offers a high-quality platform for an organization to implement a comprehensive analytics campaign. With the help of E-commerce, business enterprises can measure and evaluate marketing campaigns in a systematic manner. Other benefits of analytics include sales effectiveness, inventory turns, product mix, customer sales effectiveness, and customer engagement.
The best thing about the Magento website design is the support of the Multi-store. For an online selling business, Multi-store is an important element. Having the right B2B e-commerce platform helps to launch channel-specific E-commerce sites. This feature allows you to provide co-branded websites or microsites for every distributor or important client to meet the needs of global sales. A business can easily target the international audience by presenting the content in the local languages or currencies.
What are the latest trends in B2B E-commerce Business Model?1. Modern buyer segment
It has been revealed that nearly half of the B2B buyers are modern, young, intelligent and tech-savvy. These buyers need fast service and need more simplicity just like on the customer-driven websites. The unique buying preferences of the younger buyer segments will improve the growth of B2B businesses in the long term.
2. Mobile Commerce
Mobile commerce is one of the hottest trends and will stay for longer in the major business sectors. It is completely transforming the concept of B2B marketing as most of the customers use mobile gadgets during the purchase process. Every task can be performed over the mobile right from the comparing of prices to exploring a plethora of other features. Modern buyers are using more and more mobile devices for making a purchase.
Apart from providing fast payment services and mobile-friendly platforms, personalization is yet another trend that needs to be taken care of in the long run. Plenty of business enterprises around the globe are investing heavily in the personalization element. Several price optimization algorithms to provide dynamic pricing are available to help in decision making. Ultimately creating a personalized experience is a crucial factor behind creating a more profitable environment for B2B E-commerce business in the coming years.
So you’re very well aware of the benefits, trends of B2B E-commerce, but the most important thing is its implementation. Consult the experts. Analysts at Magento India a renowned Magento development company can help your traditional business to move to the B2B E-commerce model. This will help your business to meet those targets that were earlier missing. Manufacturers and distributors have complex business needs that can only be matched by the most innovative B2B solutions.