B2B ecommerce, or business-to-business electronic commerce, describes online order transactions between businesses.
Because orders are processed digitally, buying efficiency is improved for wholesalers, manufacturers, distributors and other types of B2B sellers
Businesses often buy goods in bulk for a lower price and turnaround to sell them at retail value. The goods are usually purchased directly from the manufacturer or distributors. This is wholesale, and it’s a popular form of B2B. Wholesale could also be described as the sale of goods to other businesses.
Wholesale B2B models are present in many industries including retail, food service, construction, and medical, among many others. Traditionally, wholesale B2B transactions occurred over the phone, via email, or by way of spreadsheet order forms.
With wholesale ecommerce, everything is digital using a B2B ecommerce platform. The platform allows the wholesaler to display products easier and creates a seamless buying experience.
Manufacturers produce finished goods on a large scale by utilizing parts and raw materials in combination with manual labour and machines. In a B2B model, the finished goods are sold to other manufacturers or wholesalers.
The auto industry is a good example of manufacturers in a B2B arena. The manufacturer creates individual car parts, such as a fuel pump and an engine. Then, the manufacturer sells these parts to an automotive company that builds the entire car from the parts and sells it to the consumer.
In the same way that wholesalers are taking business online, manufacturers are, too. B2B buyers are looking for a buying experience similar to B2C and these businesses are taking note.
There are many advantages to using a B2B ecommerce platform, and they are vital to business success. Here’s a few reasons why using a B2B ecommerce platform is the direction to take.
A B2B ecommerce site with public-facing catalog pages is a powerful way to reach new B2B customers. By going online, you can utilize digital marketing strategies to increase your reach.
Your future buyers not only prefer to shop online but will demand it. B2B buyers are getting so used to making purchases online, they’re starting to expect it. Buying online is efficient and it makes repeat purchases much easier.
The concept of B2B ecommerce offers better management of both the suppliers and customers. Going digital means you can leverage software solutions for ecommerce business management. This will show you data about how your customers shop.
You’ll be able to use this information to create better, more personalized shopping experiences for your customers. Essentially, the whole initiative is a win-win for both parties.
Not only will you reach new customers, ecommerce also allows you to easily implement an automated cross-sell and up-sell recommendation program. This goes hand-in-hand with offering shoppers a personalized experience. You’ll be able to help them find products they’re looking for, without them having to ask — much like an in-person sales associate would do.You’ll be able to use this information to create better, more personalized shopping experiences for your customers. Essentially, the whole initiative is a win-win for both parties.
