The future of B2B commerce is online
"If your business is not on the Internet, then your business will be out of business". - Bill Gates.
B2B e-commerce has grown rapidly in recent years, with COVID-19 significantly accelerating the expansion of this phenomenon since 2020. However, this is no passing trend. New, younger and more technology-savvy employees are the main drivers of this development.
DHL(1) estimates that the size of the global B2B E-Commerce market will grow by over 70% to reach $20.900 billion by 2027. DHL also predicts that by 2025, "80% of all B2B commercial interactions between suppliers and professional buyers will take place over digital channels."
Although the majority of B2B companies are gradually adapting to the buying habits and new expectations of online users, the number of suppliers taking advantage of this opportunity is still limited. The proof, 85% of B2B companies perceive E-Commerce as an important revenue opportunity that they are not yet fully exploiting.
If you still don't believe in this trend, find out why we think you're making a mistake.
1. Buying habits B2B have changed
B2B sales used to be much easier. A person in need of a product or solution would approach a potential supplier and deal directly with a sales representative, who would present the best options to choose from. If they were satisfied with what they heard, they would make a purchase.
Compare this with the purchasing process a B2B buyer goes through today:
- someone identifies a problem
- looking for an online solution
- it discovers various potential solutions and examines them in depth
- she talks to her peers and colleagues for advice and recommendations
- it verifies the credibility of companies by looking at the reviews and reputation of its customers
- finally, on the basis of all this information, she makes a purchasing decision and buys the product directly online or by contacting the company.
Ways of doing things and mentalities have changed. Lodern buyers are highly skeptical of the sales and marketing messages they encounter. According to a Forrester report, "59% of buyers would rather do research online than interact with a sales representative because the representative is promoting their products rather than helping to solve a problem." (2). They have changed the way they gather information, and now carry out up to 60-70% of their decision-making process without ever having to talk to a salesperson (3).
With this in mind, you need to do everything you can to guide and accompany visitors through the decision-making process on your site. (see point 3).
In addition to the information-seeking phase, buyers now expect to be able to order online. Nowadays, online shopping is part of everyday life, with consumers able to order anything they want quickly and easily. These people go on to work as professional buyers and expect the same experience when processing orders for their company.
Surprisingly, around half of all companies make online purchases, but only 22% offer an online purchasing option(4).
For you, this represents a fantastic opportunity. Customers want, if not to order online, at least to get information about your website, and if you offer them the opportunity when your competitors don't, you've got a serious chance of getting ahead of them. Conversely, if you don't, you can be sure that a more daring competitor will take advantage of the opportunity to corner the market and capture your prospects and customers.
Just look at the evolution of the printing industry, which has completely changed with the advent of Web-to-Print. While very few people were betting on it just twenty years ago, Web-to-Print has now become an integral part of the industry, and its growth continues.
2. Proof of your existence
A website, coupled with a good acquisition strategy, will enable you to easily reach a wider audience. It also reinforces your credibility with prospects and customers.
The first thing someone will do when they hear about your company is to visit your website to see what you have to offer and whether they can trust you. If they don't find you, your company won't seem serious. A study by Weebly shows that "56% of consumers say they don't trust a company without a website (5)".
Without a website, you have several options:
- public relations is a great way to get noticed
- advertising helps prospects and customers remember you
- e-mail keeps you in regular contact with your customers
- social networks give you visibility
However, all these methods are only limited if they don't lead back to one and the same place: your website.
What's more, having a website gives you total control over your communications. You can use it to showcase your strengths and distinctive features, and accentuate your differentiation from other market players.
3. A silent seller
Your site is an active salesperson 24 hours a day, 365 days a year, providing information, guidance, recommendations and data collection, even when you're asleep.
As we've seen, most purchasing decisions begin with an online search. Having a website not only helps prospects find you, but also plays a key role in encouraging them to engage with you.
Prospects can visit your website outside business hours to obtain assistance or information on your products and services, at a time that suits them best. What's more, they can retrieve the information they're interested in in a less time-consuming way. They're not constrained by office opening hours, your website offers prospects a way to "get in touch" without having to do so.
By the way, 90% of B2B decision-makers say that when they're ready to buy, "they'll find you". (6). Your potential customers are already comparing your brand with those of competitors. Having an online presence is vital because it allows your potential customers to interact with your website, that silent salesman, long before they talk to a member of your team.
A website also improves the long-term relationship with customers. Since many B2B customers buy the same items several times over, online access to past orders and quick order forms facilitate repeat purchases. Added to this is the ability to create standing orders and automatically send reminders when it's time to place a new order. So the customer can simply click and buy. The simpler you make the purchasing process, the more your customers will reward you for their loyalty.
Once again, we can use the printing industry as an example. One of the key factors driving printers into Web-to-Print was their frustration with their customers' numerous payment defaults. They had the vision and seized the opportunity that the Web brought them to set up an E-Commerce platform requiring payment in advance or on delivery.
Selling online offered them a number of benefits:
- Ease of purchase for the customer
- A customer base that knows no geographical boundaries
- Instant payment, enabling them to simplify their cash flow and invest increasingly in their technologies
- Automated production processes cut costs and boost margins
All these advantages have enabled them to sell large volumes, automate their production, achieve economies of scale and thus be able to offer advantageous prices to their customers, creating a virtuous circle.
Conclusion
Every study points to online sales as the future of business-to-business sales. B2B transactions are evolving to resemble B2C transactions more and more. If you - corrugated and folding carton manufacturers and converters - are still relying solely on a traditional sales funnel, you're likely to feel a decline in your sales performance in the years to come (if you haven't already).
At Packitoo, we support packaging manufacturers in their digital transformation of their sales process. We'll be happy to advise you and provide you with all the training you need to successfully launch your Web-to-Pack e-commerce site.
- The ultimate b2b e-commerce guide. Tradition is out. Digital is in. - DHL
- Death Of A (B2B) Salesman - Forrester
- Study: Half of B2B Buyers Make Up Their Minds Before Talking to Sales Reps - Miller Heiman Group
- UK B2B E-Commerce Market Report 2021 - Mintel
- An Easy Way for Small Businesses to Make More Money - Weebly
- New B2B Buying Journey & its Implication for Sales - Gartner