The streamlined shopping experiences we have with our favourite consumer e-commerce sites have raised the bar for B2B buyers.
Business buyers no longer want to do business by phone, fax, or catalog. Instead, they want to buy from consumer websites with features like intelligent search, personalization, and self-service. Statista says that the B2B market was six times bigger than the B2C market in 2019 and was worth $12.2 trillion worldwide. According to Forrester, the B2B ecommerce industry in the United States will reach at least $1.8 trillion by 2023.
The majority of manufacturers are aware of the advantages of establishing a direct relationship with end consumers as well as the advantages of selling directly to B2B buyers (wholesalers, distributors, and retailers). However, it is also common knowledge that many B2B businesses avoid selling online due to channel conflict because they do not want to disrupt their relationships with channels. The status quo is the default choice for many B2B companies: a digital catalog with products but no transactions or customer service capabilities.
Ironically, one of Magento’s main growth drivers in the B2B market has been breaking through this status quo. Adobe Senior Manager, Product Marketing Shannon Hane asserts this.
“We’re seeing a trend of B2B companies needing to sell to channel partners AND consumers on a single platform,” says one industry expert.
Since Magento Commerce added B2B capabilities toward the end of 2017, the number of B2B customers seeking this hybrid use case has steadily increased. They have unique features that B2B organizations can explore, whether they are looking to re-platform or build out a commerce capability, given their long history in B2C ecommerce and robust content management capabilities.
First thing: B2B and B2C on a single platform
Magento has long recognized that consumers want a direct relationship with manufacturers, and today, a direct-to-consumer capability is a crucial business requirement. When a company invests in and maintains a consistent digital brand experience across audiences, sites, and geographic locations, everyone benefits, analogous to a rising tide lifting all boats. Hane asserts that a direct relationship with a customer does not necessitate compromising other sales channels. In point of fact, numerous manufacturers have discovered that making an investment in their own digital presence can in fact produce a halo effect for their channels, including an increase in retail traffic. Many B2B clients of Magento Commerce have looked for creative ways to work with channel partners, such as creating their own marketplaces. B2B companies can improve their brand experience and get closer to their customers without disintermediating their channel partners by “controlling the glass” and letting channel partners handle sales and fulfilment. A direct presence is becoming increasingly important. Manufacturers should have a direct-to-consumer safety valve in place because history teaches that any disruptive event can close traditional sales channels.
2nd feature: Direct-to-consumer (D2C) data that can be taken into account
Manufacturers can more easily consolidate the data and get a complete picture of their digital commerce business by operating both B2B and B2C on a single platform. Through site and sales metrics, customer ratings and reviews, a/b testing, and other methods, they can use the D2C channel to connect with their final customers more closely and collect useful data. They may be able to refine their existing product offerings with the assistance of this data, choose which new products to include, and acquire insights that will assist them in choosing which products to sell in the physical retail channel.
3rd feature: Integration of the Amazon marketplace
The B2B marketplace that Amazon launched in 2015, in addition to its consumer marketplace, reached $1 billion in its first year and has quietly grown to over $10 billion in gross merchandise volume, growing faster than Amazon’s retail and AWS segments. Magento Commerce’s Amazon Sales Channel enables merchants to manage products and sales on Amazon from within Magento Commerce, making it ideal for B2B businesses looking to enter this enormous market. Amazon can synchronize B2B companies’ product catalogues, inventory, and order information through a single interface. B2B merchants can offer businesses tiered pricing based on the quantity purchased with B2B pricing. The interface makes it possible for a manufacturer to sell on the consumer market, and it makes it possible for a manufacturer of industrial supplies to sell on the B2B market. You won’t have to worry about managing multiple storefronts because both scenarios offer seamless integration.
With new companies entering the B2B market, there will be more competition and new buyer behaviours, so it’s safe to assume that B2B ecommerce will continue to grow. The Magento Commerce B2B ecommerce platform offers unique capabilities for any B2B organization concerned about channel conflict or defaulting to a status quo solution.
