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B2B_eCommerce

What is B2B eCommerce and How Does It Work?

B2B companies have historically been hesitant to adopt the eCommerce model. But with the pandemic acting as a catalyst for change and more millennials entering the B2B market, customer expectations are rising more quickly than ever, and B2B businesses need to keep up. Customers want the same experiences from B2B merchants and grow impatient with those who don’t deliver them in time.,

B2B merchants are left to interpret the requirements of the contemporary B2B buyer in the middle of a changing environment. However, B2B companies still using outdated technology or undergoing a digital transition could be challenging. 

The objective is straightforward: increase client reach while lowering cost-to-serve to increase revenue for your company. The B2B eCommerce market is growing. According to Statista, The B2B eCommerce market was valued at $14.9 trillion in 2020, more than five times the size of the B2C market. 

How Does B2B eCommerce Work?

Business-to-business (or B2B) refers to the direct sale of goods and services between two companies.

B2B has a very different business strategy than B2C, which involves companies selling directly to customers. Through an online sales platform, B2B eCommerce involves transactions between manufacturers, wholesalers, and retailers.

B2B eCommerce is one of the fastest-growing sales formats.

The shift has been partly fueled by the innovation and technology of B2B eCommerce platforms. Traditional B2B sales and marketing procedures require a lot of manual labor. Through eCommerce automation, the introduction of digital commerce assists these organizations in lowering expenses and increasing efficiency.

B2B sellers work with wholesalers, retailers, organizations such as schools and non-profit organizations, and resellers. 

A few benefits of B2B eCommerce 

  • Automated sales procedures among distributors, suppliers, and companies
  • Lower costs for the infrastructure and overhead
  • Scalable ability to reach a large audience
  • 24/7 brand presence across all channels
  • better interactions between partners
  • increased output from the workforce

Types of B2B eCommerce 

A business will probably fit into one of the following three categories if it is new to B2B eCommerce. Each has advantages and disadvantages, and many businesses simultaneously operate in several categories.

B2B eCommerce

1. B2B2C

Business-to-business-to-consumer, or B2B2C, is a practice where a manufacturer or a distributor sells products to B2B companies, who then sell them straight to customers.

A B2B2C company frequently features a digital storefront exhibiting its product catalog in an eCommerce environment. The customer may not be aware that the company doesn’t make the product.

2. Manufacturer

Large quantities of products are produced by manufacturers, who sell them to suppliers, distributors, or other manufacturers. 

To sustain in the competitive environment, manufacturers must adapt to the shifting demands of the digital age. Wholesalers, suppliers, other B2B organizations, and consumers want more options regarding buying produced goods. Manufacturers must be able to perform online transactions with access to customized features like price, production schedules, or sizing as demand from businesses grows.

3. Distributor

Distributors handle the marketing, packing, and shipping that a manufacturer might not wish to do internally. To sell their goods, manufacturers have the option of working with distributors.

Online collaboration between a distributor and a manufacturer is possible. The producer and distributor can achieve quicker, more efficient supply chains to meet or exceed client expectations by reaching agreements using an online platform.

As a business may expect, it takes competition to gain market share by providing a top-notch client experience. This calls for the necessity of optimizing cost-effective distribution initiatives.

Consider Fulfillment by Amazon as an example. Many startups and established companies today outsource their fulfillment processes to Amazon and other cost-efficient eCommerce giants.

4. Wholesaler

In a wholesale arrangement, businesses buy products in large quantities from distributors or manufacturers and then offer them for retail sale to customers.

Buyer-focused B2B marketplaces are a practical approach for wholesale suppliers to promote their goods to consumers and retailers while spending less on marketing. Where there are more buyers than sellers, marketplaces are geared toward consumers.

In this instance, buyers have their own online markets. They allow manufacturers and suppliers to display their wares and take offers from various vendors.

Why select Pickrr as your bulk shipping partner?

Pickrr is a SaaS-based enabler that helps brands provide a seamless service and the best post-purchase experience to their customers. To leverage smooth and seamless B2B shipping services, brands can use the RocketBox portal directly from the Pickrr website.  Here are some benefits of using RocketBox for B2B:

  • Unified Dashboard: A simple and unified dashboard to manage all the procedures on one platform. 
  • 18k+ pin codes for B2B businesses 
  • Appointment-based Delivery
  • E-PoD ( Electronic Proof of Delivery)

Conclusion 

There is no denying that B2B eCommerce is advancing. And given how swiftly B2C companies are already moving across the digital arena, it’s probable that the B2B sector won’t be far behind.

Businesses will be happy to learn that there is no shortage of eCommerce platforms and capabilities available for the B2B community, whether they’re trying to start a B2B business or want to move their present company online. The advantages of eCommerce far outweigh the initial investment, even though moving digital may be beyond a company’s comfort zone. These advantages include access to new markets, higher conversion rates, enhanced customer happiness, centralized data, and much more. 

Therefore, if a B2B company is still using antiquated procedures, it may be time to eliminate old ideas and embrace the future of B2B eCommerce. RocketBox, a B2B bulk shipping provider, is one solution for growing businesses. With a wide network, tech-enabled dashboard, and more, it is one of the best solutions for a B2B company. 

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