The Ultimate B2B E-Commerce Guide
The Ultimate B2B E-Commerce Guide
The Ultimate B2B E-Commerce Guide
B2B E-COMMERCE
GUIDE
TRADITION IS OUT. DIGITAL IS IN.
A DHL EXPRESS WHITEPAPER
2 B2B’s E-commerce Revolution
CONTENTS
Major challenges 16
WHAT IS B2B
E-COMMERCE?
B2B e-commerce, or business-to-business
electronic commerce, describes order
transactions between businesses via an online
sales portal. In general, B2B e-commerce
is used to advance the performance of a
company’s sales efforts; because orders
are processed digitally, buying efficiency is
improved for wholesalers, manufacturers,
distributors, and other types of B2B sellers.
A SNAPSHOT
OF GROWTH
OPPORTUNITIES
In 2019, global sales on
B2B e-commerce sites and
marketplaces jumped 18.2% to reach
US$12.2 trillion, outpacing the B2C
sector, and is projected to reach US
$20.9 trillion by 2027.
1. In B2B, the sale takes place between two business 6. In B2B, payment is in the form of credit sales,
entities, while in B2C, goods and services are sold to while in B2C, it usually involves direct sales using a
a customer for their personal use. localized payment option without any credit being
accumulated.
2. In B2B, decision and approval processes can be
complex and lengthy, involving the input of multiple 7. In B2B, product assortment and catalogs are
departments, while in B2C, the decision is made by a customized with unique segmentation to meet each
single customer. business customer’s requirements, while in B2C, it’s
generally the same for all.
3. In B2B, the size and value of transactions are
traditionally large with lower frequency, while in
B2C, they are smaller and often one-off (although
Fundamentally though, B2B and B2C are
repeat purchases do feature.)
about the same thing – selling goods to
people, and the expectations of these
4. In B2B, the terms and pricing are customer or order
two customer groups are increasingly
specific, reflecting individual customer relationships,
overlapping. But turning your B2B website
while in B2C, prices are likely to be fixed.
into an Amazon-like experience to make
5. The relationship horizon in B2B is long term, while in purchasing simpler is only half the story…
B2C, it tends to be short term.
6 B2B’s E-commerce Revolution
3a - Gartner, “Future of Sales 2025: Deliver the Digital Options B2B Buyers Demand,” December 2020, https://gtnr.it/3sbRRu4
3b - Gartner, “Future of Sales 2025: Why B2B Sales Needs a Digital-First Approach,” September 2020, https://www.gartner.com/smarterwithgartner/future-of-sales-2025-why-b2b-sales-needs-a-
digital-first-approach/
7 B2B’s E-commerce Revolution
4 - Sana, “How to Meet Buyers’ Demand for (Better) B2B E-Commerce,” February 2019, https://info.sana-commerce.com/int_wp_b2b-buying-process-2019-report.html
8 B2B’s E-commerce Revolution
1. DIGITAL INFRASTRUCTURE
A key feature highlighted by interviewees was the need to
heavily invest in digital infrastructure. They drive real value for
their businesses and customers by incorporating technologies
such as artificial intelligence, machine learning, big
data analytics and business intelligence
insights. These technologies
allow the streamlining of
internal and external business
processes to improve the
accuracy of demand planning
and forecasting.
2. CUSTOMER EXPERIENCE
The research pointed to a simple but effective on-site search engine as essential to
enable customers to find and view the products on offer. The more sophisticated B2B
players integrate a more comprehensive suite of tools to help their customers navigate
their sites and find detailed information about the products, including mega menus,
video product demonstrations, website tutorials and competitor comparisons. Some
e-commerce platforms incorporate live online support to assist with any queries or
issues, which improves conversion levels and facilitates buying decisions. Research
by Gartner found that more focus on information systems (IS) and online support
results in increased customer satisfaction6.
6 - Gartner, “Rapid Assessment Customer Satisfaction”, accessed on February 02, 2021, http://www.gartner.com/pages/docs/bvit/images/CustomerSatisfaction.pdf
7 - The XM Institute, “ROI of Customer Experience,” August 2018, https://www.qualtrics.com/xm-institute/roi-of-customer-experience-2018/
11 B2B’s E-commerce Revolution
3. PERSONALIZATION
Customers want personalized solutions and B2B e-commerce
companies are offering those via customer portals with content
organized around a number of parameters: past purchase
history, price optimization algorithms that meet
customized product price requirements, and configure-
price-quote (CPQ) software to make online quotes and
prices that are adjusted on the basis of the relationship.
Examples of price optimization and CPQ software include
Vendavo8, Navetti9, Blue Yonder10 and Oracle11.
The research found that most advanced B2B companies are using
the latest technologies to combine knowledge from both human
and machine in order to identify patterns of human behavior.
This moves them into the ‘cognitive commerce’ space, where
the platform can predict and anticipate future behaviors
of customers and use those learnings to personalize
the experience for specific customers. IBM Watson12
and Cognitive Scale13 provide cognitive commerce
platforms with wider applications across sectors.
8 - https://www.vendavo.com/ 11 - https://www.oracle.com/index.html
9 - https://www.vendavo.com/vendavo-acquires-navetti-intelligent-pricing-made-simple/ 12 - https://www.ibm.com/uk-en/watson
10 - https://blueyonder.com/ 13 - https://www.cognitivescale.com/
12 B2B’s E-commerce Revolution
4. OMNI-CHANNEL
The research found that integration was most successfully carried out
through B2B omni-channel commerce; a multi-channel sales approach
combining traditional online, bricks and mortar stores, tablet and/or
smartphone options. This seamless integration increases customer
engagement and helps B2B companies to
amplify their business goals and targets
by reaching business customers globally.
Webrooming is another interesting customer
behavior that B2B customers are practicing
(it’s otherwise known as ROBO – Research
Online, Buy Offline). As individual consumers,
we’re used to cruising the internet for
information before going in store to make a
purchase. Now, this behavior is becoming
more and more popular within the B2B
environment: researching online, deciding
on a purchase, and then reaching out to a
sales rep to place the order. The different
touchpoints with the customer need
to be managed so that the overall
customer experience, right through
to the final purchase, is seamless,
irrespective of the channel used.
5. SYNCHRONIZATION OF
LOGISTICS
Perhaps unsurprisingly, many interviewees identified
the critical role of logistics in B2B cross-border
e-commerce. This is not just about last-mile delivery,
but also the overall fulfillment strategy.
With the pandemic ravaging the globe, your business may have
joined countless other manufacturers, distributors and wholesalers
which have relied on B2B e-commerce to keep operations going and
switched in-person sales meetings to online channels like Skype14.
Unlikely 17 8
No go-to-market
4 3
changes
It is no longer a question of if you should move your business online but when and how fast. Many B2B companies that do not yet
have an e-commerce solution are now starting the process of looking for solution providers. Are you?
14 - Skype
15, 16, 17 - McKinsey & Company, “These eight charts show how COVID-19 has changed B2B sales forever,” October 2020, https://www.mckinsey.com/business-functions/marketing-and-sales/our-
insights/these-eight-charts-show-how-covid-19-has-changed-b2b-sales-forever
15 B2B’s E-commerce Revolution
MAJOR CHALLENGES
Despite the benefits of introducing an e-commerce platform to your business, it’s important to consider
some of the risks and challenges that sectors operating in the new B2B e-commerce environment will
face. Some, such as the fashion sector, will adapt quickly, whilst others, like the pharmaceutical sector,
will require a longer-term development plan.
The key barriers and challenges to B2B e-commerce growth were identified by supply chain experts
during DHL’s research (see Appendix for the interviewees):
N Employees will be required to upskill in order to accommodate the changing As with any new venture, the key
business and supply chain landscape. A ‘digital first’ mindset and being open
to innovation is required to drive success. to mitigating risks is to be aware of
them, and plan accordingly. Your
N Exchange rates, customs requirements, duties and taxes, and less developed
infrastructures can be challenging to deal with – take time to understand the e-commerce strategy should turn
implications of cross-border shipping to your primary markets. Transport
networks need to be agile to accommodate the new logistics demands. risk analysis into actions – such as
adopting alternative approaches
N Large companies with well-established B2B platforms will find it challenging
to compete with agile, start-up companies. They risk being left behind if they for achieving the same objective,
don’t react quickly to competition from these challengers – while not putting
profitability at risk.
or leveraging the expertise of third-
party partners such as DHL.
N Pricing will present further unique challenges. B2B buyers are used to
negotiating discounts for bulk or repeat purchases with sales reps. If pricing
is to be moved online, B2B businesses will need to consider alternate ways
to incentivize buyers – an easily implementable ‘buy more, pay less’ pricing
strategy, for example, or bulk discounts.
17 B2B’s E-commerce Revolution
NEXT STEPS
Whilst the benefits of B2B e-commerce are clear, you
may be thinking “where do I start?” As explored in this
White Paper, successful investment into cross-border
B2B e-commerce requires the streamlining of culture,
processes, and technology. Your strategy will need the
backing of senior management, collaboration across
business units, and the right mindset across
the organization.
Customer Experience and Customer Service – they are the centerpoint of any B2C business, and B2B should
be no different. Your digital transformation should include simple, flexible, and convenient business processes
for improving customer experience. By combining the best of human and machines, your business can
deliver personalized services via online customer support, and utilize machine learning techniques to better
anticipate customer needs.
Partnering with an international express logistics company like DHL will give your business direct and
rapid door-to-door access to overseas markets, even for smaller batch volumes, providing better conversion
rates of latent demand and the opportunity to differentiate with a premium service offering. Such a partner
also provides several additional indirect benefits, including:
N Brand name recognition, providing credibility and trust for transactions between companies involved
in the supply chain.
N The minimizing of possible financial risks by enabling easy Duty and Tax payment options and
tracking and tracing of products.
N A global network of local partners and certified international specialists with the expertise and local
knowledge to support companies in targeting overseas customers and navigating across borders.
18 B2B’s E-commerce Revolution
Some of the key features that ‘Intermediate’ level B2B Finally, ‘Innovator’ level B2B
almost all B2B customers expect companies should typically have companies have all the features of
even from a ‘Novice’ level B2B all the features of ‘Novice’ level ‘Intermediate’ level companies. In
company are: companies but should also adopt: addition, they:
Our final tip? Once your digital sales platform is live, constantly
review its performance to highlight any weaknesses and help
establish benchmarks by which to set future KPIs. The greatest
B2B strategy you can adopt is this: test, optimize, re-test and
improve. Your buyer is constantly evolving – and you need to
keep up!
Do you sell internationally and state clearly on your home page that you offer
worldwide shipping?
Do you offer online interactive support and product customization with easy
interaction options?
Do you offer multiple payment options like credit card payments, extended
payment and localized payment?
This list is by no means exhaustive but should act as a starting framework by which
to benchmark your own level of e-commerce development.
20 B2B’s E-commerce Revolution
Of course, there are challenges when adopting new B2B Contact our Trusted Advisors today, and begin
digital processes. Even B2B players already established the next chapter of your business growth.
within their sectors will need to invest to optimize their
Disclaimer:
Several sections of this whitepaper are based on the earlier released DHL whitepaper: “THE NEXT INDUSTRIAL REVOLUTION HOW E-COMMERCE IS TRANSFORMING B2B”.
A 2018 DHL Express White Paper by Professor Michael Bourlakis, Dr Denyse Julien, and Imran Ali Cranfield School of Management.
https://www.dhl.com/content/dam/downloads/g0/press/publication/dhl_whitepaper_dhl_b2be_commerce_en.pdf
THE ULTIMATE
B2B E-COMMERCE
GUIDE
THE B2B E-COMMERCE REVOLUTION
A DHL EXPRESS WHITEPAPER