WHAT IS B2B E-COMMERCE?

WHAT IS B2B E-COMMERCE

The Internet allows companies to increase their prospect pool. Loud online presence grants access to many more potential consumers and partners than traditional advertising models. According to statistics, over 90% of product researches on B2B level start with search engines. So, the Internet becomes an essential trade channel for B2B e-commerce examples.

EDI (stands for electronic data interchange) is a paperless highly efficient way to send various documents between companies (such as purchase orders and invoices). EDI lets businesses exchange information using a standardized format. It is generally used to help streamline the communication and build efficient workflow between a manufacturer and its supply chain.

In retail industry, EDI helps cut costs while still maintaining a high level of customer service.

EDI is not to be confused with a web store, however. Just like business to consumer and business to business e-commerce platforms, EDI and web stores serve different purposes. EDI is a more efficient way to handle communication between organizations regarding the recurring orders of standard goods, while a web store is more efficient when it comes to incidental purchases that do not need to be fully automated. Web stores are usually better for promoting new products to clients and exploring cross-selling and upselling options.

THE BENEFITS OF INTEGRATED B2B E-COMMERCE CONNECTED TO ERP

Integrated e-commerce is a system organization that uses business logic and data from your ERP (and potentially other systems) to increase the performance of your online store.

Integrated web store software dips directly into your ERP system, which helps avoid complex connections and enables it to gather data directly offering a number of important benefits, such as:

• Product catalog, that updates automatically and is always current

• Custom pricing options

• Drastically reduced possibility of human error during order processing

WHAT IS PIM AND HOW IS IT BENEFICIAL FOR YOUR BUSINESS TO BUSINESS E COMMERCE SYSTEM?

PIM systems enrich ERP product data by categorizing and unifying product data. The result can be used in your business to business in ecommerce in order to make sure your product pages provide complete and comprehensive data.

Product information management (PIM) systems give a huge advantage for B2B ecommerce stores by allowing them to provide more detailed product specifications.

A company would make great digital marketing efforts to evolve into a strong brand. There are many articles and training courses dedicated to online promotion and SEO, but all efforts would be in vain, if a prospective partner leaves the page in a few minutes, because the website itself is “inconvenient”. If a visitor is confused from the first minute of being on the website, all other benefits - a company offers may fade from the view.

Business to business in ecommerce is an online business model with flexible enterprise software as a ground solution for purchasing, selling and promoting services, information, or products.

In B2B e-commerce examples, the ecommerce technology can become a critical success factor. The website must represent your business well, be user-friendly, and allow prospective buyers to get the information they've been searching for. This raises a question about the right choice of business to business ecommerce software.

WHY IS B2B E-COMMERCE SOFTWARE IMPORTANT?

With the advancements in digital technologies and especially the internet, more and more businesses are transferring their services and products into online field. Therefore, the company that is hesitant to invest in the digital expansion is going to be behind any competition. Only with the internet, it has become possible to attract a broader range of customers and to sell products way beyond the business hours of one’s company. If you are a manufacturer or distribution business and you’re not putting money into B2B e-commerce platform, this will result in you – losing revenues and potentially becoming a bankrupt failing to get the customer base. With convenient applications, three-quarters of the B2B customers find it very convenient to purchase a product from the website rather from a sales rep. The majority of the nowadays workforce is represented by millennial generation, which tries to take easy approaches in embracing ecommerce business models and expanding their stores into new broad digital markets.

WHAT IS B2B E COMMERCE OMNI-CHANNEL STRATEGY AND HOW TO CREATE IT?

1. Consider the configuration of the products. B2B ecommerce solutions previously could not offer good sales for complex products and services. Now you don’t even have to worry about it as these solutions have expanded their functionality by offering different marketing tools, products filters, and configurations. The first thing you are required to do is to make the strategy with the help of which you will categorize your products. If some of your products are more sophisticated than others, consider hiring a sales representative.
2. Consider Customer Buying Behaviors. It is a much better practice to trace customer buying behaviors and their usage of various selling channels. With this crucial information, you can increase your conversion rate as well as optimize your marketing solutions by highlighting prioritized products.
3. Buying Phase – Channel Connection. You need to clearly connect each of the buying phases with your available channels. With the direct effort put into this, you can greatly increase your conversion rate. Consider researching about how clients engage in product reviews, how they ask questions, and how orders, renewals and new purchases are treated.
4. Do not put away a channel conflict. Clarify the rules with any of the partners you may possibly have. Always ensure that there will be a minimal amount of misunderstanding between your partners by increasing the quality of your products and executing reordering activity with the help of the sales representative quotas.

5. WHAT IS EDI AND WHY IS IT USEFUL FOR BUSINESS TO BUSINESS ECOMMERCE?

6. EDI (stands for electronic data interchange) is a paperless highly efficient way to send various documents between companies (such as purchase orders and invoices). EDI lets businesses exchange information using a standardized format. It is generally used to help streamline the communication and build efficient workflow between a manufacturer and its supply chain.

   In retail industry, EDI helps cut costs while still maintaining a high level of customer service.

   EDI is not to be confused with a web store, however. Just like business to consumer and business to business e-commerce platforms, EDI and web stores serve different purposes. EDI is a more efficient way to handle communication between organizations regarding the recurring orders of standard goods, while a web store is more efficient when it comes to incidental purchases that do not need to be fully automated. Web stores are usually better for promoting new products to clients and exploring cross-selling and upselling options.

   THE BENEFITS OF INTEGRATED B2B E-COMMERCE CONNECTED TO ERP

   

   Integrated e-commerce is a system organization that uses business logic and data from your ERP (and potentially other systems) to increase the performance of your online store.

   Integrated web store software dips directly into your ERP system, which helps avoid complex connections and enables it to gather data directly offering a number of important benefits, such as:

   • Product catalog, that updates automatically and is always current

   • Custom pricing options

   • Drastically reduced possibility of human error during order processing

   WHAT IS PIM AND HOW IS IT BENEFICIAL FOR YOUR BUSINESS TO BUSINESS E COMMERCE SYSTEM?

   

   PIM systems enrich ERP product data by categorizing and unifying product data. The result can be used in your business to business in ecommerce in order to make sure your product pages provide complete and comprehensive data.

   Product information management (PIM) systems give a huge advantage for B2B ecommerce stores by allowing them to provide more detailed product specifications.

Top Tips for Selling from B2B

Running a business-to-business (B2B) operation is naturally different than selling directly to consumers. Many of the lessons learned in the consumer market simply don't apply, but B2B entrepreneurs may not know exactly how to tailor their sales approach to a business customer.

Sales nurturing is a crucial part of B2B sales representatives' responsibilities. While the buying process for companies and consumers shares some similarities, they truly require a different approach on the part of a sales force. If you want to ramp up your B2B operations, it's important to consider your buyers and how they make a buying decision. Only by tailoring your sales pitch to their buying process can you find success. Here are some tips to help your B2B company thrive, including some common mistakes to avoid. [Read more about how software can help the research process and how the best CRM for small business can help leverage that research]

What is B2B?

A B2B company is simply a business that provides needed goods or services to other companies. These include digital marketing companies, an e-commerce platform, co-working spaces and team communication platforms. Basically, any business that caters to other businesses is a B2B company.

In some cases, a business might have both B2B and business-to-consumer (B2C) operations. It is not uncommon, especially for larger companies, to maintain multiple types of businesses under one brand. For example, Dropbox offers cloud-based document storage to both individuals and businesses. Just because a company has B2B offerings does not mean it is exclusively B2B.

One of the clearest examples of a B2B market is automobile manufacturing. While most people are familiar with leading vehicle brands as consumers, most manufacturers also supply businesses. A prime example is the evolution of Jeep, which was initially made for the U.S. military but ultimately became a popular make of vehicle in the consumer market. There are also automobiles made exclusively for commercial use, such as Mack trucks.

What are B2B customers?

Who are the customers of a B2B company? Simply put, they are other businesses that need the support a B2B company offers, whether in the form of products or services. Take, for example, the co-working space WeWork. WeWork's spaces house a range of businesses small and large. In this case, the businesses renting space in a WeWork office building are the B2B company's customers.

The interesting part of B2B companies is that a business can at once be customer and partner. In the example of WeWork, an office furniture company might rent a co-working space. However, WeWork might also purchase furniture from that company to furnish its space. In this hypothetical example, both B2B companies are buying from and selling to one another.

The buyer's journey for a business is often much different than that of a consumer. A B2B sales strategy should be adapted accordingly to suit the potential customer's decision-making process. Both marketing and sales to another business are often different, requiring a different approach to the sales pipeline and creativity from B2B company marketing teams.

How are B2B sales different from B2C sales?

The sales process for a B2B company's products and services can be vastly different from marketing to individual consumers. Generally, a B2B sales rep deals with a higher-level individual within a company, someone who has influence or decision-making power over the purchasing decision. These decision-makers are generally well versed in negotiation and eager to make deals, looking to secure the best price for their company. They are trained on how to research markets and find the best product or service as well as secure the best price.

Typically, B2B sales require an additional level of professionalism when compared with the consumer market. In some cases, a B2B sales rep might be required to deliver a presentation to another company's executives. It's important that a B2B salesperson does their homework and has all the answers before the first meeting. After all, time is money, and it could be impossible to secure a second call or meeting opportunity.

In B2B sales, recurring business opportunities are the Holy Grail. While in the B2C market (depending on your business) recurring sales are nice, they are the lifeblood of any B2B operation. If you can secure several large accounts that repeatedly come back to your B2B company for goods and services, your revenue stream will often be stable and healthy. Your B2B sales force should be focused on cultivating relationships that will be longstanding and mutually beneficial.

However, unlike the B2C market, B2B sales tend to be more narrowly focused on a specific industry or type of business. That means sales can become even more competitive than when marketing to individuals. Still, landing a B2B sale can be far more lucrative than landing a single B2C sale.

Five ways to improve your B2B sales process

1. Rely on research instead of cold calls

Cold calling used to be a favorite lead generation tactic of B2B operations. It made sense when it was harder to gather information on clients. However, today it's relatively easy to research whether a potential client can likely be converted to a sale, how profitable they could be and what the common needs are within their industry.

It's wise to identify more than one real, tangible business reason for meeting with an account before doing so. Remember, your time is valuable, and prioritizing the clients you meet with could be the difference between booming business and flagging sales. A final sale can often be determined in the information-gathering stage, so don't skimp on your background research.

2. Look for opportunities to qualify leads

Once you've done your research and decided to engage with a potential client, it's important to continue to qualify your leads as you being to engage them. How can you help support this business, and do they have the means required to secure your services?

Doug Burdett, founder of Artillery Marketing, suggests taking the GPCT and BANT approaches to qualifying a lead. These involve ascertaining the goals of a business, understanding and helping them craft their plans, identifying the challenges they face, and working within their intended timing. Further, you should determine whether they have the budget necessary to solve their problem, identify the people within the company with the authority to make purchasing decisions, find out if there is a specific need that your business can address, and provide an actionable timeline for completing your solution.

3. Don't reduce your interviews to "sales calls"

When trying to secure the business of a B2B customer, you're not engaging in a "sales call." This term suggests a more B2C type approach and can appear unprofessional or undignified when working with companies. Instead, present your meetings as interviews; you might prepare a questionnaire ahead of time to better understand your leads' needs and goals. Your potential clients are seeking out your help because you offer expertise in whatever vertical you serve. Finding a way to demonstrate that expertise while learning more about the client is a great way to impress them and boost your chances of landing a deal at the end of the day.

4. Don't be pushy or aggressive

The old sales mentality of constantly trying to close a deal is generally not the best approach in the modern B2B environment. According to Accenture research, 71% of buyers prefer to conduct their own research and then access a sales representative remotely. That means you're not likely to schedule a face-to-face, and most buyers will come to you with information gathered.

While you can help educate them on the nuances of your services, you won't often be teaching anybody the basics for the first time. Differentiating yourself in the marketplace is key, and then nailing that first point of contact – by qualifying your leads and making your value propositions apparent – is what will close your sales. Pushiness and aggressive salesmanship will not win the day; availability of information and a consultative approach are much more effective.

5. Remember that B2B customers, ultimately, are people

Just because you are selling products or services to a company doesn't mean you're not dealing with people. Beyond the very important aspects of a potential client's challenges and how you will help the client solve them, it is also important to leave a positive personal impression on the individual charged with selecting a solution.

The best B2B salespeople will take the time to understand a decision-maker's likes, dislikes and the other complex layers of their personality. Many business people live by the mantra, "first you know somebody, then you like them, and then you do business with them," so remaining cordial and warm is as important as being strategic and factual. By combining a clear value proposition, a helpful and consultative approach and personal likeability, your B2B sales should virtually close themselves.

What is B2B online Business

B2B Online
If you often read business publications or frequent professional forums online, you've likely come across the abbreviation "B2B." What is B2B, exactly? It simply means "business to business," which refers to any company focused on selling products or services to other businesses rather than to consumers.

What is a B2B company?

B2B companies are supportive enterprises that offer the things other businesses need to operate and grow. These include businesses like payroll processors or industrial suppliers. This is in contrast to business-to-consumer (B2C) models, which sell directly to individual customers, and consumer-to-business (C2B) models, in which an end user creates products or services for a business. B2B companies have an entirely different target audience: They offer the raw materials, finished parts, services or consultation that other businesses need to operate, grow and profit.

Examples of B2B companies

There are B2B companies in every industry, from manufacturing to retail. Wherever business is done, you can be sure a host of B2B suppliers and advisory firms are active. Every B2C company requires certain products, services and professional counsel, so every B2C company generates B2B activity.

One example of a traditional B2B market is in automobile manufacturing. Everyone knows some of the biggest consumer-facing brands, but in every model of car or truck they produce are dozens of other companies' products. These include the tires, hoses, batteries and electronics that are essential for the final consumer product – the vehicle – to operate properly. The manufacturer purchases these products from its various suppliers and incorporates them into the final product. When you buy a car from one company, you're purchasing parts that were created by dozens, if not hundreds, of other businesses from all around the world. Business-to-business sales are a vital part of every industry's supply chain.

Examples of real-world B2B activity are plentiful and more visible than you might guess. For example, the cloud-based document storage company Dropbox serves businesses as well as individuals. General Electric makes plenty of consumer goods, but it also provides parts to other enterprises. Perhaps you've worked at a company where the paychecks were stamped by ADP, a company that provides payroll and financial services for businesses. Xerox is a household name but makes billions providing paper and print services to businesses.

How to develop a marketing plan for a B2B company

Marketing and branding B2B products or services requires a unique approach. Unlike with B2C companies, the target audience isn't a consumer at all, but another company. That means B2B marketers must speak directly to those in charge of the decision-making process. Driving sales means understanding another company's business processes and developing a business-specific strategy with your sales team to turn potential customers into buyers.

Devising B2B marketing campaigns requires some careful planning, said Brent Walker, vice president and chief marketing officer at healthcare marketing firm C2B Solutions.

"B2B typically relies on its sales function and account management team to establish and strengthen customer-client relationships," Walker said. "Marketing may include advertising in trade journals, having a presence at conventions and trade conferences, digital marketing – an online presence, SEO, email outreach – and other traditional awareness efforts."

While the methods might be similar to those of B2C companies, the messaging and branding is often different. Rather than speaking to a consumer's desire to get something new, fun or convenient, B2B companies face the challenge of convincing company decision-makers that their products or services will yield a return on investment. For some B2B companies, such as digital marketing firms that specialize in content creation and social media management, this can be a tough sell; this type of work doesn't produce immediate results, so making the sale requires educating potential customers. That's where a knowledgeable sales team comes in.

The key to B2B marketing is demonstrating value to a business's bottom line. If your solution streamlines processes, focus on the efficiencies your potential customers could gain. If your services increase traffic to a website or boost conversion rates, highlight the potential for added revenue. In business, it all comes back to profitability: If you can make the case that your products or services will enhance the bottom line, landing the sale becomes much easier.

Digital B2B companies

The rise of B2B e-commerce solutions has redefined the relationship between businesses and suppliers. A product of the digital revolution, these businesses sell products directly to other companies using e-commerce platforms, as well as sharing data and updates about products or services. There are many types of B2B e-commerce companies, but three of the most common are web development, supply and procurement exchanges, and infomediaries.

Web development

Every business needs a website, but few business owners have the time or skill set to build an optimized site from scratch. Web development companies (and, more generally, digital marketers) are B2B services that handle the creation and maintenance of company websites, plus other digital advertising services like content creation and search engine optimization. These services are indispensable in the ever-expanding digital environment that dominates the modern business landscape. Though web development companies didn't exist until a few decades ago, they've become essential partners for any business that wants to get off the ground.

Supply and procurement exchanges

Otherwise known as e-procurement sites, these companies serve a range of industries and often focus on a niche market. A company purchasing agent can shop for supplies from vendors, request proposals and even make bids for purchases at specific prices. These B2B websites enable the exchange of product supplies and procurement.

Specialized or vertical industry portals provide a subweb of information for a specific industry or vertical, such as healthcare, construction or education. These sites provide product listings, discussion groups and other features. Vertical portal sites have a broader purpose than procurement sites, though they may also support purchasing.

Brokering sites fulfill companies' supply and procurement needs in another way. These sites act as an intermediary between service providers and a potential business customer. For example, a construction company may need to lease equipment. A broker site can help the construction company find an equipment manufacturer that is willing to lease out the needed equipment. Brokering sites and services include the Neostratus B2B Cloud Brokerage Platform and Axway B2B Integration.

Infomediaries

There are also information sites, or infomediaries, which provide specialized information on specific industries for companies and their employees. These specialized search sites are often used as trade and industry standards organization sites.

No one-size-fits-all

Though B2B is critical to the success of many industries, when considering your company's potential, do not limit yourself to one model. B2B, B2C and C2B models need not be mutually exclusive: Combining their particular strengths can generate new opportunities for your business.

"A business can package consumer insights and consumer-centric solutions to sell or provide as a value-add to its business customers/clients," Walker said. "In a consumer-driven marketplace, such a service can be extremely valuable to a business."

If you want to get into the B2B market but don't know where to start, visit our list of suggestions for B2B business ideas.