The B2B eCommerce industry has been growing exponentially in the past years. The market was valued at $7,907.07 billion and it’s only getting better, with an expected Compound Annual Growth Rate (CAGR) of 20.2% from 2023 to 2030. Before you start your B2B online store, there are a couple of basics you should know.
What is B2B eCommerce?
B2B eCommerce refers to a business selling a product, service, or software to another business through a digital medium. Moving to a B2B eCommerce set-up can be viable for B2B businesses because it greatly reduces cost and provides bigger opportunities for scalability.
What are the types of B2B online stores?
This stands for Business To Business To Consumer. This business usually exists to bridge the gap between a business and a consumer. Marketplaces like Amazon and food ordering applications like DoorDash are great examples of this. Both of these applications are businesses that exist to connect businesses to consumers.
In this model, the business buys products in bulk from a distributor at a lower price and sells them to other businesses in bulk at higher prices. Alibaba is a good example of this.
As the name suggests, manufacturers make their products and sell them to other intermediaries like suppliers, wholesalers, or manufacturers. They may be producers of parts and items that are essential to products. Sometimes, they can opt for selling directly to consumers while selling to businesses as well.
Distributors are another middlemen that make the distribution process easier. They usually partner with manufacturers to provide a seamless packaging, fulfillment, and delivery experience, or help with other processes.
What are the advantages of a B2B online store?
If you’re a B2B business, here are all the advantages you can earn by expanding into a B2B online store:
1. Higher order value
Businesses that use B2B online stores are more likely to place bigger orders to save on shipping and transportation costs.
2. Improved efficiency
B2B online stores have options like Enterprise Resource Planning (ERP) software that can streamline your business by eliminating redundant processes and increasing efficiency. It can help your employees focus on their work and boost productivity as well.
3. Wider reach
With a B2B online store and a splash of good SEO, the world is your oyster. You can tap into international and untapped markets. When you add a B2B online store, your website is your salesman 24 x 7, 365 days a year, which expands your business’ capability.
4. Increased sales with reduced costs
Due to the global reach and your website’s constant availability, your sales have the potential to increase. You can further boost sales with features like cross-selling and up-selling. And you do all this while saving on labor and operational costs.
5. Increased brand recognition
When you form a strong online B2B store, you increase brand recognition with greater visibility and a better reputation. You can provide business reviews to increase brand trust and strengthen your position as a brand in the B2B online space.
6. Enhanced customer experience
A B2B online store can be incredibly beneficial to the customer experience because you can tailor it with content like videos and augmented reality to help them understand your business and your product. You can also have features like chatbots to answer your customer’s questions ASAP instead of keeping them waiting. You also have the option to provide tracking and order history for a smooth customer experience.
7. Analytic capabilities
Integrating your B2B eCommerce business with ERP software provides you with detailed data analytics that helps you make business decisions with razor-sharp precision. You can identify the areas where you’re excelling and the places you can improve.
Kentro is your all-in-one solution for your B2B eCommerce business
Starting and running a B2B eCommerce store is easier than ever with Kentro! Kentro helps you manage your marketplace with increased convenience. It’s a comprehensive solution that handles every aspect of your business, from inventory tracking to order management, accounting automation to supply chain management, and so much more! We help you streamline your B2B eCommerce store operations so you can focus on what matters. Book a free demo with us today to set your company up for long-term success.