B2B businesses are increasingly enticed by the appeal of B2B e-commerce platforms, which unlock powerful analytics, feed them real-time customer data, connect tools and sales channels, and even help to re-energise customer experience (CX). 

Like just about every trend in the digitalisation space, B2B e-commerce shot up in the wake of COVID-19. At a time when many offices, wholesale stores, depots, and warehouses had to close, or severely limit the number of people allowed on site, B2B e-commerce helped keep other sales channels open. But B2B e-commerce isn’t just a pandemic fad that’s fading out as we return to “normal.” On the contrary, as 2022 continues, we’re likely to see even more B2B businesses moving to e-commerce platforms. Here’s what’s fueling that shift, and why it’s not likely to go away any time soon.

The rise of the ‘business consumer’

B2B buyers are also consumers, and the line between the two personas is becoming increasingly blurred. Today, everyone is used to the personalisation, fast response times, self-service ordering experience and ease of comparison that they enjoy when shopping online, and we want the same experience in our work lives. 

It’s even more true for millennials, the first digital-native generation, who make up a greater percentage of B2B buyers every year. Research by Gartner found that 44% of millennial business buyers want a seller-free sales experience, compared with 33% of buyers from other cohorts. 

That preference was only strengthened by the pandemic. After several months of shopping only, or primarily, online, B2B customers lack the patience for phone calls, RFPs, email threads, and in-person meetings. 

With an e-commerce platform, B2B businesses can offer a personalised customer journey, range of payment methods, and transparent pricing and stock information that the business buyer of today and tomorrow craves. 

The growth of omnichannel sales

Another way in which B2B sales trends are mirroring those of B2C is the growth of omnichannel sales, with McKinsey reporting that 83% of B2B leaders see omnichannel driving more leads and sales than traditional approaches. Buyers expect to be able to switch effortlessly between channels without anything disturbing their shopping experience, whether they’re buying a smartphone, office supplies or a CRM solution. 

B2B e-commerce streamlines omnichannel sales, making it possible to connect and manage all your channels from a central operating hub. It also supports automation, so you can ensure that prices, stock levels, and delivery times are accurate, adjusted in real-time, and consistent across every channel, no matter how often they fluctuate. 

The increasing complexity of B2B sales cycles

B2B sales journeys are growing more complex all the time, with different pricing structures and bundled features. Additionally, B2B buyers are following the trend of consumers and demanding more personalised solutions and product suggestions, which requires rich customer data, powerful analytics, and encyclopedic resources documenting every product feature and the pain point it comes to resolve. 

It’s extremely difficult for human employees to meet these expectations, and even harder for them to do so within the short timeframe that buyers demand. 

B2B e-commerce platforms can track customer behaviour, crunch data to understand customer needs, and integrate those insights with data about inventory levels and competitor pricing and offerings to produce timely, relevant customer recommendations even about complex bundled products with dynamic pricing. 

The precarious supply chain

The supply chain crisis of 2020-21 may have been sparked by the pandemic, but it wasn’t created by it, and it’s not going away with the development of vaccines. Now that COVID-19 has thrown a spotlight over the systemic flaws in the system, they are impossible to ignore.  What’s more, things might get worse. Successive variants continue to disrupt shipments in unexpected ways, and Forrester predicts that  “shortage” will be the name of the game in 2022. 

As components, raw materials, and finished products all risk being hard to find at crucial times, shipment routes have to change quickly. With market conditions fluctuating, B2B businesses will need to be able to react fast. 

The superior data and analytics delivered by e-commerce platforms offer visibility into customer preferences and purchase history, supporting improved demand forecasting, while also giving insight into logistics performance so sellers can choose better shipping partners. It also gives B2B buyers transparency into stock levels, shipping times, and real-time pricing, helping avoid the frustration of having to make changes after placing an order. 

The ‘great resignation’

Between the “great resignation,” an ongoing shortage of digital talent, and so many fatalities and long-term disabilities due to COVID-19, there are gaps in the workforce that are likely to continue to go unfilled for a long time to come. Just like many other verticals, B2B businesses are feeling their impact and need ways to plug the holes. B2B e-commerce is one such solution. By automating many time-consuming sales tasks, B2B companies can assign human employees to tasks that can't be replaced by automation or robotics. At the same time, automation helps to reduce the risk of manual errors and speed up transaction times. 

B2B e-commerce platforms could save the day in 2022

With B2B businesses facing more, not fewer, challenges in 2022, the adoption of e-commerce platforms is only likely to accelerate. By helping enterprises cope with multichannel sales and marketing, a fractured supply chain, labour shortages, complex sales, and changing buyer expectations, e-commerce platforms are likely to play an ever more important role. 

Up to $15 billion is expected to be spent by brands investing in influencer marketing by 2022. Influencer marketing brings a significant boost to many industries, and many B2B and B2C businesses now rely on influencers to extend their reach. This trend doesn’t exclude the fintech industry, and many digital banks, including Starling and Revolut, now use influencers in their marketing strategies. However, using influencer marketing requires careful thought, and there are certain rules regarding its use, which need to be considered carefully by fintech companies.

Fintech companies can benefit from influencer marketing

So long as the influencers are chosen to suit the niche, influencer marketing can be as beneficial to the fintech industry as it can to any other business. Influencers have the power to improve a business’s reach and visibility, demonstrate authority and target the right audience immediately. This is a valuable asset to any business operating in the fintech niche, but to be used to full effect, businesses need to choose an influencer whose lifestyle and message coincides with the brand’s ethos. Potentially, when used well, this gives fintech companies a chance to reach a much wider audience than they can through traditional advertising. However, although advertising standards authorities have guidelines for influencers, none of them relate specifically to financial products or services, which means those working in the niche need to tread carefully.

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Advertising regulations for influencers

Advertising guidelines state that influencers should use ‘#ad’ to tag any post they’re paid for: this is the minimum an influencer needs to do to legally promote a product or service. They are required to consider the demographics of their audience, as age-restricted products must not be promoted to underage followers. Although this rule doesn’t apply directly to financial products and services, companies and the influencers they work with must be aware of the demographics of the audience, as many financial products do come with age-related criteria.

Lack of regulations for financial services

There are no regulations for fintech companies using influencer marketing, but this is problematic because the majority of an influencer’s reach extends to a young audience. Advertising guidelines are currently focused on influencers labeling ads rather than on the products and services they’re promoting. For regulations to be established, close co-operation would need to be achieved between the advertising and financial regulators, but this has not happened yet. While this may be good news for fintech companies who can find influencers willing to promote their products, it’s more problematic for the consumer. The ideal situation would be that influencers truly believe in the companies they’re promoting. However, the algorithms on social media make it difficult to know for certain whether influencers or the brands they work with are operating with a full awareness of what they’re promoting. Consumers, therefore, are urged to research all products promoted by influencers before making a commitment.

Influencer marketing is one of the most successful marketing strategies any business can employ, but regulations are minimal. This is particularly problematic in the financial sector, as there are ethical considerations to be aware of in the promotion of any financial service or product. Consequently, although influencer marketing is a valuable tool for a fintech company, consumers must be wary when choosing products promoted by influencers. However, providing consumers conduct independent research, influencers can be helpful in informing them about new financial products.

eCommerce is booming and it looks like it’s here to stay, with some 24 million sites across the globe selling an array of products and services. There are many factors that have led to this phenomenon — from ubiquitous connectivity to the ease of building a website, right through to the millennial desire for more flexible, remote working arrangements. Plus, there's the added attraction of being your own boss from the outset. There is no doubt that the future is looking rosy for e-commerce. Nasdaq research indicates that by the year 2040, around 95% of all purchases will be online. The question isn’t if or when, but how to open an e-commerce business that can grant you the biggest gains for your investment. Below, Karoline Gore shares her advice with Finance Monthly.

B2C or B2B?

The two most common e-commerce business categories are B2C (companies selling items to individual consumers) and B2B (those selling to other businesses). Each has its upsides and downsides. For instance, practically anyone with an enterprising mind and a good business plan can set up a B2C business, since you can keep costs and production low until demand deems it is time to step up your game (and your investment). On the other hand, competition is high in this industry and your team has to be solid (and big) enough to answer questions quickly, deal with customer complaints, and the like. With B2B, orders are likely to be large but may be less frequent. B2B also imposes a stronger pressure on companies to lower profit, since other companies will undoubtedly aim to attract your clients with more attractive prices.

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Thinking Out of the Box

If you have a product that is in high demand or you find a niche market for something you are selling, it is key to utilise a model that will boost customer loyalty so you can have a sustained income while thinking of how to expand or broaden your target. One that is working quite well is subscription boxes. Within a period of just four years, this market expanded by an impressive 890%. If you are thinking of launching a subscription company, ask yourself if you can deliver goods on time, do so regularly, and include something that gives your clients real value. This could be an item that is difficult to access (such as a designer or bespoke piece), a discounted item, or a new product to discover. When calculating costs, don’t just think of the goods and packaging. but also of those involved in website and brand design, web hosting, and incorporation fees.

What Companies are Achieving Success?

Some of the most successful e-commerce businesses to date are following one of a select group of models, including dropshipping. Many startups choose to work with this model via Amazon, but competition in this marketplace is tough. It might be a better idea to use a platform like SaleHoo, Spocket, or Oberlo. The latter, for instance, will allow you to see how many page views, sales, and star rankings items have. Other successful models include private labelling (you order the product you develop from a manufacturer then brand, develop and sell it); and wholesaling (to private customers and other businesses). The model you ultimately choose depends on your target market, the nature of your product, your budget, and your short- and long-term goals.

Some of the most successful e-commerce businesses to date are following one of a select group of models, including dropshipping.

Finding Inspiration

Top e-commerce companies that started small may provide you with the inspiration you need. Take a model as seemingly simple but brilliant like Beer Cartel — a craft beer service that introduces urbanites to unique bottles from all over the world. See how sustainability and profitability can work hand in hand in companies like Bundle Baby, which makes eco baby diapers in the cutest colors and prints imaginable. Think of how the founders of Bella Bean Organics used their own farm-made products to enlighten gourmets on everything from homemade pasta to flavor-packed tomato sauce or traditional toffee treats.

The market for e-commerce is so wide that making your mark on it will involve research, vision, and commitment. Do your research before starting, so as to identify market and demand. Opt for a model that is going strong. Finally, put love and care into every aspect of your business, including your branding, social media, and packaging.