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What is b2b ecommerce: explanation and types

Marketing

Written by Niek van Son MSc on September 6, 2021

Niek van Son

Last updated November 20, 2024

What is b2b e-commerce?

B2b e-commerce means the online trade that businesses conduct among themselves. The big advantage of this online business is efficiency. It used to be very common to fax your business order. The salesperson who received the fax then had to see if everything was in stock. Then your order was noted and they went to work on your order. Many wholesalers have discovered that this is a lot faster and easier online.

The global market for b2b e-commerce is huge. According to Grand View Research's study (2022), the value of the b2b e-commerce market was about $7.9 trillion in 2022, and it is expected to grow by just under 20% each year through 2030.

Benefits b2b e-commerce

Manage everything from one place: Using an e-commerce platform as a b2b business gives you the advantage of managing everything through one platform. Think of managing customer data, checking inventory and order processing. In addition, you can further automate your sales process for trading between other companies and suppliers.

Sell more to existing customers: By offering a platform to your current target audience, you as a business have a great opportunity to sell more products through cross-sell and up-sell. For example, by applying marketing automation, you can offer personalized offers to your current customers to make more sales.

Expanding your reach: Besides allowing you to sell more to your current customers, e-commerce also provides the opportunity to find new customers. By using e-commerce platforms and marketplaces, you greatly expand your reach and globalizing your product and/or service is easier than ever before. This allows you to reach new markets and audiences you would never have reached before without e-commerce.

Tracking data: Another great benefit of using an e-commerce platform is that you can track more data from your (potential) customers. You can then use this data to make better choices for your business and perform predictive analytics to determine which leads are most likely to be worth your time.

Type of b2b e-commerce

We can distinguish between four types of companies dealing in b2b e-commerce.

  • B2B2C

Business-to-business-to-consumer (B2B2C) companies themselves deliver directly to consumers. B2B2C companies often partner with another company to reach the same end user. The other company usually handles all customer transactions (platform, customer service, order processing, etc.). For example, consider a company that sells shoes through bol.com. The end user is also often aware that the shoes do not come from bol.com but from the B2B2C company.

  • Wholesale

Wholesalers sell its products in large quantities. Traditionally, these wholesale b2b transactions are often made over the phone, email or order forms. With the rise of e-commerce, wholesalers are increasingly offering the products through an online platform where they can easily display the entire assortment and buyers can easily place their orders through the website.

  • Manufacturers

Like wholesalers, more and more manufacturers are using e-commerce. They use e-commerce platforms to easily display all the products they can manufacture on a large scale on the platform. Other companies that then need the products again to make the final product can then easily place an order here.

  • Distributors

Distributors are using e-commerce platforms so that sales can take place online, creating room for growth opportunities. Using an e-commerce platform creates efficiencies in time for converting a lead to sale. They also provide customers with a better customer experience, which increases the likelihood of repeat customers.

B2b e-commerce platforms

If you want to use e-commerce as a b2b company you will need to use a platform. By using an e-commerce platform, you as a business can also conduct online commerce with other businesses. There are a huge number of e-commerce platform providers. The e-commerce platforms most suitable for b2b businesses include Shopify Plus, Adobe Commerce, BigCommerce B2B edition, OroCommerce, Salesforece Commerce Cloud and eWorldTrade. As mentioned, there are a lot more providers, so this makes it important to see which platform best suits your company's business goals. It is wise to try some demos and read reviews online to make the best choice.

Another option for startups is to offer products through existing e-commerce platforms such as Bol.com and Amazon. The big advantage for these b2b companies is that they can use these e-commerce platform without having to create their own. In addition, you benefit from the reach and traffic on the e-commerce platform's websites.

Software for e-commerce b2b

The basics: ERP

Any successful company in b2b e-commerce will agree that a good ERP system is indispensable. ERP stands for Enterprise Resource Planning. This software combines information from different business units into one system.

Thus, when an order is placed in the Web shop, the product can be made ready for shipment immediately, while at the same time inventory data is updated and financial matters are handled.

The next step: PIM software

An ERP system already makes your b2b e-commerce a lot more efficient. With PIM software, you can then take an additional step.

PIM stands for Product Information Management. This tool is actually the repository for all the information of your products. Think of product texts, translations of these, images, etc.

From your PIM system, you can then export this information again. For example, to your webshop, but also to your accounting system or product feeds for external services such as Marketplace or Google Shopping.

B2B e-commerce tips

As entrepreneurs, we all like to think practically, so here are some more important tips on b2b e-commerce:

  1. Put usability first
    Many b2b Web shops seem created to make it as easy as possible for the selling party. Understandable, but your customer is not directly waiting for an extension of your warehouse. Therefore, take a critical look at the usability of your shop.
  2. Optimize your product feeds
    Do you sell products through Google Shopping? Then it's good to know that you can optimize your product feeds for this. Think for example of good titles and descriptions, sufficient product information and the diagnostic functions in the Merchant Center.
  3. Take a look at your "About Us" page
    Trust is an important aspect of online sales, including b2b e-commerce. That trust is easy to gain in a personal conversation, but a lot harder on a website. An excellent opportunity for this is the "About Us" page on your website. Show who you are and lower the threshold for new customers.

Resources

Grand View Research. (2022). Business-to-Business E-commerce Market Size, Share & Trends Analysis Report. https://www.grandviewresearch.com/industry-analysis/business-to-business-b2b-e-commerce-market

Niek van Son
THE AUTHOR

Niek van Son MSc

Marketing Management (MSc, University of Tilburg). 10+ years of experience as an online marketing consultant (SEO - SEA). Occasionally writes articles for Frankwatching, Marketingfacts and B2bmarketeers.nl.

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