B2B eCommerce – Benefits for your online business | Hypernode

Business-to-business or B2B eCommerce is a business model whereby businesses sell products or services to other businesses through an online platform. The digital processing of orders, payments and shipments allows for more efficiency and transparency. In 2022, the global business-to-business eCommerce market was valued at $20.4 trillion, which is five times more than the business-to-consumer market – this shows that B2B eCommerce has significant potential for growth.
This article defines B2B, expands on how B2B eCommerce works, explains its benefits, and lists examples of B2B eCommerce platforms. If you’re interested in learning more B2B eCommerce, keep reading this article.

What is B2B and how does this work for eCommerce entrepreneurs?

B2B is a transaction or an exchange of products and services between companies. Customers are not part of this model. B2B models allow companies to provide other businesses with products or services that help operations run more seamlessly. For example, a tech company can provide services such as improving an online business’ website, making it more functional. Another example is a wholesale business selling raw materials to other companies manufacturing goods.
In the online context, B2B models enable one business to sell goods or services to another business through an online portal. Companies use eCommerce channels, such as websites and apps, to sell products or services. Entrepreneurs can use eCommerce platforms to search for products or services they need and engage these businesses through the Internet. At Hypernode, we empower online business owners to achieve their goals and achieve the growth they need to keep their online business healthy.

What makes B2B different from B2C in eCommerce?

B2C or Business-to-Consumer is a model where businesses sell products and services directly to customers, instead of other businesses. In eCommerce, this exchange happens online. For example, a music streaming service can provide subscription services to customers, allowing them to access music online without ads. B2B eCommerce requires more research into what other businesses need to make their operations more functional. In comparison, B2C companies often focus more on how their products or services impact the customer. Here are some of the other differences between B2B and B2C eCommerce:

● Product or service utility: B2B and B2C buyers use the products or services differently. For instance, a B2B buyer would purchase raw materials to manufacture other products, so they would need to consult several departments before deciding. However, a B2C buyer would only think about their personal use of the product.

● Buyer mindset: B2B and B2C buyers have different mindsets when purchasing products. A B2B buyer needs to consider how the product will affect the business long-term, so they often do heavier research. B2C buyers make purchases due to emotion or impulse, so they don’t do as much research as B2B buyers.

● Purchase behaviour: B2B buyers must consider several factors when buying from other businesses, so once they identify suitable sellers, they tend to repeat purchases. B2C buyers may purchase products only once.

Benefits from a B2B approach in eCommerce

The business-to-business eCommerce model is growing more popular. In the UK, B2B eCommerce revenue from physical goods was valued at $141.1 billion, with expected sales of up to 167.4 billion in 2025. These figures show that this model can help businesses become more profitable. B2B eCommerce has several advantages that ultimately lead to revenue increments. Here are some of the benefits of a B2B approach in eCommerce:

Increasing brand recognition

B2B eCommerce channels allow entrepreneurs to advertise their products or services without using marketing campaigns. Wholesalers using B2B eCommerce can increase their brand recognition by selling products with their logos so that when retailers resell these products, they act as promoters. This can lead to wholesalers and retailers creating promotional product bundles or forming partnerships with other brands to increase consumer awareness. The improved brand recognition attracts new customers, enhances loyalty and credibility, and increases sales.

Entering global markets

Entrepreneurs can reach global markets by using B2B eCommerce platforms to break geographical boundaries. For instance, wholesale B2B companies can sell products to retailers from different regions or countries, allowing them to target new markets. B2B eCommerce channels also allow businesses to reach customers at any time, so time zone differences don’t affect sales.

A B2B customer in the U.S. can buy products from a B2B seller in Europe because the platforms are accessible 24 hours a day, every day. These platforms can also facilitate purchases in different currencies and allow for product descriptions in multiple languages, making international sales easier.

Reducing costs

Companies often spend money and time on marketing and staffing. Utilising B2B eCommerce reduces marketing costs because B2B buyers act as promoters when reselling products or services. Staffing costs decrease because B2B eCommerce channels automate processes such as ordering and paying for products and services. This automation also makes it more convenient for B2B buyers to acquire products, making it more likely for them to become loyal to B2B sellers, ultimately increasing client retention and improving sales.

Improving inventory and order processing

Using B2B eCommerce platforms automates processes such as performing inventory and processing orders. This prevents over and understocking and helps business owners monitor stock more efficiently. For example, a wholesale B2B seller can sync the company’s order processing system with the inventory monitoring software, so that any time a customer makes an order, the system tracks how much stock remains after the sale. This reduces time wasted on data entry and manual inventory, allowing entrepreneurs to focus on other areas.

Enhancing customer satisfaction

B2B eCommerce channels make it easier for customers to order products, track shipments and make payments. This increased transparency and user-friendliness makes B2B buyers feel empowered and builds trust between them and sellers, leading to improved customer satisfaction and retention. In addition, these platforms improve the speed and efficiency of purchases and deliveries, making sales processes easier for B2B sellers.

Personalising customer experiences

Personalising a B2B buyer’s experience includes giving them tailored product recommendations based on previous purchases, offering targeted discounts and customising prices for wholesale purchases. These factors improve customer retention by giving them a unique purchasing experience. They also increase sales and help B2B eCommerce entrepreneurs remain competitive in the market.

Most used B2B eCommerce strategies

B2B eCommerce strategies aim to make the buyer’s experience easy, efficient, and transparent while improving your sales. Review some of the most used B2B eCommerce strategies below:

1. Conversion rate optimisation

CRO or conversion rate optimisation is the process of increasing the number of visitors who perform a desired action on your platform. Examples of desired actions include making purchases and signing up for subscription services. You can calculate your current conversion rate by dividing the number of conversions (desired actions) by the total number of visitors and multiplying that figure by 100. A conversion rate between 2 to 5% is ideal. You can optimise your website’s conversion rate by:
● making product checkout processes easier
● providing clear product descriptions and prices
● adding a chat function so that customers can ask questions easily
● including call-to-action buttons, such as “Add to cart” buttons
● offering several payment options
● auto-filling shipment details for frequent buyers

2. Email marketing

Email marketing is a tool business use to promote their products or services to existing and potential customers through emails. You can use email marketing to let customers know the business is offering discounts or launching new products. This method incurs low costs and minimal effort but improves brand awareness, builds customer relationships, and keeps clients engaged.
You can improve email marketing by customising the email to the buyer, including a welcome message for new customers, writing engaging subject lines, and providing helpful reading materials.

3. Social media

B2B social media marketing refers to the use of social media to build relationships with customers through the sharing of relevant and engaging content. You can use several social media platforms to share content about how your online business can help other businesses meet their goals. For example, a company providing data analytics tools can post content about how their tools can help other businesses track their spending and monitor their customer’s purchasing habits.
You can also use social media to share customer testimonials and positive feedback, which builds trust and improves your credibility as a brand. Social media also provides a space for entrepreneurs to increase awareness about new product launches.

4. Influencer marketing

Influencer marketing involves collaborating with influential individuals within the industry to increase your brand awareness and enhance the company’s credibility. Research shows that 75% of B2B marketers use influencer marketing, with most of them using this strategy to increase trustworthiness and credibility. You can incorporate influencer marketing as a B2B eCommerce strategy by doing the following:

● Select the right influencers. The influencers you select don’t necessarily need to have a large following. However, their brand, goals and audience should align with yours. Consider building long-term relationships with these influencers to build trust in consumers.

● Create engaging and compelling content. You can work with influencers to create content that educates consumers and promotes engagement with their followers. Examples include asking guest bloggers to write content for your website and helping them create informative social media posts that include a call-to-action.

● Establish goals for your influencer marketing strategy. Make SMART (specific, measurable, attainable, relevant, and timely) goals to increase brand awareness through influencer marketing. These goals can include key performance indicators (KPIs), such as the number of followers you want to gain and the total engagement you receive, including likes, comments, reposts and shares.

5. Search engine optimisation

Search engine optimisation or SEO is the process of improving your website’s visibility for it to rank highly on search engines like Google so that you gain more organic traffic. SEO in B2B eCommerce enables entrepreneurs to reach potential customers and enhance their brand awareness. Here are a few ways to use SEO as an eCommerce strategy:

● Research keywords. Performing keyword research helps you identify the best keywords that your target audience uses to search for specific content. For instance, a business looking for a wholesale business selling garments may use the keyword “wholesale garments”, so using this keyword might help the wholesale business owner’s website rank highly on the search engine.

● Use link building. Link building involves other websites linking to your website. You can build links by asking other websites, such as blog posts, to link to your website, add your website’s link to other websites like business directories and social media profiles, or earn links by creating content on your website like industry-relevant research or online tools, which other websites will link.

● Optimise your website for multiple devices. You can optimise your website for computer, phone and tablet use by compressing images, using clean URL structures and minimizing HTTP requests. These actions allow websites to load faster, creating a more seamless user experience for existing and potential customers.

6. Content marketing

Content marketing in the B2B eCommerce context means creating and sharing content about your online business to promote your brand. You can create content in the form of social media posts, podcasts, blogs, videos, and case studies. Content marketing allows you to build a relationship with your audience, which fosters trust and credibility. Follow these tips to use content marketing as a strategy for your online business:

● Learn your target audience. You need to understand what your target audience needs, so you can tailor content to meet those needs and encourage purchases.

● Create content for audiences at different levels. Your audience consists of existing customers, potential customers ready to buy products and potential customers conducting research, therefore you need to create content to engage each of them.

● Share your content on multiple platforms. Consider posting relevant content on various social media platforms, websites, and emails.

Types of B2B eCommerce businesses

The following are the types of B2B eCommerce businesses you can venture into:

1. Wholesale

Wholesale businesses purchase products in bulk and then sell them to retailers, who then sell them to consumers. B2B eCommerce wholesalers use online platforms to sell products to retailers. If you’re interested in this type of eCommerce business, consider searching for buyer-oriented marketplaces, which consist of several buyers and few sellers.
Usually, buyers visit these marketplaces to identify suitable wholesalers and then make purchases. These marketplaces are an ideal platform to market your products without spending on developing and implementing marketing strategies.

2. B2C

B2B2C or Business-to-Business-to-Consumer is a model whereby manufacturers or wholesalers sell products to other businesses, who then sell to consumers. For example, a company manufacturing products can collaborate with a shipping or delivery service which handles customer relations ranging from ordering items to shipment and payment. This model eliminates the middleman by connecting the business directly with the consumer. An existing example is Amazon, where businesses sell items and customers browse through the marketplace to purchase products.

3. Distributor

Distributors in B2B eCommerce often collaborate with manufacturers through an online platform to deal with the packaging and shipping of items to customers. This model allows manufacturers to focus on making the product, while distributors pay more attention to marketing the product and delivering it to the customer. In this way, it optimises costs for both businesses and speeds up the supply chain, which ultimately leads to increased customer satisfaction.

4. Manufacturer

Manufacturers produce items in bulk and then sell them to wholesalers, who then sell them to retailers. They can also sell these products to other manufacturers. For example, a company manufacturing sweetening syrups can sell them to another company manufacturing juices. The juice manufacturing company can then sell the juices to retailers like grocery shops. Manufacturing businesses can agree on specific production schedules and price points with other businesses to help streamline operations.

eCommerce platforms that support your B2B goals
Explore the following eCommerce platforms that can support your B2B goals:

1. BigCommerce

BigCommerce, a platform that started in 2019, supports B2B eCommerce through several features. These include the multi-storefront feature that allows merchants to operate several stores from one account. They have several pricing plans, with the Standard starting at $29 per month, Plus starting at $79 per month, Pro starting at $299 per month and Enterprise, whose plan you can find out upon request.

2. Shopify Plus

Shopify Plus is a B2B eCommerce platform that began in 2014. It allows merchants and buyers to deal with high-volume purchases. Their starting pricing plan for a one-year term is $2,500 and $2,300 for a three-year plan.

3. Oracle NetSuite SuiteCommerce

Oracle NetSuite SuiteCommerce is a platform that supports both B2B and B2C eCommerce. It has several features that help streamline ordering, purchasing, billing and customer support. Users need to subscribe and pay an annual licence fee, consisting of three components: the number of users, the core platform and the optional modules. You can contact them to get a quote.

4. WooCommerce B2B

WooCommerce B2B is an eCommerce platform that supports WordPress-based websites. Users can sell their products and write blog posts about those products on the platform. Their starting price is $12.42 per month, which is billed annually at $149. Hypernode is a hosting provider for WooCommerce, offering technical support for their B2B eCommerce services.

5. Amazon Business

Amazon Business is a B2B eCommerce platform within the Amazon ecosystem. It allows wholesalers and buyers to interact and process purchases, with shipments occurring through Amazon Prime. They have several packages, including Duo which is free with Prime, Essentials, which costs $175 annually, Small, which costs $499 annually, Medium, which costs $1,200 per year and Enterprise, which costs $10,900 per year.

6. Adobe Commerce

Adobe Commerce, previously known as Magento Commerce, is a platform which offers scalability and customisation. It has features such as custom pricing, advanced data analytics, account management for business customers, customer relationships management and enterprise resource planning (ERP). You can contact them for a customised pricing plan. Hypernode offers hosting services for B2B eCommerce sellers using Magento, so if you’re interested, you can get a free hosting consultation on our website.