The Ultimate B2b E-commerce Guide

THE ULTIMATEB2B E-COMMERCEGUIDETRADITION IS OUT, DIGITAL IS IN.A DHL EXPRESS WHITEPAPER

2The ultimate B2B e-commerce guideTHE B2B REVOLUTION IS HERE.ARE YOU READY?The B2B world is undergoing a period of intense transformation.Traditional methods of B2B operations – from sales to customerinteractions; from fulfilment to order delivery – are changing rapidly.And while the B2B world was already moving online, COVID-19accelerated the process, meaning B2B transactions are becomingmore data-driven and less dependent on traditional one-to-onesales activity.2020 brought with it great challenges, which exposed the need for B2Bsupply chains to be more flexible. New, digitally-focused ways of doingthings were brought in, and now their benefits have been felt, won’t begoing back. In addition, changing demographics habits mean that millennialB2B decision-makers are further driving the digitalization of the sector asthey seek customer experiences more aligned with their B2C (business-toconsumer) experiences.It’s a paradigm shift for the industry, and B2Bbusinesses who want to make the most of crossborder opportunities will need to adapt tothese changing buying behaviors – andfast. We’ll show you how.1 - Brian Beck, Tech Bullion, December 2020, es-for-2021/“ THIS CRISIS [COVID-19]IS WIDENING THEDIGITAL DIVIDE AMONGTHOSE WHO MADEEARLIER INVESTMENTSIN E-COMMERCE ANDTHOSE THAT DIDN’T.SOME OF THOSETHAT DIDN’T, WON’TSURVIVE.”Brian Beck, Managing Partner of Enceiba1

3The ultimate B2B e-commerce guideWHAT IS B2B E-COMMERCE?B2B e-commerce, or business-to-business electronic commerce,describes order transactions between businesses via an onlinesales portal.A SNAPSHOT OF GROWTHOPPORTUNITIES2In 2019, global sales onB2B e-commerce sites andmarketplaces jumped 18.2% toreach US 12.2 trillion, outpacingthe B2C sector.In general, B2B e-commerce is used to advance the performance of acompany’s sales efforts; because orders are processed digitally, buyingefficiency is improved for wholesalers, manufacturers, distributors,and other types of B2B sellers.Forrester predicts the US B2Be-commerce market alone willreach US 1.8 trillion and accountfor 17% of all B2B sales in thecountry by 2023. And this waspre-COVID-19 Emerging e-commerce technologies are reducing the barrier to entry fortraditionally B2B companies to remove the middleman and sell direct-toconsumer (B2B2C).THE CHANGING B2BCUSTOMERThink you know your typical B2B customer? Well, it could be time torethink. New technologies may be aiding the digitalization of the B2Bsector, but this has also been driven by the evolving demographic ofthe “average” B2B buyer.As with B2C, it’s important to remember that there isreal person at the end of every B2B transaction. Theirpurchasing decisions are influenced by many of the samefactors that drive B2C customers, which means they alsoexpect the same customer experience throughout theirbuying journey.aResearch by Gartner found that44% of millennials prefer no salesrep interaction at all in a B2Bpurchase setting, and projectsthat by 2025, 80% of B2B salesinteractions between suppliersand buyers will occur in digitalchannels.32a - Statista, “In-depth: B2B e-Commerce 2019”, August 2019, rt-b2b-e-commerce/2b - Forrester, “US B2B e-commerce will hit 1.8 trillion by 2023,” January 2019, https://bit.ly/3cOl0Fx3a - Gartner, “Future of Sales 2025: Deliver the Digital Options B2B Buyers Demand,” December 2020, https://gtnr.it/3sbRRu43b - Gartner, “Future of Sales 2025: Why B2B Sales Needs a Digital-First Approach,” September 2020, https://gtnr.it/3d0lSH9

4The ultimate B2B e-commerce guideMEET YOUR NEW B2BCUSTOMERS: THEMILLENNIALSMillennials, also known as Generation Y, now accountfor 73% of all B2B purchasing decisions4. Growingup with the internet and mobile phones, they aredigitally native and more technology oriented thantheir predecessors. B2C customer experiencesin their personal lives heavily influence what theyexpect from B2B transactions. Think about whatfeatures you value when placing a B2C order – speed,convenience, flexible delivery options these arewhat your B2B customers are looking for whenconsidering doing business with you.B2B customers were asked:what is your top criterionwhen choosing a newsupplier?Not having to wait for a sales rep to getin contact: 52%Online order tracking: 39%The ability to place orders via an onlinesales portal: 38% Source: Sana4However, turning your B2Bwebsite into an Amazon-likeexperience to make purchasingsimpler is only half the story 4 - Sana, “How to Meet Buyers’ Demand for (Better) B2B E-Commerce,” February 2019, https://info.sana-commerce.com/int wp b2b-buying-process-2019-report.html

5The ultimate B2B e-commerce guideB2B CUSTOMER FEATURESNow you know that B2B customers aremigrating towards online channels to make theirpurchasing decisions, how can your businessmake an impact there?Much more than just another touchpoint, a wellimplemented e-commerce platform will open newopportunities and help your business reach and engagenew customers easily and effectively.The major features influencing the customer journeyon B2B e-commerce platforms can be grouped intofive categories, outlined below. To shed light on thesecategories, DHL’s research team conducted extensiveresearch, supported by primary, qualitative datagathered from in-depth interviews.Consider these five categories as your guide toimplementing a digital channel that will drive value foryour customers and increase your profitability throughhigher market share and operational efficiency.1. DIGITAL INFRASTRUCTUREYou can enhance the customer experienceacross your end-to-end businessprocesses by incorporating functionalityand technologies. Digitalization of yourfull product catalog, for example, and theinclusion of a simple-to-use and powerfulsearch engine to find those products arefundamental features. Additional featuressuch as mobile/tablet responsiveness, strongdata protection, secure online payments andchat functionality have also become standardexpectations for most users of e-commerceplatforms, whether B2C or B2B.

6The ultimate B2B e-commerce guide2. CUSTOMER EXPERIENCE2020 was the year customer experience surpassedprice as the key differentiator for B2B buyers.Now, 64% of buyers place more importance onexperience than price, whilst 86% of buyers arewilling to pay more for a better experience5.Whether it’s a complete digital transformationor just a refresh of your website, make thecustomer the center of your focus for 2021.Every new feature and every new projectshould start with the question, “how doesthis improve the customer experience?”3. PERSONALIZATION21st century customers are looking to source globally, so youre-commerce platform should be able to handle payment in any currency.Improve customer satisfaction by providing clarity around the associatedcosts for a cross-border transaction, such as duties and taxes.4. OMNI-CHANNELThe research found that integration wasmost successfully carried out through B2Bomni-channel commerce; a multi-channelsales approach combining traditionalonline, bricks and mortar stores, tablet and/or smartphone options. This seamlessintegration increases customer engagementand helps B2B companies to amplify theirbusiness goals and targets by reachingcustomers globally.5 - The XM Institute, “ROI of Customer Experience,” August 2018, omer-experience-2018/

7The ultimate B2B e-commerce guide5. LAST MILE OPTIMIZATIONThe customer experience is not over after a B2B buyer clicks the ‘BuyNow’ button. In many cases, this is where the real customer experiencestarts – with speed, reliability, traceability, convenience and an effectivereturns and exchange policy top priorities. Follow the example set bythe B2C sector and invest to ensure that your final touchpoint with thecustomer is a positive one.COVID-19: B2B’SBIG DISRUPTORIt’s not just millennials pushing B2B towards a digitalrevolution – the arrival of COVID-19 in early 2020 hadan unprecedented impact on the sector too.With the pandemic ravaging the globe, your business mayhave joined countless other manufacturers, distributorsand wholesalers which have relied on B2B e-commerceto keep operations going, and switched in-person salesmeetings to online channels like Skype6.If your business is now planning on keeping these newdigital methods long term, it’s not alone: only 20% of B2Bbuyers say they want traditional in-person sales to return,even in sectors where field-sales models have traditionallydominated, such as the pharma and medical sectors7.In addition, buyers are becoming more confident atmaking larger value purchases online: 70% of B2Bdecision makers say they are open to making fully selfserve or remote purchases in excess of US 50,000, whilst27% would spend more than US 500,0008 in a singleonline order.COMPANIES EXPECT THECHANGES TO STICK9Likelihood of sustaining new go-to-market for 12 months % of respondents89%Very likelyUp 11.25%since r 28, 2020Aug 11, 2020It is no longer a question of if you should move yourbusiness online but when and how fast. Many B2Bcompanies that do not yet have an e-commerce solutionare now starting the process of looking for solutionproviders. Are you?6 - Skype7, 8, 9 - McKinsey & Company, “These eight charts show how COVID-19 has changed B2B sales forever,” October 2020, how-covid-19-has-changed-b2b-sales-forever

8The ultimate B2B e-commerce guideSPINNING THE E-COMMERCEFLYWHEELThe Flywheel Effect isa concept which saysthat “good to great”transformations don’thappen instantly; instead,as with flywheels, theyrequire turn upon turn,building momentum until apoint of breakthrough andbeyond.To support you on yourjourney towards havingan optimal e-commercesales channel for yourB2B company, we haveanalyzed the four phaseswhich play a vital rolein getting your own“flywheel” spinning:1234Start to spin the flywheel by migrating your customersfrom offline to online channels. If your team isimplementing a new e-commerce channel, be sure tocommunicate early and often with your customers. Ensureyour online platform is user friendly with how-to guidesand FAQs. Think of the ease at which you can navigate B2Cwebsites - this the new baseline.Keep the flywheel spinning. Customer experience is nowkey – roll out programs that spur loyalty, higher ordervalues, and increased purchasing frequency. By allowingboth subscription-based and traditional one-off purchases,you can lock in buyers and yield higher customer lifetimevalues. This will also produce data which can help yoursales teams better understand your customers’ buyingbehavior. Integrate partner software like Rebilla10 to managesaved credit card information for individual customers, ortechnologies like PayWhirl11 for recurring billing.Make your e-commerce flywheel a vital part of yourbusiness model. Align business processes and teams toscale. Review your current organizational structure andre-align roles and resources, hiring from outside yourorganization if necessary. Once that structure is in place,have a charter over budgeting and management decisionsthat impact the digital team. A tool like BundleB2B12 canbetter mobilize your sales team to access buyer shoppinglists, add products to cart, and complete order placement.Have your e-commerce flywheel connect with others.Internal channel conflict is a common pain point forB2B organizations, so work to ensure your e-commerceplatform complements all your other sales channels. Yourdigital team, alongside sales leadership, should championthe benefits of technology-based customer self-serviceand how it can actually help sales members retire andexceed quotas. Only if and when a customer becomescomplex should an actual sales representative take overthe account; an approach that allows the team to focusmore on selling and less on order taking.10 - https://www.rebillia.com/ 11 - https://app.paywhirl.com/ 12 - https://www.bundleb2b.com/