We often hear that B2B companies should look to B2C for ecommerce innovation – but we disagree. As a B2B organization, your company has unique needs, requirements, and challenges that do not apply in the B2C world. While both B2B and B2C companies sell products online, that’s often where the similarities stop.
So, when it comes to your ecommerce operation, it’s important that the vendors and partners you choose cater tailor their services to B2B. At Xngage, we specialize in B2B, helping more than 70 manufacturers and distributors transform and accelerate their ecommerce operations. We’re sharing the key differences between B2B and B2C ecommerce.
The Buyer Journey
The first core difference between B2B and B2C ecommerce is the buyer journey itself.
Most B2C buyers are product focused and looking to satisfy a need or want. They will evaluate their options to find the best deal. These buyers may browse casually and make impulse purchases. Therefore, B2C ecommerce operations are tailored to encourage impulse spending and promoting sales and specials.
Meanwhile, B2B has an entirely different journey. First, it’s likely that you’ll have multiple buyers from one organization. Each will have a job to do, and each will be searching for a solution. They may have budgets and regulations to adhere to, or they may be required to buy exclusively from a certain brand or predetermined selection of products. Often, the focus in B2B is not on buying new products but replenishing the company’s current stock. These buyers are less focused on price than availability.
There are also much more complex processes on the B2B side of ecommerce. Buyers often require quotes and will negotiate on price. Any purchases may require final approval from the buyer’s organization. You may need to offer a variety of self-service features for these customers both before and after the purchase.
Because nearly every step of this buyer’s journey is different from B2C, you really need a B2B ecommerce operation that is tailored to this industry’s unique needs from user experience to data and analytics. You should be able to offer customer segmentation, showing specific products or brands based on each company’s purchase history or preferences.
Order Management
There are many core differences in the next step of the journey: order management.
In B2C, order fulfillment and delivery are pretty straightforward. While the items might originate from a few different warehouses or stores, they are almost always shipped to one location. Deliveries are optimized for cost. There may be some trial-and-error on the buyer’s side, with customers trying out items and returning or exchanging those that don’t work out.
In B2B, order management is much more complex. It’s not unusual for an order to be shipped from and to multiple locations, and different items may be delivered on specific timelines in order to accommodate a project’s phases. Sellers may help their customers manage their inventory, even placing orders on their behalf (vendor-managed inventory). Many B2B organizations will offer punchout solutions. Buyers often have auto-reordering in place.
B2B organizations must have processes and systems in place within their ecommerce operations that support these unique needs.
The Buyer-Seller Relationship
The final core difference between B2B and B2C ecommerce is the buyer-and-seller relationship.
In B2C, there may be some degree of brand loyalty, but there is almost never a one-on-one relationship and certainly not a personal one. Post-sale customer service is often limited to processing a return or exchange.
In contrast, B2B is all about the relationship. Customers depend on B2B sellers for their knowledge and expertise on products, solutions, and industry trends. B2B sellers often go above and beyond to provide excellent customer service. Sellers may help manage projects, offering services like planograms for large purchasing and job-specific credit terms. Sellers can even help procure non-stock items for their customers.
We believe that this area represents a huge opportunity for innovation in B2B. Whether it’s bringing your expertise online or offering unique features that make your customers' jobs easier, B2B organizations should look beyond the add-to-cart experience for opportunities for differentiation.
B2B Technology and Agency Partners
With these core differences in nearly every aspect of the ecommerce process, it’s easy to see why it’s important to select technology and agency partners who cater to the specific needs of B2B.
The technology you select will need to have the features and capabilities to support your needs.
Your agency partner’s role doesn’t stop once they implement the technology that hosts and manages your ecommerce operation. They should offer innovative solutions that help streamline your internal business processes – but they can’t do that if they don’t have a clear understanding of your unique challenges as a B2B company.
Get a Free Ecommerce Assessment from the B2B Experts
If your current ecommerce technology and partners are not specialized for the need and challenges of B2B, you’re likely not getting the most out of your ecommerce environment. Xngage offers a free, no-commitment ecommerce assessment to help identify roadblocks in your current ecommerce environment and processes. Our experts evaluate your goals, challenges, tech stack, analytics, and more to make customized recommendations for strategy, technology, and innovation.