The global B2B e-commerce market is valued at US$20.4 trillion; 5 times more than the B2C market.
Growth of B2B e-commerce
In 2023, B2B e-commerce experienced remarkable growth in different regions: In the United States, growth reached an impressive 17%. For Latin America, growth was even more significant, reaching 22.7%. This growth is expected to continue to rise. Globally, B2B e-commerce is projected to grow by 19%, and in the case of Latin America, growth is expected to be 20.6%, consolidating the region as an important driver of growth in this sector.
The main drivers of this growth are the accelerated adoption of digital technologies, the need for companies to optimize operational work and costs, pursuing efficiency and omnichannelity. The latter point is leveraged by two very relevant premises: 7 out of 10 B2B buyers consider that buying online is more convenient and prefer to do so when they are ready to buy. In 2024, B2B e-commerce buyers will use between 3 and 10 digital channels to research purchases of goods and services and buy online from sellers. (SOURCE: DIGITAL COMMERCE 360)
B2B Buyer: Evolution
The current B2B buyer is initially a B2C buyer, so he wants the same personal shopping experience, now in his work.
According to Digital Commerce 360, it is estimated that 70% of buyers in the B2B sphere will be millennials. This phenomenon reflects a significant shift in the business purchasing landscape, where a younger generation is playing a predominant role in purchasing decisions. This data highlights the importance of understanding and adapting to the preferences and behaviors of this generation in order to succeed in the B2B market.
- Preference for efficiency and automation: Millennial B2B buyers show a clear preference for efficiency and automation. They use digital tools and platforms to streamline the product and service acquisition process, seeking to optimize their operations and save time and resources.
- Need for personalization and adaptation: They also value suppliers that can personalize their offerings to suit their specific needs and custom requirements. The ability to personalize and adapt has become essential to capture and retain the attention of these demanding buyers.
- Use of specialized platforms and tools: Millennial B2B buyers leverage specialized platforms and tools, such as CRM and e-procurement, which help companies manage supplier relationships, track orders, and control costs efficiently. These digital tools facilitate purchase management and contribute to the optimization of business processes.
What are the challenges?
We can identify 5 important challenges when deciding to implement B2B e-commerce.
1. Multi-channelality
According to McKinsey, there is a new general rule within customer service channels called the 3/3 rule. It explains that B2B customers want to be served through 3 channels and have the option to choose which one to use: 1/3 in-person sales, 1/3 remote sales (where the counterpart is also a person) and 1/3 digital self-service.
According to the same study, 35% of B2B buyers rated e-commerce as the most effective sales channel, followed by in-person sales (26%), videoconferencing (12%), email (10%) and phone (8%).
2. The Role of the B2B Salesperson
Another challenge is understanding the new role and profile that the B2B salesperson takes on in a company that implements B2B e-commerce. By having a complementary solution for sales, the salesperson takes on a role of “business developer” rather than an “order taker”. They must also train and support their customers in the correct use of e-commerce tools.
Having these tools will allow the salesperson to have more time and information to identify customers who need more frequent or specialized visits, depending on purchase volumes and the season of the year.
3. Artificial Intelligence
Artificial intelligence is another element that has a lot to offer. While AI requires large volumes of high-quality data to train effective models, data can often be incomplete, inaccurate, or out of date. The challenge lies in integrating existing systems, which can often be complex. But making these integrations will allow us to automate product recommendations, personalize marketing campaigns, predict customer behavior based on historical data and current interactions, adjust content, offers and recommendations in real time, among many others.
4. Technological and Customer Experience Challenges
There are also technological and customer experience challenges. Here we can identify “7 moments of truth”:
- Clear price information.
- Accurate and real-time inventory availability.
- Match information on the site with the negotiated price.
- Content tailored to buying stages.
- Ease of creating an order.
- Repeat order and re-quote.
- Convert a quote into orders.
5. B2B Marketing Challenges
Finally, there are the marketing challenges. The challenge of B2B marketing is to put the customer at the center of the strategy. This means getting to know them in depth to personalize their experience. In this area, the challenge lies in collecting and normalizing the large amount of information generated, and then analyzing it to gain a deep understanding of the customer and their needs, which can then be used to impact them at the right moments with the right action, addressing their specific needs.
