25% of the world’s population chose to buy online in 2020. The e-Commerce industry has grown 20% in the same year. In 2021, retail sales is expected to rise to 17.5% from 13.7% (in 2019). The exact data for 2020 is yet to come given the advent of Covid-19. Brands, manufacturers and distributors have traditionally been slow to adopt B2B e-Commerce, but this is quickly changing with Covid-19 epidemic. Let’s understand in detail how B2B e-Commerce will be doing in 2021, as per the available data of 2020 and past years.
We surveyed manufacturers and distributors around the world to gain a deeper understanding of how the industry is changing in the wake of new challenges, disruptive technologies, and shifting customer expectations. Survey respondents were asked about their operational challenges, sales and fulfillment processes, and technology investments, with a particular focus on the areas of B2B e-Commerce and mobile technology. 65% of the survey respondents said that their wholesale customers or retailers are asking for online ordering option from them.
On being asked why they are looking to implement B2B e-Commerce solution, 67% of the survey respondents said that they are looking for efficiency gains of the sales force and other manpower which are associated with the automation of the customer ordering process. The other reason they cited is to remain competitive in their industry with the help of technology.
Brands and manufacturers across industries are seeing measurable results after B2B e-Commerce investments. They are able to see improvements in frequent re-orders, up-sell, customer retention and reduction in customer acquisition cost with improved sales force efficiency. This kind of impact is growing over the years with better adoption.
73% of the survey respondents are saying that their wholesale customers are placing orders are higher frequency while 53% of the respondent says that they are able to activate dormant customers as well.
Manufacturers and distributors are struggling with the B2B buyer adoption, pointing to user experience gaps in ordering online. When we asked directly about the challenges, they are facing with their B2B e-Commerce solution, 45% says that not enough wholesale customers are placing orders online through their portal. It’s clear that these reported user experience issues directly fuel B2B buyer's ability and willingness to place orders online.
Survey results also shows that B2B e-Commerce offering that includes a mobile option can positively impact adoption rates, particularly when the offering includes a native mobile application.
For respondents who currently have a B2B e-Commerce solution that allows their buyers to place orders through a mobile web browser, 25% are seeing adoption rates of over 50%. 43% of respondents who offer a native mobile app as their mobile option are seeing more than half of their wholesale customers placing orders online.
B2B e-Commerce is estimated to grow approximately 2.5 times bigger than B2C. This means that a huge wave of opportunities is about to come and this will keep on going for a very long time. However, in order to stay ahead of the competition, companies must provide a good B2B e-Commerce platform with cutting edge technology for their retailers or wholesale customers. At Edistera, we have managed these expectations and are constantly working on being the best in the industry.
We have also written a blog which can help you find the best SaaS for your B2B e-Commerce requirements. Check it now: What to expect from SAAS Solution Provider
Before you think about choosing an existing B2C solution to fulfil your B2B ordering needs, you must read this: Why B2C e-commerce platform won't work for B2B
If you are still in doubt thinking why you should invest in a SaaS Solution for your business to business e-Commerce requirements, you must check this blog out to understand the revenue related benefits: Decoding the Business ROI and Impact
At this point, it should be clear that B2B e-Commerce is a must-have for modern manufacturers and distributors. If you haven’t yet implemented B2B e-Commerce at your manufacturing and distribution business or are looking to upgrade your current B2B e-Commerce solution for one that is up to 2021 standards, schedule a demo with us today.