B2B – eCommerce for Business
This is a type of eCommerce that works on a business-to-business basis. That is, when one company provides its services or goods to another company, and not to ordinary consumers.
A prime example is the collaboration between Sony Corp and Apple. Sony makes camera modules for the iPhone and iPad, selling them directly to Apple. In the same way, Intel previously supplied the Apple company with its proprietary processors, until it switched to its own – Apple M1.
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The e-commerce market is not just for B2C sales – the B2B eCommerce space is much larger than its B2C equivalent. According to the forecast of the consulting company Frost & Sullivan, by 2020 the size of the B2B eCommerce website development is double that of B2C: $6.7 trillion versus $3.2 trillion. In addition, 85% of the supplier-buyer relationship takes place without human intervention.
Back in 2016, 30% of B2Bs made at least half of their purchases online. 74% of wholesalers research products online, and 93% of them want to shop there. The internet and the digital era have completely changed the way we do business. Companies that are still not ready to sell online are not just at risk of losing customers – they are slowly dying out. B2B eCommerce is no longer an optional choice, it is now a necessity.
Let’s talk about how B2B companies are successfully developing the direction of B2B commerce, what it gives, and what prospects you are missing, ignoring this trend.
B2B Companies Reap the Benefits of eCommerce
Many B2B companies – staunch supporters of digitalization – have already switched to online and are successfully using the results of their work on the Internet. The largest American industrial distributor, Grainger, has completely switched to online, and irrevocably.
Since the launch of online channels, the company’s e-sales has increased as a percentage of total sales. In 2015, Grainger’s B2B eCommerce sales accounted for 41% of total sales. In 2016, this figure rose to 60%.
The CEO of the company, Donald McPherson, expects to increase the volume of electronic sales by up to 80% over the next 5 years. He views online sales as the main source of profit growth for the company and expects that with them, revenue will grow by 20% already this year, and profits will increase even more.
Why Choose Magento for B2B?
- Open source e-commerce platform Build your online store in minutes SEO and marketing tools Mobile Magento online store with a mobile friendly interface
- Scalable processing of multicurrency payments PayPal, Google Checkout, etc.
- Multicast delivery Manage your online store from anywhere
- No Bandwidth Limitations Free Support & Help Guides Massive Extensions & Plugins Available
- Magento Development Company provides quality, strategy and development for all of these components with good 24 x 7 support, ensuring that we are the ideal partner in your e-commerce solution as an offshore e-commerce solution provider.
SEE ALSO: How Does PayPal Work?
Magento for B2B has almost all of the mandatory features mentioned above, but unfortunately, there are user complaints about the complexity of the interface. People say Magento takes some time to set up before you can use the website requirements document.