Challenges Facing B2B Distribution Companies

E-commerce has become an inevitable trend that firms, even B2B organizations, must adapt to. B2B eCommerce will represent 17% of all B2B sales in India by 2023. Distributors must integrate B2B eCommerce, which is not an easy task.

Contrary to the B2C model, the B2B model involves several parties, from the C-suite to the procurement and finance departments, making the client purchasing process exceedingly complicated. Additionally, each order has a high value.

As a result, customers carefully analyze which is the best product before selecting the final source. Because of this, retailers need a comprehensive manual on how to do B2B eCommerce for distributors.

Common eCommerce issues facing B2B distribution businesses

1. Challenges in B2B commerce

Some B2B companies believe that because of the intricate nature of this model, eCommerce is not an option for them. Because it involves numerous stakeholders (C-suite managers, procurement teams, finance departments, etc.) and multiple stages, the decision-making process for purchases is complicated.

Additionally, customers prefer to avoid switching suppliers when they acquire a B2B product or service since doing so results in more prolonged procedures or higher prices. The following issues are often raised while developing a B2B eCommerce system for distributors:

• Pricing in agreements.

• Customer terms and agreements.

• Specialized goods.

• A variety of shipping and payment options.

These are intriguing topics to discuss with the provider of your eCommerce system, but they are not obstacles to your company's development. These challenges are readily surmounted if you choose the right eCommerce solution.

1. Technical expertise of the workforce

To implement eCommerce solutions, employers must be knowledgeable about technology and the workings of the eCommerce system, which sounds like a challenging endeavor. At first, your staff could find it difficult to manage the new eCommerce endeavor.

Additionally, workers must deal with the "resistance to change" issue. New buying technologies might make sales representatives feel threatened. The IT staff is worried that the new location would be dangerous and cause a process disruption.

1. It is important to create a strategy for training workers before you implement a new system. This strategy should take into account the time needed to put the plan into action. However, implementing a new system that is likely to fail is always risky.

2. Implementing a new system can be risky, but it's worth taking the risk if you hope to have it long-term. Training workers ahead of time will help minimize the chances of this happening.

1. B2B buying

B2B clients have more complicated purchasing procedures than B2C customers, particularly during the payment step. It is not as simple as connecting to a UPI account or entering payment card details.

Businesses need a secure means of money transmission that incorporates banks for high-value orders. B2B companies often utilize ACH payments in eCommerce. When utilizing an eCommerce system, businesses must manage other challenges besides money-related ones.

1. Integrating with customers' purchasing process, payment requests, delivery, and manager's approvals is a big goal for the company.

2. To achieve this goal, the company has to use different strategies and methods.

No eCommerce solution exists that can address these issues. It relies on the platform's integrations, features, and capabilities.

How to create a B2B eCommerce site for distributors

1. Specify the criteria for your project.

You will understand what your B2B eCommerce site requires after thoroughly analyzing the shop, the market, and your rivals. There are five things that merchants need to be aware of and explicitly identify.

• Principal goods

No one product has to be the focus. You can't put everything on the homepage of your website since visitors would get lost! List your bestsellers on the first page and describe them. Start with high-margin products to increase your chances of making more money.

• Navigation and the catalog

You must choose how you will arrange your items before uploading them. Customers may quickly browse and find products online. Merchants can sort the products by width, color, brand, shape, price, and other factors.

• Taxes

A sales tax strategy must be developed before an eCommerce site is launched. Taxes may be calculated in real-time at the point of sale by merchants using systems like TaxJar or Avalara.

• Fulfillment

If your eCommerce website and ERP system are integrated, it will be simpler to accelerate the fulfillment process and lower risks. Any meaningful partnership depends on it, and when appropriately incorporated, it may provide many financial and other advantages.

• Payment procedures

You don't want consumers to leave their shopping carts before checking out because there aren't enough payment alternatives, do you? Consequently, retailers should choose an eCommerce system that supports additional payment alternatives and permits the introduction of extras as required.

1. Think about your resource

If you don't want to deal with difficulties, consider your resources, including your finances, people resources, and technological capabilities. It costs a lot of money and effort to create an eCommerce website. The cost of hiring a development team to create a website for a business will be paid, and it will take time to train staff.

1. Choose a reliable platform.

You may quickly create a rough draft of your perfect eCommerce solution by combining what you have and need. Each platform has features based on its usability and degree of coding competence.

Naturally, the costs associated with each platform also differ in several ways. Establishing your company's skills and choosing the right platform is so crucial.

1. Employ a development crew

A reputable technology firm must have worked with various industries, including yours. It shows that they have the necessary expertise to develop your project safely.

1. Merchants could do their own research about a technical partner by looking at their portfolio and past projects.

2. Merchants could also assess a team's credentials by reading client evaluations and reviews of their past work.

Features that Distributors need from a B2B eCommerce site

1. Advanced search capabilities

A client's ability to search for a product is difficult by distributors' hundreds of goods with various SKUs. The user experience on your site will be improved, and your eCommerce strategy is probably effective if you have updated search capabilities.

1. Engaging customers with useful search tools will make them more interested in your products and, as a result, lead to more sales.

2. It is important to prioritize search functionality when deciding if a distributor eCommerce platform is necessary. This will help customers find what they are looking for quickly and easily.

1. Customization

Particular marketplaces only carry certain items. In certain circumstances, the product has various shipping costs and rules in several locations.

1. A distributor needs a digital commerce solution that can support their overall strategy. This solution should allow them to market products to specific customers or locations, as well as have different shipping options and prices in different regions.

2. A distributor needs a digital commerce solution that can help them with their overall digital strategy. This solution should allow them to manage their products, customers, and locations online.

1. Product suggestions

Product recommendations are a great way to simplify the purchasing process for clients while also improving the likelihood of cross-selling and upselling.

• When customers switch from shopping offline to shopping online, they are typically exposed to different products by the distributor.

• This is known as cross-promotion, a way for the distributor to help the customer switch to their product.

• Merchants may design a highly customized user experience when developing an eCommerce website. This happens when they focus on product pages, homepages, and shopping carts.

• Doing this allows merchants to create products specific to a region or demographics. This is done through the use of customer data.

1. User encounter

Customers give your website a few seconds of thought before deciding whether or not to visit again. Visitors will return to your website to explore your online shop and seek products if it is attractive and engaging. As a result, you may lower your store's bounce rate while raising the likelihood that a customer will make a purchase.

To enhance the B2B client experience, merchants must enhance their website user experience and user interface (UX/UI). Keep visitors on your website with a simple layout, easy navigation, and a user-friendly interface.

1. Merchants can improve the look of their websites by using attractive images and videos.

2. It is best for a website to use a platform that offers a lot of customization options, so that the website looks different for each person who visits it.

3. A platform with a lot of customization options is the best way to make sure that websites look different for each person who uses them.

1. Omni-channel

An integrated customer experience across all channels is provided by the multi-channel sales approach known as "omnichannel." In this approach, the company may ascertain the preferences and interests of the customers.

They might use this knowledge to better balance objectives and messaging across various media, improving the consumer experience. Omni-channel is fast turning into a need for successful internet businesses.

Conclusion

Distributors and wholesalers have exceptional potential to expand their businesses through many channels thanks to the B2B eCommerce market's unrelenting expansion.

Businesses can contact more consumers and raise the possibility that they will make a purchase. Including a B2B eCommerce solution in your business plan is essential if you want long-term success.

For over 26 years, Softworld (India) Pvt. Ltd.(SWIL) has been the leading solution provider in retail and distribution business. SWIL has specialized in healthcare & retail segments software solutions, asset tracking, and efficiently serving organiza