This document discusses key aspects of business-to-business (B2B) e-commerce. It notes that B2B online revenue exceeds business-to-consumer revenue and is projected to reach $12 trillion by 2020. Unlike B2C, B2B purchasers prioritize efficiency and need robust product information over user experience features. Successful B2B e-commerce requires understanding customer workflows, integrating with business systems, and providing self-service options rather than relying on sales. While still early, B2B e-commerce presents major opportunities for companies that can address the distinct needs of business purchasers.

1. Field Notes From
Adventures In
B2B Ecommerce
Scott DeToffol
Director, eCommerce
Navitor, Inc.
Follow me on Twitter: @detoffol

2. Let’s Get This Out Of The Way
Show of hands:
1.E-commerce
2.Ecommerce
3.eCommerce
4.e commerce

3. Data Decides (Google Trends)

4. B2B > B2C
“B2B online revenue already dwarfs that of B2C”
"Business to business (B2B) online revenue is rapidly catching up business
to consumer (B2C) e-commerce revenue, with B2B expected to reach
$800 billion to $1 trillion in 2014"
https://www.internetretailer.com/commentary/2014/09/25/b2b-e-commerce-b2c-world

6. B2B Disruption In Good Company
“Research and advisory firm Frost & Sullivan projects
B2B e-commerce will hit $12 trillion worldwide by
2020 and says it was tops among up-­‐and-­‐coming
industries in innova2on and market a4rac2veness.”
1. B2B Online Retail, 10.55
2. Big Data Analytics, 10.05
3. Internet of Things 9.6
4. Cloud computing, 9.6
5. Urban Logistics, 9.3
6. Waste to Energy, 8.95
7. Mobile Robotics, 8.7
8. Cyber Security, 8.25
9. 3D Printing, 7.95
10. Alternative Energy, 7.75

7. Big Players
❖ Amazon Supply.
• Amazon job posting states "Our goal
is to supply everything needed to rebuild
civilization”
❖ Alibaba is expected to make a big play in the U.S. after largest
IPO in the history
❖ Many top 50 ecommerce companies have significant B2B
sales, some are strictly B2B: #3 Staples, #9 Office Depot, #11
CDW, #12 OfficeMax, #13 WW Grainger, #40 MSC
Industrial Supply
❖ Manufacturers are going direct using ecommerce

8. Distinction Without A Difference?
❖ “B2B needs to catch up to B2C”
• Amazon like features
‣ Wish List & Recommended Products
‣ Prime Shipping?
‣ One-click to buy?
‣ Product Reviews?
• Amazon like service
‣ 24x7 call centers?
‣ No question returns?
‣ Massive distribution?
“This whole ecommerce movement, which started
as a consumer movement, will be adopted by
businesses big time. The distinction between B2B
and B2C is going to die very soon,” IndiaMART
and InterMESH co-founder Brijesh Agrawal

9. Selling To Business Complexities
❖ Multiple users/roles per
account
❖ Tiered accounts
❖ Multi-site
❖ Tax exempt
❖ Shipping addresses
❖ Customized Products and
Orders
❖ Discounts, price tiers,
custom pricing
❖ Quoting
❖ Wholesale / Resell
❖ Arrival times/dates,
especially when products
are part of another solution
(just in time)
❖ Payment types, Purchase
Orders
❖ Credit on Account
❖ Punchouts
❖ Approval workflows

10. Don’t Settle For
Being ‘As Good As’ B2C

11. Why Ecommerce?
❖ Address markets that you can’t reach today with traditional
sales and service models.
• Too expensive to sell and service small customers?
• Geographical reach
❖ People are changing. They expect/prefer to gather
information, make decisions and place orders without
personal contact.
❖ Need to compete with new entrants who start with
integrated systems and ecommerce.
• Uber

12. B2B Is Naturally Multi-Channel
❖ Companies adding ecommerce already have offline sales and
customer service
❖ Omni-channel: combining ecommerce and phone/catalog/
direct sales & customer service is challenging
❖ The most important system might not be the front-end
ecommerce system.
http://blogs.informatica.com/perspectives/2013/10/15/relevance-commerce-
the-next-wave-replacing-omni-channel-commerce/

13. Purchasers Vs. Buyers
❖ B2B sites can cater to purchasers. Most ecommerce
platforms are setup for shoppers and buyers.
❖ Looking to be educated, not inspired.
❖ They know what they want. Purchasing is not a hobby like
buying.
❖ Make the experience efficient, get out of their way.
❖ Show everything needed for a complete solution.
❖ One session, less cross-device usage.
❖ Provide robust cart with complete options
❖ Price transparency: just the facts ma’am

14. Address Customer Workflows
❖ Find a place to innovate all along the supply chain
❖ Understand buyers unique requirements, limitations,
regulations, cycles, reorder timelines, resell opportunities, tax
implications, etc.
❖ B2B checkout needs can be very particular, depending on the
type of products, payment requirements, information gathered,
etc.
❖ Integrations to customer’s systems can be painful, but will
result in very sticky relationships
❖ Follow the money
❖ "What gets measured gets managed.”
Peter Drucker

15. B2B Ecommerce Technology
❖ In the next 18 months, 49% of B2B eCommerce pros will
change or upgrade their platform tech solution.
❖ They expect to spend almost 7% of online sales on
technology (licenses, fees, resources) in 2014.
❖ Decisions
• Re-platform, greenfield or integrate with existing systems?
• Adapt off-the-shelf to your business?
• On premise or SaaS?
• Use something that integrates with ERP
• Custom?
Forrester: Q4 2013 Global B2B eCommerce Online Survey

16. Marketplaces
❖ Amazon just launched services.amazon.com/selling-services
❖ Staples announced Staples Exchange last week: suppliers can
upload their products and receive orders through numerous
Staples sites
• 84% of their sales are from businesses. 77% sales from
repeat customers.
‣ Four51: connects suppliers and distributors to buyers
through private and public purchasing sites
‣ Challenges: how to get your product information ready

17. Important For B2C, Not As Much For B2B
❖ Guest checkout
❖ Related products
❖ Product reviews (company reviews may be more
appropriate)
❖ Clever copy (tech specs and deep information is important,
especially in sharable formats)
❖ Mobile / responsive
❖ “Modern” designs
❖ Promotions that incentivize quick sales

18. B2B Purchasers Have Different Criteria
❖ Not only WHAT they buy, but more importantly for
designers of ecommerce, HOW they buy
❖ Can I do my job easier on site A vs. site B?
❖ Buy with the head, less with their heart (than B2C)
❖ Design more about credibility and utility than beauty
❖ Multiple decision makers
❖ Desire to buy more from fewer vendors

19. Sales Process Has Changed
❖ Business buyers are engaging companies much later in the
sales process.
❖ 57% of B2B buying decisions are made before contacting
sales.
❖ Online sales lead response
times are crucial
❖ Once you convert, focus on retention because…
https://hb http://blog.hubspot.com/insiders/why-your-b2b-lead-response-time-is-killing-your-business r.org/2011/03/the-short-life-of-online-sales-leads/ar/1

20. TLV & AOV FTW
❖ Once their in the door, Average Order Value is much higher
than consumer products. They aren’t spending their own
money.
“The AOV was $491 for B2B respondents versus $147 for
consumer-oriented e-commerce executives; the average
conversion rate reported by the B2B survey respondents
was 10%, much higher than the 3% average reported by b2c
executives responding to the survey.”
http://www.internetretailer.com/2013/11/21/signs-point-b2b-e-commerce
❖ Fewer customers, but Total Lifetime Value is typically much
higher than consumer products. Allows for much higher
investment in funnel conversion tactics.

21. Self Service
❖ B2B POS = Point of Service
❖ “83% of respondents see a supplier’s web site as the most popular
channel for conducting research online, only 37% of procurement
managers and other procurement professionals … are satisfied with
the current level of information they find.”
❖ “Procurement managers also want the freedom of researching
purchases over the web at their discretion compared with a scheduled
live sales call or visit. ‘Only 12% of buyers want to meet in person
with a sales representa2ve,’ the report says. ‘Most respondents—71%
—prefer to conduct research and purchase on their own with access
to a sales representative via the phone or online chat when needed.’”
https://www.internetretailer.com/2014/12/01/b2b-e-commerce-execs-need-beef-content
❖ If you’re spending time and money on a “content marketing” that is
exclusive to blogs and social, and leaving your product info stale,
you’re missing the boat.

22. Take Aways
❖ B2B ecommerce is appreciably different
than B2C
❖ Big, BIG opportunity for companies
and professionals
❖ Still early days
❖ E-commerce is not cheap, requires investment in people,
platforms and process
❖ “Consumerization” of experience is important, but not to the
exclusion of critical B2B features and integrations