Two prominent studies on the future of business-to-business (B2B) e-commerce published between Q1-24 of 2024 suggest that market conditions are deteriorating.
In February, Forrester Consulting's 2024 State of B2B E-Commerce Report found that a majority of respondents (65%) view B2B e-commerce as broken. Zovu, an AI-powered product discovery platform, commissioned the research.
Forrester researchers interviewed 413 board-level and above decision makers at U.S. and European companies with at least $200 million in e-commerce revenue.
According to respondents, most are unable to handle product complexity, collect customer data, or scale effectively.
- 96% of respondents reported that these limitations prevent them from making their entire product portfolio available online.
- 83% encounter problems with data that is incomplete, inconsistent, inaccurate, unstructured, or outdated.
Similar findings on the bleak state of B2B e-commerce come from the Sana Commerce 2024 B2B Buyer Report released in March, which revealed that B2B web stores are driving buyers away.
According to this study, 74% of B2B buyers believe they would change suppliers if another B2B web store offered a better experience. A survey of 1,000 She B2B buyers found that 68% are deterred from making She B2B purchases online due to order errors.
“Over the past two years, B2B suppliers have prioritized expanding capacity to meet increasing order volumes. However, the emphasis on speed and capacity poses additional challenges and risks for suppliers. ” said Sebastian Verhaar, CEO of Sana Commerce. “Buyers are now demanding specific criteria such as real-time pricing, inventory levels, and product information to consistently adopt B2B webstores as an integral part of their business.”
A clear recognition of broken B2B systems
The most striking statistic is that 65% of B2B leaders believe e-commerce is broken in their organization, Zoovu CMO Ken Yanhs admits, and this staggering data point is He pointed out that this means there is a whole billion-dollar sales channel. Companies don't get it yet, but opportunities exist for those that get it right.
This report explains why e-commerce is so disruptive for B2B companies. He believes this is because many organizations have not yet transformed their sales models to work both online and offline.
“Many organizations have tried to introduce B2C-style e-commerce, but it hasn't worked because of the way B2B business has operated for decades,” Yanhs told E-Commerce Times. “At the heart of this transformation is how dependent it is on product data, and this report explores in great detail just how much pain B2B companies are feeling with their product data. It is being done.”
Changing that bleak picture, he suggested, requires a complete shift in B2B leadership thinking. Digital transformation doesn't just mean new technology. Rather, it's about embracing new ways of thinking, achieved through new systems and solutions. Vision comes first, technology comes second.
“For B2B companies, their vision needs to be centered around three things: improving the customer experience, empowering their sales teams, and investing in clean, centralized, and rich product data that can be used for product discovery.” he said.
B2B buyer dissatisfaction
The Sana report conducted by Sapio Research found that the error rate in B2B online orders is alarmingly high. It also noted high levels of dissatisfaction among B2B buyers with inaccurate and impersonal user experiences on B2B web stores.
Researchers say the growing dissatisfaction lies in the fact that B2B e-commerce is barely functioning. The results showed that B2B buyers prefer to order online through a supplier's website, and 79% prefer to place repeat orders online.
For 58% of B2B buyers, e-commerce is now the norm for complex and high-value orders. But the ordering system is failing them.
“What is surprising is that 42% of buyers still choose to place complex and high-value orders offline,” Verhaar told E-Commerce Times. “Knowing that ordering online is generally preferred, we can infer that this preference is due to a combination of factors.”
He said many B2B webstores are not yet sophisticated enough to handle complexity, and buyers can't buy with confidence because they don't have all the information they need to complete an order.
The problem doesn't end there
Additionally, online sales still require human interaction, according to a Forrester report. B2B e-commerce platforms are losing money because they are unable to handle product complexity, collect customer data, and scale effectively.
Forrester's research also found that true customer engagement remains elusive. For some buyers, fully online sales remain out of reach.
B2B sellers face a significant threat of too many buyers having a bad experience with a B2B web store, and buyers are willing to jump on it. This issue is especially salient for U.S. buyers.
Zuvoo's Yanhs realized that the solution goes back to product data. To truly engage with customers, salespeople need to know everything about the products they sell, ask the right questions to understand the customer's needs, and use that information to match the right product to the customer. there is.
“Replicating that experience online is especially difficult for B2B companies because the product catalog is vast and those products need to be put together in a very specific and precise way,” he explained.
This will put an end to short-term and inappropriate solutions. It will also be the beginning of a true revolution in how B2B companies sell and customers buy, he predicted.
Few alternatives Combined B2B e-commerce
If business buyers want to use a web store, they must rely on telephone, fax, email, or in-person contact. None of these options are very efficient for either side of the transaction.
“If you're looking to avoid Web Stores, we encourage you to ask why. In most cases, the answers will boil down to concerns about overly complex setups and low adoption rates. ” suggested Verhaar of Sana Commerce.
He added that it's important to find an e-commerce provider that can truly support your most important use cases and buyers' specific needs. The right provider will ensure smooth onboarding and technology stack integration. The company's Web Store His software increases transparency and removes barriers to ordering.
Verhaar said the root of poor performance and buyer dissatisfaction in B2B web stores is an inability to handle complexity. Most web store solutions are not specifically designed for B2B.
For example, most products lack product-market fit and lack critical features needed for B2B detail. He added that the early days of digital transformation are behind us, meaning B2B buyers are no longer willing to accept minimally viable web stores.
Fixing what’s broken in B2B e-commerce
Data from Sana reports helps B2B sellers retain more customers by providing personalized details to B2B buyers and improving accuracy and transparency in pricing, delivery schedules, and product status. This suggests that it can drive greater revenue growth.
Customer relationships are built or lost depending on the performance of your B2B web store. If a B2B buyer has a bad experience with an online purchase, it's likely to affect their overall relationship with the seller, Sana points out.
Webstores must adapt or risk being pounced on by buyers. Ordering from a B2B online store shouldn't feel like crap. When B2B customers lack accurate and reliable information about pricing, inventory, and delivery dates, they may lose trust in your seller and take their business elsewhere.
The key difference between B2B and B2C e-commerce is the complexity inherent in business-to-business sales. The last mile of bringing the complex process online is also the most difficult Verhaar observed.
“To truly solve this, you need to seriously evaluate your web store solution. Does it provide true transparency to buyers? Can it handle the complex orders that buyers demand? If not, we recommend finding a technology solution that meets your needs as soon as possible,” he recommended.
According to Verhaar, the bottom line is very simple. Placing a Band-Aid on your current solution will only cost you more money to fix later. On the other hand, the buyer may already be out.
AI may provide viable solutions
According to Verhaar, this report is a strong reminder that merchants must stay ahead of the curve while meeting customer needs. Once the mainstream of your customer base adopts the technology, you need to be ready. If you delay, you face business risks. B2B commerce is now digital-first.
He believes artificial intelligence is one of the only viable catch-up options. AI is a powerful enabler for B2B e-commerce as it enables a B2B seller and her B2B buyers to complete tasks faster.
“AI-generated product descriptions, translations, and image creation reduce the complexity of webshop management. Therefore, some of the hurdles to fully adopting e-commerce for B2B sales may be due to sellers being able to can be overcome by recognizing the benefits of,” he explained.
B2B buyers can expect a more customized online experience as a direct result of AI analyzing web store data and customizing it based on user preferences and behaviors.
Yanhs agrees that the report confirms that B2B leaders understand the potential of AI. According to the survey, 79% of B2B executives believe AI-powered product discovery will improve the customer experience, 74% expect it to reduce costs, and 71% believe it will increase revenue. I am.
