In recent years, the world of commerce has seen a significant shift towards digitisation, with businesses of all sizes moving online to better serve their customers. But while the focus has largely been on direct-to-consumer (DTC) transactions, the business-to-business (B2B) sector has also been quietly undergoing a transformation of its own, writes Shaun Broughton, Managing Director, APAC at Shopify.

Countries in conflict, soaring inflation, and the cost of living crisis are starting to bite. The reality is market conditions have become harder and, as a result, commerce has become more competitive and complex.

Traditionally, commerce was just about the transaction between a brand and a buyer. Now, the relationship between brands and buyers is more than just the transaction — it’s about connection, experience and personalisation.

Below, I’ll explore how B2B commerce is embarking on a global upgrade, and what this means for businesses and consumers alike.

The rise of B2B eCommerce

According to a report by Grand View Research, the global B2B eCommerce market is predicted to grow by another 20 per cent by 2030. This growth can be attributed to several factors, including the increasing adoption of cloud computing, the rise of mobile devices and the growing demand for digital marketplaces.

B2B eCommerce is not a new concept, but it has traditionally been seen as a secondary channel for businesses to sell their products. However, as more and more B2B buyers shift towards digital channels, companies are investing in sophisticated eCommerce platforms that can handle complex transactions, personalised pricing, and customised product catalogues.

Benefits of B2B ecommerce

The advantages of B2B ecommerce are manifold. One of the most significant advantages is the ability to reach new customers through digital marketplaces, which allow businesses to access markets and customers beyond their traditional boundaries. This is particularly beneficial for small and medium-sized enterprises (SMEs) that may not have the resources to expand their physical presence.

Another key benefit of eCommerce is the potential to reduce costs associated with order processing, inventory management, and distribution. By automating these processes, businesses can streamline their operations and increase efficiency, leading to significant cost savings.

Moreover, digital platforms enable businesses to offer personalised pricing, customised product catalogues, and 24/7 customer support, enhancing the overall customer experience and building brand loyalty. This level of personalisation can lead to improved customer satisfaction and retention rates.

Lastly, eCommerce platforms generate vast amounts of data, which businesses can use to analyse customer behaviour, improve marketing strategies, and identify new business opportunities. By analysing this data, companies can gain valuable insights into customer needs and preferences, helping them tailor their products and services accordingly.

‘DTC-ifying’ B2B ecommerce

In recent years, there has been a trend of B2B companies trying to create experiences for their customers that are more similar to those offered by DTC companies. The concept involves merging modern online shopping with traditional B2B purchasing methods. This can be achieved by offering personalised options, better discounts or faster shipping. The goal is to understand business buyers’ needs and provide them with suitable solutions.

DTC experiences are gradually creeping more and more into the B2B sphere, and personalisation is key to creating an online buying experience that makes your customers feel special.

Brands like Australian swimwear label, Kulani Kinis have been quick to adopt this trend. Looking to grow their wholesale business, Kulani Kinins added Shopify’s B2B feature to its existing Shopify Plus store to create highly personalised user experiences for its B2B customers. As a result, the company saw a 300 per cent increase in online B2B transaction revenue – up 60 per cent year-on-year – and tripled the size of its B2B customer base.

“Thanks to features such as native B2B companies profiles, we can set up a new retailer in the wholesale website to make the user experience highly personalised to that customer,” says Alex Babick, Managing Director and Co-Founder at Kulani Kinis. “We’ve been able to create a user-friendly space for smaller retailers around the world to select and buy our products to sell.”

While personalisation is not a new concept in retail, this demonstrates the importance of creating DTC-like customer experiences for traditional B2B buyers. In fact, Accenture data suggests 50 per cent of B2B buyers identify customer personalisation as a key component when searching online for suppliers, which increases consumers’ spending by at least 48 per cent.

The key for B2B businesses is ensuring they’re constantly adapting to meet customers where they are, with the right information delivered in a personalised way.

Addressing common B2B hurdles

One of the primary difficulties faced by eCommerce brands is the integration of their DTC and B2B businesses, as they normally run on separate platforms. And studies show that 90 per cent of B2B buyers want DTC-style experiences from the suppliers they buy from, yet more than half are frustrated when brands fall short on these expectations.

Integration not only streamlines operations but also provides a seamless shopping experience for customers across all channels. Additionally, it offers flexible integrations, open APIs, and automated order processing to increase efficiency and reduce time spent managing multiple platforms. This is particularly beneficial for brands struggling with manual and disjointed sales processes.

Business customers are crying out for the same personalised, seamless shopping experiences they have when making personal purchases. Flexible platform solutions that deliver a DTC experience now makes it easier than ever before for eCommerce brands to reach new customers and grow their business.

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