Trends & Developments in B2B E-Commerce 2023

B2B e-commerce is experiencing growth and is developing just as rapidly as the online world as a whole. However, many B2B companies invest very little in expanding e-commerce and consequently fall behind current technological developments. Whether the rising requirements for a professional online business are missed due to a lack of budget or knowledge, awareness is increasing in the B2B industry as a whole that digital sales channels represent a significant opportunity that should be utilized.

The recent Corona years have sustainably changed the business world. Due to lockdowns and restrictions, field sales have largely shifted to digital channels, 

forcing sales teams to find digital and hybrid methods. This has notably impacted B2B companies. 

According to B2B Market Monitor 2022 by IFH Köln, 1.49 trillion was generated in B2B e-commerce revenue in Germany. Of this, almost 50% is attributable to manufacturers, over 30% to wholesalers. 

As far back as 2019, a survey indicated that over 50% of respondents from B2B companies purchased at least 75% online, with an upward trend. In the same survey, 55% agreed that by 2025, more than half of their corporate purchases would be made through webshops and online marketplaces.

These figures underscore the increasing importance of B2B e-commerce. As an online marketing agency, we have been following and supporting the developments of our B2B clients for years. In this article, we aim to share the key insights and new trends from the industry with you.

What does B2B e-commerce mean?

B2B e-commerce refers to the online sale of products or services to corporate customers, such as wholesalers, retailers, or other business clients. In contrast, B2C deals with sales to end consumers. 

There are also companies that sell to both end consumers and professional customers, such as a catering company that delivers food for birthdays as well as for corporate events and fairs. Or a company that sells building materials to both contractors and end consumers.

The sales process occurs through an online shop, an electronic procurement system (Electronic Data Interchange or EDI), or an online marketplace. To date, procurement systems are still responsible for a large part of B2B e-commerce revenue. According to a new study by ECC KÖLN, Adobe, Creditreform, and Intershop, marketplaces are gaining significance compared to online shops.

How do B2C and B2B e-commerce differ?

B2B e-commerce targets a professional audience. While B2C messages are often directed at an individual, decisions in the B2B realm are often made by multiple people. This means different needs for information, varied types of questions, and decision criteria must be considered in the sales process. Impulse purchases, which are significant in B2C, are rare in B2B, as decisions are seldom made by a single person; budgets need approval and expenditures need justification.

Another significant difference: In the B2B sector, order values are often higher than in the B2C segment. This can result in fewer orders needed to meet revenue goals, and the target audience is smaller.

• Further differences between B2C and B2B e-commerce at a glance:
  Customized solutions and pricing are common practices in B2B commerce.

• B2B acquisition is often more elaborate and consultancy-intensive.

• Thanks to high order volumes and sometimes relatively fewer customers, individual customers are more valuable, and customer retention is particularly important.

• Consequently: Excellent customer service is crucial, especially for technically complex products or services.

• New customer acquisition largely consists of building relationships and trust, which are prerequisites for a deal.

• Products are sometimes more complex and entail a higher information requirement.

• B2B e-commerce often involves larger order quantities compared to the B2C segment.

• Recurring orders are also more common and make satisfied existing customers especially valuable.

Further challenges in B2B e-commerce

From these differences arise specific challenges and tasks that B2B e-commerce faces.

Online distribution channels must, for example, provide different information for different stakeholders. Technical details, prices, efficiency, and additional information must be easy to find—an obstacle that not every shop system is equipped to handle.

Moreover, manufacturers discovering B2B online sales face competition from the distributors selling their products. On one hand, this might risk jeopardizing good relationships with distributors. On the other hand, distributors are often ahead of manufacturers in terms of technology and marketing—an advantage not easily caught up with.

B2B companies in Germany address rising demands in various ways, with not every company being active online or investing in the development of their online distribution. At the end of 2021, according to Statista, 28% of surveyed decision-makers and project leaders from B2B companies stated they would allocate 5% of total revenue to e-commerce. Only nine percent invested more than 60 percent.

B2B Online Sales and B2B Marketing Trends 2023

Sales channels and marketing are continuously evolving and have received a new impetus in B2B e-commerce since the pandemic began. From the many fascinating developments and topics we observe in the market, we have outlined nine important ones. General online marketing trends for 2023 can be found in this article.

1. High demands on B2B e-commerce solutions

The demands on B2B sellers are increasing; the online version of the print catalog is no longer contemporary. Previously, sellers provided their business customers a catalog as a PDF file or depicted in a rigid shop system; expectations have changed. Business customers also purchase products privately and expect the same buying experience in their corporate purchases. The requirements of B2B and B2C customers are converging more and more. Usability and performance are therefore also very important for B2B e-commerce.

A B2B online shop needs not only to be able to represent transactions but also complex sales processes up to customer care after the sale. This also means keeping an eye on market developments and new requirements. Following the B2B Market Monitor survey, 75% of respondents agreed that it is important to them for e-commerce solution providers to continuously develop their products and their features.

73% of those surveyed also find it important that additional solutions are offered alongside a pure commerce platform, such as integrated online marketing tools.

Examples of features of a good B2B e-commerce solution (depending on the industry):

• Individual prices and special conditions (visible only after login)

• Clearly visible availability

• Definite delivery times

• Easy options for recurring orders

• The ability to assign multiple roles with different rights per company

• The functionality to collaboratively fill a shopping cart

• Integration with existing systems

• Product configurator for individual solutions

• Uncomplicated contact with customer service

• Self-service (the ability to complete a purchase without customer service assistance), e.g., via a comprehensive information portal and digital contract management

• Simple request for service features like repairs

As B2C e-commerce advances, the requirements for B2B shops and marketplaces also grow. This technical challenge is one that various providers of major shop systems have now taken up with B2B-specific e-commerce solutions.

2. The significance of B2B (niche) marketplaces is rising

B2B marketplaces are an alternative or addition to B2B shop systems. According to the B2B Market Monitor 2022, last year, 27% of revenues were generated through B2B marketplaces, whereas in 2018 it was only 15%. As every industry carries its own individual requirements, the importance of specific marketplaces is rising.

Meanwhile, major players remain vital and are investing in their growth. An example of this is Amazon Business, which takes much work off B2B companies (for example, in billing) while still offering them many options in price and discount structuring as well as product promotion, plus detailed dashboards for assessments. LinkedIn is also currently working on a B2B marketplace solution.

3. Composable Commerce

The increasing demands represent a substantial chance for Composable Commerce. As an alternative to a single system, different software solutions are combined into an individually suitable application in this approach.

The more challenging it becomes to find an all-in-one application that covers all needs, the more attractive tailored solutions through Composable Commerce become. Companies are not reliant on a single platform but can remain agile, adjusting or replacing individual modules as needed. All channels can be leveraged to offer an optimal customer experience across all touchpoints.

The downside: The complexity of Composable Commerce solutions requires professional support for setup. All connections must function seamlessly, and often there are different contacts for various software solutions. Once the system is operational, however, it becomes a powerful B2B e-commerce and online marketing tool.

4. The Metaverse as a sales channel

The importance of the Metaverse is debated in expert circles: a private sector gimmick or a real opportunity for the B2B sector? It can be utilized as a virtual space for promoting and selling products.

Examples include:

• Virtual shops or showrooms with virtual staff

• Networking events

• Virtual trade shows

• Other virtual events like product presentations

Predictions foresee substantial growth for the Metaverse: Bloomberg, for example, projects a market volume of around $800 billion for the Metaverse economy by 2024. Companies that seize this opportunity early could have an advantage over competitors.

5. AI-supported personalization

A great B2B customer experience is essential in many industries by 2023 to successfully attract and retain customers. Artificial Intelligence (AI) is making its way into many sectors of the online world, not least Google has been harnessing AI for years.

In B2B e-commerce, AI can automatically enhance the customer experience by providing personalized prices, products, offers, or product recommendations. Individual user journeys can be created based on collected data such as location, order history, shopping carts, CRM data, and visitor behavior. Shop navigation, search, and product recommendations are guided by AI-supported systems. This development is one we see a lot of potential in and eagerly follow.

6. Customer engagement and retention through content

B2B customer engagement must not only consider different decision-makers but also vary in addressing different needs and levels, including personal and organizational levels. In B2B purchasing, primarily rational factors such as price and features count, but personal criteria also play a role. These include trust in the seller and the personal relationship. Supporting customer service, optimized content tailored to different users is thus a key success factor in the B2B segment.

B2B content marketing in e-commerce could mean:

• Detailed product descriptions with technical data sheets and 3D views

• Tutorials and how-to videos for product setup and usage

• 3D configurators for creating an individual, precise product

• Online showrooms and booths for demonstrations and further information

• Webinars

• White papers
  Market studies and surveys

• Case studies

• etc.

This also includes general virtual information offers relevant to companies in the industry, such as industry news or technical articles with new scientific findings, highlighting the company's expert status.

7. Security in digital identities

Online sales, especially with high order volume, require strong data security and a check of buyers' digital identities. The challenge is balancing secure identity verification procedures with the customer journey when onboarding is interrupted or delayed by time-intensive validation.

Buying on account is still a popular payment method in B2B e-commerce. To minimize risk for sellers, identity checks are necessary. Unlike B2C business, it's not just about the customer's personal identity, but also the company's identity: Does the person actually work at the company and is authorized to electronically complete the transaction? Marketplaces and B2B e-commerce solutions often already include identity verification through external partners. Innovations and simplified secure solutions for both sides are expected here.

8. Expansion towards B2C

B2B and B2C are not always sharply divided, and this development is intensifying. B2B companies expand their target audience by also selling to consumers. For example, by opening the online shop to private consumers.

Another development: Manufacturers, who have previously only sold their products via wholesalers or retailers, are entering into direct-to-consumer (D2C) business—targeting private or business clients. The advantage: consumers generally trust manufacturers.

Incidentally, there is a similar trend in reverse in the B2C sector: companies are expanding their consumer shops to include a section for business customers.

Parallel B2B and B2C shops and their specific requirements are among the current challenges for e-commerce solutions.

9. Measurable KPIs becoming even more important

The economic situation is tense, and many companies are cutting budgets. An important part of B2B marketing is nurturing new and existing customers and building a reputation as a brand. However, when sales stagnate or decline, it becomes vital to know: What revenue do individual channels and measures bring? What is the ROI? Precisely measurable activities are increasingly important in 2023.

At the same time, digital channels offer crucial opportunities to reach new target audiences in the B2B segment. Good communication with potential buyers is more crucial than ever as many companies compete for clients with sometimes reduced budgets. The key here is targeted targeting to spend the budget most effectively. The conversion after the click, in turn, depends on an optimal user experience within the shop system, as described above.

B2B e-commerce marketing with internetwarriors

Are you planning to establish or further develop your B2B online shop? Are you searching for a reliable partner with years of experience in B2B e-commerce and comprehensive knowledge of the specific challenges of B2B online marketing?

As a full-service agency, we have been supporting B2B companies of various sizes in implementing tailored online marketing strategies, even on an international level, for many years.

Contact us today for a non-binding offer! Together, we can develop a strategic solution that will lead your B2B business to success.