Trends & Developments in B2B E-Commerce 2023

B2B e-commerce is growing and evolving as rapidly as the online world as a whole. However, many B2B companies invest very little in expanding their e-commerce, thus lagging behind current technological developments. Regardless of whether the increasing demands for a professional online business are missed due to a lack of budget or knowledge, awareness is increasing in the B2B sector as a whole that digital sales channels represent a significant opportunity that should be utilized.

The past years in the pandemic have sustainably changed the business world. Due to lockdowns and restrictions, field sales have largely been shifted to digital channels, 

re-structuring sales to find digital and hybrid ways. This especially impacts B2B companies. 

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

As early as 2019, according to a survey, over 50% of respondents from B2B companies made at least 75% of their purchases online, with an upward trend. In the same survey, 55 percent agreed that by 2025 more than half of their company purchases would be made via webshops and online marketplaces.

These numbers illustrate 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. We want to share the most important insights from the industry and new trends with you in this article.

What does B2B e-commerce mean?

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

However, there are also companies that sell to both end consumers and professional customers, such as a catering business delivering food for both birthdays and corporate events and trade shows. Or a company selling building materials to both craftsmen and end consumers.

The sale occurs through an online shop, electronic procurement system (Electronic Data Interchange or EDI), or an online marketplace. 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 mainly addresses an individual, decisions in B2B often depend on multiple people. This means different needs for information, various types of questions, and decision criteria must be considered in the sales process. Impulse purchases, which play a significant role in B2C, are rare in B2B because decisions are often not made by a single person; budgets need approval and expenses must be justified.

Another significant difference: In the B2B sector, the order value is often higher than in the B2C segment. This can result in fewer orders being required to meet sales targets, and the target audience may be smaller.

• More differences between B2C and B2B e-commerce at a glance:
  Individual solutions and prices are common practice in B2B business.

• B2B acquisition is often more complex and consultation-intensive.

• Thanks to high order volumes and often comparatively fewer customers, individual customers are more valuable, and maintaining existing customer relationships is especially important.

• This also implies: Good customer service is crucial, particularly with technically complex products or services.

• Acquiring new customers involves building relationships and trust, which are prerequisites for closing a deal.

• The products are often more complex and require a higher level of information.

• There are often larger order quantities in B2B e-commerce compared to the B2C segment.

• Repeated orders are more common, making satisfied existing customers particularly valuable.

Further challenges in B2B e-commerce

The differences result in particular challenges and tasks that B2B e-commerce faces.

Online sales channels must, for example, provide different information for various stakeholders. Technical details, pricing, efficiency, and other information must be easily accessible - a challenge not every shop system can meet.

Manufacturers exploring B2B online sales find themselves in competition with the retailers selling their products. On one hand, this can mean risking good relationships with retailers. On the other, retailers often outpace manufacturers in technology and marketing. An advantage that can be challenging to overcome.

B2B companies in Germany meet the rising demands in various ways, not every business is active online or invests in developing its online sales. By the end of 2021, according to Statista, 28 percent of decision-makers and project managers from B2B companies stated that they would invest 5 percent of total revenue in 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 gained new momentum in B2B e-commerce since the pandemic began. From the many interesting developments and topics we observe in the market, we've highlighted nine important ones. General online marketing trends for 2023 can be found in this article.

1. High demands for B2B e-commerce solutions

Demands on B2B vendors are rising; the online version of a printed catalog is long outdated. Whereas vendors previously provided their business customers with catalogs as PDF downloads or through rigid shop systems, expectations have changed. Business customers also shop privately and expect the same buying experience in their business shopping. The demands of B2B and B2C customers are converging. Usability and performance are therefore very important for B2B e-commerce as well.

A B2B online shop must not only be capable of processing transactions but also complex sales processes, including after-sales support. This also means keeping an eye on market developments and new demands. Following the survey by the B2B Market Monitor, 75% of respondents agreed that it is important to them that providers of e-commerce solutions continuously develop their products and features.

Additionally, 73% of respondents consider it essential that, alongside a pure commerce platform, further solutions are offered, such as integrated online marketing tools.

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

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

• Clearly visible availability

• Clear delivery times

• Simple options for recurring orders

• The ability to assign multiple roles with varying rights within a company

• The functionality to jointly fill a shopping cart

• Integration with existing systems

• Product configurator for individual solutions

• Easy contact with customer service

• Self-service (the ability to complete a purchase without customer service assistance), as through an extensive information portal and digital contract management

• Simple requests for services such as repairs

As B2C e-commerce further develops, the demands on B2B shops and marketplaces increase. A technical challenge that various providers of major shop systems have already addressed, with B2B-specific e-commerce solutions.

2. The rising importance of B2B (niche) marketplaces

B2B marketplaces are an alternative or supplement to B2B shop systems. According to the 2022 B2B Market Monitor, 27% of sales were generated through B2B marketplaces last year, compared to only 15% in 2018. As each industry brings its own requirements, the importance of specific marketplaces will rise too.

Alongside this, major players remain important and are investing in their growth. One example: Amazon Business, which takes much of the workload off B2B companies (such as billing), still offers many options for customizing pricing and discounts, promoting products, and providing detailed dashboards for analysis. Also, LinkedIn is already working on a B2B marketplace solution.

3. Composable Commerce

The rising demands mean a great opportunity for Composable Commerce. Rather than relying on a single system, this approach connects different software solutions into a custom-fit application.

The harder it is to find an all-in-one application covering all needs, the more attractive custom solutions become through Composable Commerce. Companies aren’t dependent on a single platform but can remain agile, adapting or replacing modules as needed. All channels can be utilized, offering an optimal customer experience across all touchpoints.

The downside: The complexity of Composable Commerce solutions requires professional support during setup. All integrations must work seamlessly, and there are typically different contacts for various software solutions. However, once the system functions, it becomes a powerful B2B e-commerce and online marketing tool.

4. The Metaverse as a sales channel

In professional circles, the significance of the Metaverse is debated: Is it a gimmick for the private sector or a real opportunity for the B2B sector? It can be used as a virtual space for the promotion and sale of products.

Examples include:

• Virtual stores or showrooms with virtual staff

• Networking events

• Virtual trade shows

• Other virtual events such as product presentations

Predictions foresee significant growth for the Metaverse: Bloomberg expects the Metaverse economy to reach a market volume of 800 billion US dollars by 2024. Companies that seize this opportunity early can gain a competitive edge.

5. AI-driven personalization

A good B2B customer experience is essential in 2023 to successfully attract and retain customers in many industries. Artificial Intelligence (AI) is entering many areas of the online world, and Google has been using AI for several years.

In B2B e-commerce, AI can automatically improve the customer experience by providing custom prices and products, offers, or product recommendations. It can create individual user journeys based on data collected, such as location, order history, shopping carts, CRM data, and visitor behavior. Navigation through the store is conducted through AI-driven shop navigation, search, and product recommendations. A development in which we see significant potential and one we follow with interest.

6. Engaging and retaining customers through content

Reaching B2B customers involves considering different decision makers and addressing a range of needs and levels, including both personal and company dimensions. Rational factors such as price and features are crucial in B2B purchases, but personal factors also matter. These include trust in the seller and personal relationships. Content optimized for different users is therefore a key success factor, alongside customer service, even in the B2B sector.

B2B content marketing in e-commerce can mean:

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

• Tutorials and how-to videos for setting up and using products

• 3D configurators for creating a tailored, perfect-fit product

• Online showrooms and trade fair stands for demonstrations and additional information

• Webinars

• White papers
  Market studies and surveys

• Case studies

• etc.

This also includes general virtual information offerings important for companies in the industry, such as industry news or articles with new scientific insights that highlight the company's expert status.

7. Security of digital identities

Online sales, especially with high order volumes, demand a high level of data security and verification of buyers' digital identities. The challenge is balancing secure methods for identity verification with the customer journey, especially when onboarding is interrupted or delayed by a time-consuming validation process.

In B2B e-commerce, invoice payment remains a popular method. To minimize risks for the seller, identity must be verified. Unlike the B2C business, this involves checking not only the customer's personal identity but also the company's identity: Does the individual actually work at the company and is authorized to electronically finalize the contract? Marketplaces and B2B e-commerce solutions, through external partners, partly include an identity check. New developments and simplified secure solutions for both sides are expected in this area too.

8. Expanding towards B2C

B2B and B2C are not always distinctly separated, and this trend is amplifying. B2B enterprises are expanding their target group to include end customers, for instance, by opening their online shop to private consumers.

Another trend: Manufacturers that previously only sold through wholesalers or retailers are opening up to direct-to-consumer (D2C) businesses, be it to private or business customers. The advantage: Consumers generally have great trust in manufacturers.

In the B2C sector, a similar trend occurs in reverse: Companies are extending their consumer shops with a segment for business customers.

Parallel B2B and B2C shops and their unique demands are one of the current challenges for e-commerce solutions.

9. Measurable KPIs are becoming more crucial

The economic situation is strained, and many companies are cutting budgets. A vital part of B2B marketing includes maintaining relationships with new and existing customers and building a brand reputation. However, when revenues stagnate or decline, what becomes important is knowing: How much revenue do individual channels and activities generate? What's the ROI? Measures that can be tracked as precisely as possible are therefore even more significant in 2023.

Simultaneously, digital channels in the B2B segment provide important opportunities to reach new target groups. Good communication with potential buyers is now more crucial than ever, as many companies compete for customers with sometimes reduced budgets. The key lies in targeted marketing efforts to spend the budget as effectively as possible. Conversion after the click depends on an optimal user experience within the shop system, whose requirements we described above.

B2B E-commerce Marketing with the internetwarriors

Planning to build or develop your B2B online shop? Looking for a reliable partner with longstanding 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 different sizes in implementing customized online marketing strategies for many years, even at an international level.

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