s direct selling a pillar of the B2B sector? Do customers expect consultant support? Does e-commerce implementation have to take forever? We debunk the biggest B2B sales myths!
How myths hinder the growth of B2B sales
Mythology is interesting and educational... Greek, Scandinavian, or Slavic, for example. The business mythology is better put aside.
All myths have a similar genesis – we once thought they were true. But over time, the current state of knowledge verifies many of them and replaces them with new standards. The problem starts when we do not update information often enough and remain in the world of business mythology. Then, many non-actual beliefs can hinder business development and stop us from progressing. And this is a very dangerous state, as vigilant competitors will leave us far behind. So let's take a look at 5 myths that are holding back B2B sales growth.
The 5 biggest myths of online B2B sales
1. The basis of B2B sales is direct relationship
Once upon a time in a faraway land without the internet, business salespeople had to travel in person to customers to present their offers. They rang doorbells, visit offices, and, with armfuls of paper catalogues, began the sales ritual. The method worked so well that for many years there was no need to change it, but all good things have an end. And from time to time, that end is also the beginning of something even better.
Many B2B companies continue to operate under the belief that direct sales is the best and most effective method of reaching customers. This myth is not entirely unfounded. For years e-commerce solutions were designed primarily for retailers, with the online shop being an add-on for the B2B sector as an online product catalogue. Fortunately, those days are behind us and today e-commerce not only actively supports business sales, but is one of its most important pillars.
Statistics about B2B sales
- In 2022, as many as 65% of B2B companies offered e-commerce solutions. This compares to 53% in 2021.
- Online sales account for 18% of the revenue of B2B companies. This is the same as that generated by direct sales. These two channels are the most profitable sources of profit in the B2B sector.
- 40% of Polish B2B companies offer online sales and 90% of the rest plan to implement e-commerce solutions in the near future.
- A quarter of B2B companies in Poland declare that more than 80% of their profits come from online sales.
2. Customers prefer to buy with the help of a sales representative
B2B companies' attachment to direct sales stems from the belief that this is what customers expect. According to conventional business etiquette, the client should be met by showing personal commitment, taking the time, and inviting them to a business dinner. It is true that relationships in business are important. We have written about building customer loyalty more than once. At the same time, the notion that a consultant's participation in every sales process is essential misses the point. According to McKinsey, as many as 85% of business customers prefer to place an order themselves, without the assistance of a consultant.
At the time of the pandemic, e-commerce was one of the fastest-growing industries. Online shops had to adapt to high customer demands by offering intuitive and automated shopping paths. The B2C sector made the most of this potential – modern e-commerce patforms make it possible to make a purchase in minutes thanks to automation, autocomplete, and clear navigation. The B2B sector, on the other hand, has approached these changes somewhat hesitantly, trying to maintain the current model for as long as possible.
Once learned, however, it is difficult to go back, and customers who have experienced the convenience of online shopping have begun to seek the same experience in business-to-business sales. Today, B2B retailers face the challenge of meeting the exorbitant expectations of their customers, and the notion that direct sales can successfully replace e-commerce is a damaging myth. According to a report by Wunderman Thompson, as many as 90% of online business customers say that if a company's online shop does not meet their expectations, they will look for better solutions from a competitor. Functional, convenient e-commerce is a prerequisite for customer satisfaction in the B2B sector today.
3. Implementing a B2B e-commerce platform must be long and expensive
Many B2B companies opt out of an ecommerce platform, fearing the high cost and time-consuming implementation. Does launching online sales always have to be long and expensive? Not necessarily. Of course, when it comes to implementation price, the sky is the limit and multi-million dollar investments in digital solutions are not uncommon, but this is not the only way to start your e-commerce adventure.
A good direction for companies that want to quickly launch online sales and not spend an astronomical amount of money on it is a solution based on ready-made templates. In this model, the platform is not designed from scratch, but the base template is customised to suit the requirements of the specific business. The e-commerce agency can tailor the shop to the company's branding, upload product offers and customer databases, integrate it with a PIM or ERP tool, support selected languages and currencies, enable stock management, and much more. Online shops built on ready-made templates are functional and for many companies – completely sufficient for effective online sales. An example of such a solution is B2B Box, built on the Magento engine and enabling sales to be launched in just 3 months.
4. E-commerce does not allow the price list personalisation
The B2B sector is characterised by a smaller number of customers, but much more advanced personalisation than the B2C sector. The personalised approach to the customer usually manifests itself in the form of direct sales. The sales representative presents an offer tailored to each individual company based on its business profile, demand, relationship with the shop, and order volume. Many B2B companies resist introducing online sales because this level of personalisation seems impossible for them with e-commerce. However, this is another myth about business-to-business sales.
Modern technology makes it possible to create personalised offers and price lists not only for particular segments but also for each customer individually! With e-commerce, the retailer is able to manage the prices, products, and recommendations displayed to each registered user of its shop. Intelligent price management is one of the most important needs for B2B companies, so such functionality is a priority for implementation agencies and e-commerce solution developers. An example of a company that has implemented advanced personalisation of its offer and price list is Orno, a manufacturer of electronic equipment in the home improvement and home automation sectors. We presented the Orno’s success story in this case sudy.
5. B2B sales are too complicated for e-commerce
The purchasing path in the business sector is much more complex than in the retail sector. Advanced product information including technical specifications, multiple people involved in the ordering process on the customer side, individual offers and price lists, support for several languages and currencies, integration with external inventory management tools, availability, and supply-dependent production. B2B sellers have specific needs and many feel that an e-commerce platform simply cannot cope with the challenges posed by the business sector.
There is a reason for this approach – online sales have been profiled for B2C companies for years, and many solutions cannot be adapted to the B2B sector, but have to be designed with the characteristics of the industry in mind from the outset. The lack of interest in e-commerce on the part of business-to-business retailers has not encouraged suppliers to invest in such solutions. In turn, the lack of suitable solutions discouraged sellers from embarking on the adventure of e-commerce. The industry fell into a vicious circle. Fortunately, today, the lack of e-commerce solutions for B2B can be put between myths.
Agencies and e-commerce platforms, seeing the potential for growth and the needs of the business sector, have greatly expanded the range of B2B services over the past few years and today sellers can benefit from the legacy of modern technologies and functionalities designed specifically for them, including:
- Custom roles and permissions for customers and vendors.
- Advanced product information management.
- Setting individual price lists for each customer.
- Support for overseas markets.
- Handling orders below stock levels.
- Dynamic distribution and production management.
The digital industry is finally able to meet the expectations of its customers, and the convenience and effects of online sales mean that more and more entrepreneurs are incorporating online channels into their business models.
There is a grain of truth in every myth
Many myths have grown around business sales, which hold back the growth and optimisation of a company. However, these myths have their background. For years, the e-commerce industry was unprepared to cater to the B2B sector, and direct selling was an established (and functional) customer relationship model. The evolution of online sales has taught everyone a lesson and exposed the potential of online business sales. Today, retailers can use modern technology to:
- Simplify the purchase path.
- Improve the user experience.
- Expand the customer base.
- Manage team time more effectively.
- Automate processes.
- Optimise budgets.
- Analyse sales data.
Changing beliefs and building business awareness is a task for suppliers and vendors alike. Fortunately, and this is borne out by a growing number of studies and reports, the market is ready for change, and the pace of change is spurring it on.
