Is anything in B2B not changing?
Jim Tompkins, CEO, Tompkins International recently blogged this interesting question, "Is there anything in B2B that is not changing?".
As his blog implies, the answer is very little or none because, as he puts it, "the B2B space is undergoing massive transformation as a result of major changes in customers, distributors, and technology. In fact, every aspect of B2B is changing and B2B players who are doing the same things today as they did 5 years ago will become obsolete." We added the bold emphasis but please read the article for the detail on how the entire B2B space is transforming, including customers, who increasingly shop on price and are demanding in terms of customer service, ease of use and product availability.
To Jim's points we can add some other supporting data:.
- Revenue - In total revenue terms B2B eCommerce is now more than double B2C eCommerce. A recent Forrester Research study shows that 89 percent of B2B providers said adding e-commerce to their business increased annual revenue by 55 percent.
- Average Order Value (AOV) - From the same study, 81 percent said selling online drove up their average order value by 31 percent.
- Buyers behavior - Acquity Group's 2013 State of B2B Procurement Study found 57 percent of business buyers had purchased goods for their companies online, with 37 percent expecting to spend more of their annual procurement budgets online in 2014.
The trend is well established, B2B businesses are adding eCommerce and those that have already added eCommerce are continuing to shift resources from other traditional sales channels into an e-commerce environment.
Have you established your B2B eCommerce strategy and execution plan yet? If not why not?
Please let us know your views..