Digital transformation and eCommerce development are taking over the B2B industry at a rapid pace and are bridging the gap between the marketplaces. Prior to COVID-19, 2020 was already expected to be the great year in B2B sales by the dollar value, operating at twice the size of the B2C market at USD 6.7 Trillion. As per Forrester, U.S. B2B eCommerce transactions are anticipated to reach USD 1.8 Trillion by 2023.
Why are things changing so rapidly? What are the steps to be taken to ensure that your business isn’t left out? And many such questions might be hovering in your mind. Let’s answer them in the upcoming paragraphs.
A big portion of the overall macroeconomic force is the changing demographics of B2B buyers. The B2B landscape is experiencing a paradigm shift as Millennials take hold of most buying responsibilities in B2B and distribution to B2C firms. You must know that millennials are the largest generation in the workforce. Millennials will account for 75% of the workforce worldwide by 2025. Today’s generation is of technologically dependent, digitally connected, and software-savvy workers.
So, what does this mean for B2B companies? Well, today, more than 46% of all B2B purchases are made by millennials. This is so because this customer group is inclined towards the ease and convenience of digital buying experiences. For millennials, these two factors are more important that impact their buying choice. According to statistics, 69% of millennials say that the ease of doing business is why they go for the companies they work with. To retain more customers, it is important to look after your online portal or buying experience.
How Amazon’s marketplace is affecting B2B business?
During COVID-19, the crisis has boosted eCommerce, and online sales (up 25% industry-wide since March), Amazon’s dominant market share has only grown. So how Amazon’s push into the B2B eCommerce market can hurt your business?
As the market has expanded, customers will start shopping on the Amazon Marketplace for things like materials, parts, and even industrial chemicals without worrying about brand loyalty. Customers will see your products along with your competition, where the only comparable attributes are quantity and price. Ignorant about your product knowledge and differentiation, you be will be losing a large number of sales to competitors.
For better understanding, let take the example of Honeywell. Honeywell established the Honeywell Marketplace for aerospace parts companies. No doubt, it is an industry dominated by brand loyalty and trust; hence it is almost impossible for you to get buyers to see your products if you aren’t on Honeywell’s trusted marketplace. This trend became a boon for Honeywell. They took advantage as the industry leader and even increased their revenue. However, it may hurt smaller distributors competing for sales with every one of their competitors on the marketplace.
Continue reading the blog. Click on the link https://www.panaceatek.com/top-5-ecommerce-trends-to-stay-competitive-in-the-shifting-b2b-landscape/