B2B ecommerce. Distributor Guide
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1 2016 B2B ecommerce Distributor Guide
2 2 Not sure what the hype surroundingb2becommerce is about? Find out why it is importantforyourbusinessin this guide! This guide will illustrate 1) the key problem that distributors face without an integrated ecommerce solution, 2) how the problem can be addressed, and 3) what industry trends in B2B ecommerce are taking place.
3 3 Welcome to NebuCore s 2017 B2B ecommerce Guide CONTENTS 01 INTRODUCTION 02 INDUSTRY TRENDS NebuCore,Inc 03 WHOLESALE GROWING PAINS NebuCoreisacloud-basedERPSaaScompanyspecializinginproduct-basedB2B/B2CeCommercebusinesssolutions.Itsmissionistobecometheindustry standardforsemi-sophisticatedbusinessoperations by filling the increasing need for a more specialized ERPsolutionamongstsmallandgrowingbusinesses THE SOLUTION REFERENCES
4 4 INTRODUCTION What is B2B ecommerce? B2B ecommerce, also known as business-to-business electronic commerce, is the selling of products or services between businesses through online sales portals (i.e. websites). RisingCustomerDemandfor B2B ecommerce While B2C businesses were the first to adapt to consumer demand for lighting-fast fulfillment via online channels and smart devices, the demand is swiftly moving up the supply chain. According to an Accenture study, 66% of B2B suppliers list customer expectations as the driving force behind their technological investments.¹ This phenomenon is a result of millennials taking over the job market for retiring baby boomers. Millennials are accustomed to self-service tools for instant access to a company s product information and the ability to purchase from their smart phones. HowdoDistributorsHandle New Growing Pains? These days, B2B businesses are learning what is critical to the success of their business - a content-rich and mobile-responsive ecommerce website that is fullyintegrated with their business operations. This way, B2B businesses can better manage customer groups shipping and payment preferences as well as the specific pricing and product lines they have access to, amongst a plethora of other benefits. Wholesalers and manufacturers who grasp this trend early on are reaping the benefits of directly selling to consumers via ecommerce channels.
5 5 60% OFB2BSELLERS 83% OFB2BSELLERS reported that buyers spendmorewhenthey interact with multiple channels are taking their sales andoperationsonline to increase customer engagement Current Status Quo in an On-Demand Economy An excellent customer experience for the modern customer can best be met by an omnichannel sales approach, which aims to provide customers with a seamless shopping experience across multiple points of contact, whether it is in-person, in-store, via , phone, or ecommerce on the laptop, mobile, or tablet. While in-person sales strategy has traditionally been most popular amongst manufacturers and distributors, the opportunities in B2B ecommerce have shifted the industries to adopt an omnichannel sales strategy. In an omnichannel world, busy customers are able INDUSTRYTRENDS Historical Context of ERP Traditionally, B2B businesses have heavily invested in standalone on-premise ERP (Enterprise Resource Planning) systems that created a barriers for entry when they wanted to take their business operations online. These traditional homegrown systems often B2B ecommerce Market Size T RAPID MARKET GROWTH Over the next five years, the B2B ecommerce market will be double the size of its B2Ccounterpart,worth $6.7 trillion by had to deal with complicated infrastructure models and siloed technology systems when managing their entire business enterprise. Additionally, synchronizing 01 backend information with what customers are presented with in the frontend can be overwhelmingly costly without seamless integration and customization.² Luckily, with the onset of new technologies, companies are able to overcome these barriers to entry. The trick is to choose the right platform that can handle complexities specific to a business as they scale, all the while delivering excellent customer experiences # of buyers whomake most of their B2B purchases online 30% 60% 04 BUYERS ARE GOING ONLINE The number of buyers who makethemajorityoftheirb2b purchases online is expected to double within the next three years from 30% to 60% comparable to their B2C counterparts So what exactly does an excellent customer experience for the modern customer entail?
6 6 to easily look up a company s ecommerce website, find all the information they need to make the right purchase, call a sales representative on the phone (only if they have time to), and purchase items on their smartphones two days later.³ Omnichannel selling came about in response to an on-demand economy, with the new generation of millennials accustomed to instant access to information and instant gratification. B2C consumer expectations for easy online-ordering and fast shipping are becoming the standard for B2B customer expectations. As a result, many companies are gravitating toward cloud-based integrated solutions to increase efficiency in their business operations and open up new online sales channels.⁴ This shift in consumer behavior and subsequent sales approach is bringing about an increase in revenue and customer loyalty as well as a A Forrester Research B2B ecommerce Survey Forrester Research conducted a study that surveyed 352 midmarket B2B ecommerce decision-makers. The study found that: With B2B buyers moving toward online channels, B2B sellers are increasingly improving their customer s purchase experience by focusing on building a user-friendly ecommerce service. Amongst the study participants, the average online B2B sales growth is at 26%. Moreover, B2B sellers that have opted for an integrated ecommerce solution have cited improvements in acquiring new customers and nurturing customer relationships. 62% of midmarket B2B sellers that plan on engaging in ecommerce purchase intend to adopt an integrated solution, and only 36% are likely to select a standalone ecommerce system. This is because integrated solutions are easier to maintain, streamline operations, and scale with a business.
7 7 80% OF B2B BUYERS reported that they would buy again from an omnichannel supplier WHOLESALE GROWING PAINS Distributors Face Diverse Downstream Customer Requirements It is no surprise that these days, customers want fast shipping, free shipping, and readily available products. A study conducted by Accenture found that a number of wholesalers are leveraging their fulfillment speed to give them acompetitiveedge,suchasshippingoutproductstocustomers within 24 hours of receiving an order (Accenture 9). Customers expect to be able to purchase products online, instore,inperson,viaphoneor .perhapstheywanttohandle shippingthemselves,orperhapsthey dlikeadistributortoship itthroughups,usps,fedex,orafreightcompany.thecustomer expects their order to arrive in two days, but a distributor is still configuring pricing, all the while waiting to hear back from a shippingcompanytheyhaveneverworkedwith!thisscenariois all too familiar. How does a distributor be omnipresent, and be everywhereandeverythingtheircustomerneedsthemtobe? Customers expect to be abletopurchaseparoducts online, in-store, in person, via phone or .
8 8 THE SOLUTION Distributors Need Omnipresence through Centralization The answer is simple. Modern distributors need to be able to easily access updated information to answer customer demands on the go. According to Forrester Research, Every day that B2B companies fail to offer a compelling B2B ecommerce experience, they fall further and further behind more advanced competitors. Every day that B2B companies fail to offer a compelling B2B ecommerce experience, they fall further and further behind more advanced competitors. A cloud-based Enterprise Resource Planning (ERP) suite with a built-in integrated ecommerce solution can help a distributor deliver a consistent customer experience through any commerce channel also known as an omnichannel process. A sophisticated business operation software achieves this by centralizing a distributor s supply chain, CRM, sales channels, inventory, ecommerce website..etc. A distributor can enjoy having all their business operation data synced and backed up across the board. Not only can they utilize cloud mobility to access data on computers, tablets, smartphones, and other smart devices, but also gain a single view of their business operations at one stop. Ultimately, as a Forrester Study supports, a unified ecommerce solution that is integrated with a business s core business operations bring in higher sales and satisfaction metrics compared to best-of-breed ecommerce users. When a customer calls, a distributor can be ready to place a perfect order provide competitively priced quotes, free and fast shipping, accurate order records, damage-free and readily available product supply, and an easy return process. Does this all seem too idealistic? Let s see what wholesale distributors say about this. In a study conducted by IDG Research Services, distributors who invested in technology saw a great improvement in their key business challenges. In particular, 100% of distributors saw an improvement by collecting business insights to drive decision-making, 90% of distributors saw an improvement by leveraging customer relationship management (CRM) to manage new sales opportunities, and 89% of distributors saw an improvement by using mobile technology to make sales and customer service more efficient (IDG Research Services). Evidently, it is critical to the success of a wholesale distributor to connect with customers in a modern and agile way. Centralizing business operations on the cloud with an integrated ecommerce platform is the only way to keep up with fierce competition and not be left behind.
9 9 Benefits of an Integrated ecommerce Solution According to IBM s 2015 Study, the benefits of utilizing an ecommerce solution fully-integrated with a cloud-based ERP suite include : Automationofcustomerserviceandaccount management Ability to launch digital product promotions and brand campaigns Better understanding of customers by gatheringvaluablecustomerinsightsthrough web and business analytics Advanced product searches for greater customer convenience Greater efficiency across sales channels allows sales representatives to focus on new customer acquisition Ability to go paperless in operations and replace large outdated print catalogs
10 10 REFERENCES ¹BuildingTheB2BOmni-ChannelCommercePlatformofTheFuture, Forrester,2014. < insight-building-b2b-omni-channel-commerce-platform-future.aspx> ²Martin,Kerry,andTimToews. B2BCommerceEffectiveness:5KeyComponentsofSuccessfulB2BCommerce. FitForCommerce. IBM, July Web. 23 Dec < ³Handshake.N.p.,n.d.Web.23Dec < ⁴ Tomorrow s Midmarket B2B Ecommerce Will Take Place In The Cloud. Forrester Research. Netsuite, June Web. 23 Dec < ⁵ Closing the Gap: Digital Leadership in B2B ecommerce. B2B Online. Oracle, n.d. Web. 23 Dec < wbresearch.com/closing-the-gap-digital-leadership-in-b2b-ecommerce-ml>. ⁶US B2B ecommerce to Reach $1.1 Trillion by 2020, Forrester, < b2b_ecommerce_to_reach_11_trillion_by_2020?> ⁷ Future of B2B Online Retailing, Frost and Sullivan, < MA4E > ⁸Ibid. ⁹Building The B2B Omni-Channel Commerce Platform of The Future, Forrester, < insight-building-b2b-omni-channel-commerce-platform-future.aspx> ¹⁰Ibid. ¹¹OnlineandMobileareTransformingB2BCommerce, Forrester,2013. < ¹² Tomorrow smidmarketb2becommercewilltakeplaceinthecloud. ForresterResearch.Netsuite,June2016.Web.23 Dec < ¹³Martin,Kerry,andTimToews. B2BCommerceEffectiveness:5KeyComponentsofSuccessfulB2BCommerce. FitForCommerce. IBM, July Web. 23 Dec < ¹⁴ The SMB Business Environment. BurCom Consulting. IDG Research Services, Oct Web. 23 Dec <
11 11
12 2017 B2B ecommerce Distributor Guide NebuCoreisacloud-basedbusinessoperationsoftwarecompany specializinginwholesaledistributorb2b/b2cecommercebusiness solutions.itsmissionistobecometheindustrystandardamongst small and growing businesses. NebuCoreoffersanall-in-oneERPsuitewithabuiltin ecommerce website. Looking to get started? Contact us today! ( University Ave # San Diego 92103
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