New Tech Opportunities Led By Increase in B2B E-Commerce

Jul 10, 2019

Forrester Research reported in 2017 that B2B (business-to-business) e-commerce transactions will climb to $1.2 trillion by 2021.

Within the United States, this accounts for more than 13% of all B2B sales. That figure is up $889 billion in sales calculated at the end of 2018.

None of this is surprising considering more day-to-day decisions are left in the hands of millennials, the first generation to grow up with the internet. These digital natives have forced B2B businesses to follow the lead of business-to-consumer companies. Business-to-business companies need to think outside-the-box when it comes to workflow management and support for duties, such as sales forecasting and vendor selection.

However, many B2B organizations are working with decades-old workflow management tools that don’t provide the collaboration, communication, flexibility features they need. To best follow in the footsteps of B2C, new digital systems and tools need to be customized to meet the needs of B2B e-commerce facilitators.

What This Means for B2B E-Commerce Payments

This shift away from time-consuming processes, like mailing paper invoices and accepting checks for payments, is forcing B2B financing and credit to change. This has triggered a need for real-time payments and credits for B2B e-commerce operators.

The transformation will be best addressed through the implementation of a new automated system that more closely mirrors payment solutions instead of credit options. This type of workflow overhaul with personalized payment terms will result in faster turnaround times, reduced costs in doing businesses for manufacturers and distributors, and allow for bulk purchases.

The Way to Win

As new generations of buyers and sellers with unique purchasing behaviors entering the market, there is no choice but for B2B e-commerce operators to adapt to meet their needs. Some of the best moves will be from interacting with sales teams directly to automating some tasks. They also will need to take into their demands to purchase in stores, online, and with their mobile devices. Finally, B2B also needs to change its focus customer, and sales support will become automated or funneled through digital self-service channels.

The B2B companies that view digital e-commerce as a holistic system, not just a way to order products online, will succeed. In addition to embracing new technology and innovations, there needs to be an organizational shift. This won’t come easy because it requires support from leaders and complete adoption of new digital capabilities.
The groundwork is laid for progressive momentum with digital transformation when leadership support, employee engagement, and stealth knowledge of customers are integrated.

Also, any digital strategy cannot be hyper-focused on replacing sales teams and trimming down its pool of customer service representatives. They play critical roles in building quality customer experiences at B2B companies. The problem is much of their time is wasted on low-return activities, like taking orders and searching for inventory.

The best digital strategy will put sales and customer service reps in charge of higher value-added activities, like providing better customer experiences and offer valuable data to their customers.

In Conclusion

B2B businesses that will really thrive are those that focus less on getting people to buy whatever they are selling and start developing tactics that making doing business with them more straightforward. A holistic, fully-optimized e-commerce experience begins with a strategy that considers and implements all necessary strategies.

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B2B businesses that are in need of merchant account services or processing should contact eMerchantBroker.com. EMB offers all types of payment solutions. Apply online today.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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