Module 1

B2B - The opportunity

1.2 Orientation

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1.3 Objectives

VIDEO SCRIPT:
Welcome to this course, in this first module we’ll be exploring just what B2B e-commerce is and what it can do
for your business.
Let’s start with the term “B2B e-commerce” just what does it mean? B2B is short for “business to business” so
it means one business selling to another business (rather than a consumer).
e-commerce is when the order is placed on a website rather than via the phone, email, or in person.
Thus, B2B e-commerce is when a business is selling to another business via a website.
It’s the fastest growing type of e-commerce, Forrester estimates that B2B e-commerce will top $1.1T and
account for 12.1% of all B2B sales by 2020.
In fact 46% of manufacturers predict e-commerce will be their primary sales channel by 2020. So there’s
plenty of opportunity.
Many wholesalers and manufacturers are adding a B2B e-commerce sales channel to their business because
of this opportunity, and this opportunity is being driven by the customers.
Now that us humans are used to the ease and efficiency of buying for ourselves online, we want to have the
same experience when we’re buying at work for work.
30% of B2B buyers (your customers) make half or more of their purchases online today, and 74% research
half or more of their purchases online.
If it’s a channel your customers want to buy via why wouldn’t you sell to them that way?
As well as making your customers happy, it can also reduce the time your team spends dealing with
customers and orders so you can redeploy them to finding new customers.
In fact in 2014 Forrester surveyed 100 US firms that had implemented B2B e-commerce over the previous 7
years and found that 31% of the revenue those firms had got via e-commerce was new business.
B2B e-commerce is increasingly a sales channel your customers expect, and it also provides an opportunity
to find new customers.
By the end of this module you will:
 Understand what is meant by B2B e-commerce
 Be able to evaluate if it is an opportunity for your business
 Understand how ready your business is to embark on the B2B e-commerce journey

1.4 What is the B2B E-commerce Opportunity?

What is the B2B e-commerce opportunity?

1.5 Answer the question

Video script: A business is said to be engaged in B2B e-commerce when it sells products or services to other
businesses using an online system to take orders from its customers.
It can involve all types of products, from beads to jewellery makers, to pipes, complicated industrial
machinery and even entire factories.
In terms of services, meanwhile, B2B e-commerce can involve activities such as e-mail marketing, software
programming, graphic design, and administrative assistance.
There are a number of online systems that a company can use to manage its B2B e-commerce transactions.
These can range from a purpose-built website or phone app, to pre-existing virtual marketplaces, such as
Amazon, eBay or Alibaba. Essentially, there are as many ways to create and launch a successful B2B e-
commerce channel as there are types of B2B companies.
To be successful in B2B e-commerce, you will need to identify the right solution for your business. What’s
certain though, is that whether you will be selling on your own website, via a virtual marketplace, in your own
country, overseas, to existing customers, or in a new market, becoming engaged in B2B e-commerce can
represent a very exciting opportunity for your business.

What does B2B e-commerce mean for you and your business?

B2B e-commerce is when a business sells products or services to other businesses using an online system.
Think of how you currently sell to your business customers and how that customer would respond to
engaging online with you. Also, what new markets could open up if you begin to sell online.

1.6 Why do B2B Businesses decide to sell online?

B2B businesses start selling via e-commerce in order to either maintain market share, or to grow.
Starting to sell via e-commerce has an impact on every area of the business, and there is a lot of preparation
work to do - so there has to be a really good reason to put in all that hard work.
Those doing it to maintain market share are driven by fear of their competition, the competitors are already
selling online so you have to play catch up OR they are losing customers to online marketplaces.
Far more businesses are doing it as a way to grow their business. They see B2B e-commerce as a way to
increase sales by opening their business up to new customers and new markets.
Creating a B2B e-commerce channel enables new customers to discover the business, thoroughly research
them and their products online, and quickly place their first order.
A B2B e-commerce channel often provides an opportunity to sell to markets that were previously too difficult
or expensive to reach. That could be customers who order less in your existing geographic market, or
customers overseas.
B2B e-commerce can also create growth in sales to the existing customer base because they can now order
when and how they choose. Which also frees up the customer services and sales teams to better look after
the existing customers. Happy customers spend more.
There is a huge opportunity to make your business more efficient, and increase sales that will overall have a
great impact on growth and profitability. As well as set you up well for the future.

1.7 Why do customers increasingly want to buy online from B2B businesses?

The big change that makes opening a B2B e-commerce channel hugely attractive is the increasing numbers
of B2B Customers who want to order online, instead of picking up the phone, or filling in an order form.
This shift shows no sign of slowing down.
B2B customers are increasingly used to the easy process of e-commerce in their personal life, and they want
to have such an easy purchase route when they’re at work too.
e-commerce also gives them the opportunity to self-serve 24/7 - no more trying to remember to get that order
placed before the office shuts at 5pm. With e-commerce the customer can place the orders when it suits them.
Customers also increasingly want to research new products, services and suppliers, when suits them (not just
when the trade shows are on, or when they can have a meeting). The e-commerce channel enables them to
get immediate access to your product range, pricing, and other important information.
Many B2B customers are now making an online ordering portal (a B2B e-commerce website) part of their
supplier requirements, so if they can’t order from you online you won’t get the contract.
As the millennial generation takes over the workplace this change to customer requirements is accelerating.
If your customers want to be ordering online and you’re not providing a B2B e-commerce option for them,
then it’s a serious risk to customer retention and the future of your business.
1.8 B2B e-commerce is not one-size-fits-all

There are many different ways to sell to your customers online, here are some of the options.
If you want to sell direct to your customers via your own website there are several different site types you can
adopt:

Completely open

All pricing and information on display to anyone who finds the site.
Great for giving customers and potential customers all the information they need, and making it really easy for
them to buy.
Not so good if you need different prices for different customers, or don’t want to let your competitors have
access to all that information.
Examples:
walcothouse.com - Curtain Pole suppliers to the interior designer market
beadsdirect.co.uk - Europe’s number 1 bead and jewellery making supplier

Completely closed

No pricing or information available unless you have a login

Great if you want to control who can buy from you, and who has access to your data.
Not so good if customers forget their logins, or if prospective customers want to research you.

Homespare.com - where they actively direct people to the retail site if they want to get the products
Booker.co.uk - UK Cash and carry business

A shop window with Trade Accounts login

Everyone can see all your products, but there is no ability to checkout unless you have an account.
Sometimes RRP is displayed, sometimes no prices are displayed.
Great for allowing researchers access, and controlling who can buy.
Not so good if customers just want to quickly order.

indanc.com - selling pipes and valves

australisdistribution.com - selling a range of beauty products it’s really important to work out which option will
give you and your customers what you need.

1.9 B2B e-commerce is not one-size-fits-all, continued

Of course you can start selling via B2B e-commerce without having your own website.
Your business can also sell via other people’s websites - we call them ‘marketplaces’.
Different marketplaces are popular in different countries, and for different types of goods.
Amazon and Alibaba are two of the most popular for selling B2B but in the countries your business wants to
sell to there may be better ones to use.
The type of products your business sells can also influence which the right marketplace is to sell on.
You will need to identify whether selling via a marketplace or your own site, or both is best for your business,
and find the best way to implement. (We’ll be covering this in Module 2)

1.10 Answer the question

(Multiple Response, 10 points, 1 attempt permitted)

1.11 Answer the question
1.12 Answer the question
1.13 Is B2B E-commerce an Opportunity for your Business?

Is B2B e-commerce an opportunity for your business?

1.14 Answer the question

Video script: B2B e-commerce is currently an exciting way to grow a B2B business. The customers want to
order and research online, and the technology to do it is readily accessible.

Before jumping straight in it’s important to check if it is a good opportunity for your business.

Things to consider encompass the markets in which your business operates, what is happening inside your
business, AND the markets you could start to operate in if you launched a B2B e-commerce channel.

Is the market your business currently operates in one where the customers are ready to buy online? Is the
online infrastructure in place so your customers can access your website and buy from it? Are your products
the type of products your customers want to buy online?

Are your existing systems and data ready to integrate with a B2B e-commerce system? Are your team open to
going e-commerce? And if not, can you persuade them to?

Finally, is there an opportunity to use B2B e-commerce to sell your products in other markets? In your home
country or abroad?

It’s a lot to take into account before making the decision to launch B2B e-commerce. But important to do so,
as making the wrong decision could be catastrophic for your business.

QUESTION

What other factors should you consider before deciding to launch B2B e-commerce for your business?

FREE TEXT ANSWER

FEEDBACK

There are three areas to consider, each with their own factors. To assess the B2B e-commerce opportunity for
your business in your existing markets the key factors include the technology infrastructure of the country,
and the needs of the customers. To assess the opportunity within your own business the key factors are your
team, your existing systems, and your data. Finally, you should also assess whether or not B2B e-commerce
would give you the ability to sell into a new market - either at home or overseas.
1.15 Factors outside your business to consider

However attractive the B2B e-commerce opportunity looks for your business, there are other factors to
consider to understand if it is currently possible for you.

The factors outside your business are ones over which you have little or no control.

How ready for e-commerce are the customers in the country you are targeting?

Are they used to buying online? Do they have access to the right hardware at work to buy online? Do they
want to buy your products online?

How easy is it to facilitate e-commerce in your country?

Are internet connections sufficiently reliable, fast, and secure? Is there a postal or delivery system that can
easily get the product to the customer? Are the laws and regulations in place to make it possible?

What options do you have to sell to your customers?

Are there marketplaces operating in your country, or is your only option to sell via your own website?

These are the most important questions to consider when trying to work out how ready your existing market is
for a B2B e-commerce channel.

It is not a definitive list though, so if whilst considering these you identify another factor that you believe
highlights another risk or opportunity please do still consider it.
1.16 Factors inside your business

The next thing to consider is if your business is ready to add a B2B e-commerce sales channel.

Adding a B2B e-commerce channel is a huge change for your business - it’s going to affect every department
and everything you do.

Are your team in favour of the change?

Not only do you need your team bought in to the idea because they’ll be the ones making it a reality, they are
also the ones who are going to make it a success at launch and beyond.

Usually a key part of launching a B2B e-commerce channel is to get your team convinced the move into B2B
e-commerce is going to be good for everyone.

Sales teams often feel it will be a threat to their commissions - so you have to sell the idea to them.

There may also be training and systems improvements you need to make to help your team be ready.
Do your marketing team have the skills to manage digital marketing?
Customers will be able to place orders 24/7 how will your warehouse and customer service team handle that?

Do you have the data in place to make the website or marketplace listings work?

Take a look at a product on any e-commerce website, there’s a lot information there. Once your business is
selling online you will need all this information for every product you sell.
That includes information that sits behind the scenes such as stock information, prices, and customer account
information.

If things aren’t ready now that doesn’t mean you can’t launch a B2B e-commerce channel, it means you have
some work to do to get things ready before you launch.

1.17 Are there other markets you should consider?

If you’ve found that your business is ready for B2B e-commerce, but your existing markets aren’t then it is
time to look for new markets where you can take advantage of your business being ready to go into B2B e-
commerce.
These markets could be other customer groups within your existing country, or the biggest opportunity might
be to start selling overseas.
To assess these opportunities start by identifying markets where B2B Customers are ready to buy your
products online.
Then consider how easy it is going to be to put your products in front of them (don’t forget to consider the
marketplaces rather than own website route here), and then get the orders to them when they buy.
Working through this you may find multiple countries that offer a fantastic B2B e-commerce opportunity for
your business.
1.18 Summary

REASONS TO ADD B2B E-COMMERCE

Increase the satisfaction of existing customers
Acquire new customers
Better use of resources (your team)
Open new markets which don't currently buy your products

REASONS TO NOT ADD B2B e-commerce

If it’s not done right it can be a very costly endeavour
Building and launching a B2B e-commerce channel is a complex and time-consuming project
Your team is not yet ready
Your systems aren’t yet ready
Your existing markets & customers are not ready for B2B e-commerce
1.19 Answer the question

Feedback:

No.

Even if your existing market and customers aren’t ready for B2B e-commerce, there are probably other
markets in your country, or in other countries who are ready to buy your products online.

Feedback
1.20 Answer the question
1.21 How Ready is Your Business to Sell Online?

How ready is your business to sell online?

1.22 Answer the question

Video script: It is pretty much always possible to find a market where you could successfully sell your
products via B2B e-commerce. So if the market your business currently sells in isn’t ready, you can find
another market that is.

But if your business isn’t ready you can’t just pick another business to launch B2B e-commerce with, you
have to do it with the business you already have.

How ready your business is doesn’t affect whether or not you can ever sell online, it affects how much work
you need to do before you launch to get your business ready.
Every area of your business should be evaluated to see if it’s ready to make the shift, but there are 3 factors
that you should investigate very thoroughly.

Your team. They hold the key to the success of any B2B e-commerce project. Not only will they be working on
it, they’ll also be the ones responsible for launching it. You need them to love the idea, and be completely
behind it.

Your product data. If the information the customer needs to decide whether or not to buy isn’t on the website
they won’t buy.

Your systems, including logistics. If your systems aren’t ready to receive and order from a website or
marketplace, process it, and get it to the right customer at the right time then your B2B e-commerce channel
won’t be a success.

QUESTION
What are the 3 most important factors to evaluate whilst working out if your business is ready for B2B e-
commerce? And why?

FEEDBACK

Your team are an important factor because they will be doing the work on the project, and be responsible for
launching it.
If your product data doesn’t exist in a format that can be added to the website, then the customers won’t have
the information they need to make a buying decision.
If the systems aren’t able to handle online orders from the markets you want to launch into then you’re not
going to be able to deliver the right product to the right customer, quickly.
1.23 Getting your team ready…

There are 3 areas you have to get right for a successful B2B e-commerce launch project:
1.Get your team on board
2.Build the B2B e-commerce channel that best serves your target market
3.Execute the marketing to launch the channel

The first of these is the most important - if the team aren’t on board you won’t achieve the other 2 areas.

Unfortunately it’s also the easiest to ignore, as people assume everyone will just get on-board. Don’t make
that mistake.

From the very start involve your team - tell them what is being planned, ask them for their input, explain why
you’re taking this step and the benefits it will create for the business.

Meet with them individually and listen to their concerns - sales teams and customer service staff are often
worried a successful e-commerce channel may lead to them losing their job or earning less.

Very, very few businesses cut their headcount as a result of adding e-commerce, because the time saved on
admin is redeployed onto higher value tasks that mean the business does better, and therefore everyone
does better.

As the project progresses keep them updated and ask their opinion on how it can be improved and how best
to launch.

Keeping them involved, and addressing their concerns will make a huge impact on the potential success of
your project.
Once it’s live your team will be really important in getting the customers to use the new e-commerce channel -
so you may want to offer incentives for getting customers to place orders online.

RESOURCES
Gloveman VIP Case Study from “B2B e-commerce MasterPlan”.
The Ramp Tshirts podcast re: most customers still want a human contact…
https://e-commercemasterplan.com/ramp-tshirts-neil-cocker

1.24 Getting your product content ready….

The most time consuming part of launching an e-commerce channel in a B2B e-commerce business is
usually getting the product information together to populate the website.

That’s because for many manufacturers and wholesalers they haven’t needed this content in the past,
certainly not organised in this way.

To populate an e-commerce site you need the following for each product:
 Product name - the name of the product, often including pack size
 Descriptive copy - explaining what it is
 Unique product reference code - usually know as a SKU or EAN. This is really important to help customers
find the products they want quickly ,and to enable your systems to talk to each other
 Picture - sometimes more than one is beneficial
 Technical specifications - if customers need to know dimensions, pack sizes, integration requirements in
order to make sure they’re buying the right product, it needs to be ready to put on to the website.
If you think you have this information ready, then do check it because websites require a level of accuracy
and completeness that B2B businesses have often been able to avoid in the past.

Tidying the information and getting it ready for the website is a long and time-consuming processes usually
consisting of:
 Add all product information to a master spreadsheet
 Resize all product images to 1000x1000pixels.

The exact details of what you need to have and the format it needs to be in will be defined by the website or
marketplace you use to sell via B2B e-commerce, so whilst it’s worth starting getting it organised now, there
will be more do once that decision has been made.

1.25 Getting your systems ready

Part of the attraction of selling via e-commerce is that a lot of admin can be done by systems, to take
advantage of these time savings it’s necessary to make sure the existing systems are ready to integrate with
the B2B e-commerce channel, and handle the orders.

Product information system

Existing product information needs to be passed up to the website, so that the same accurate product
information is available on all systems.

Stock information

Whichever system you store stock information in will need to update the website with how many of each
product you have in stock. Otherwise you risk selling products you don’t have in stock, and possibly failing to
sell product that is in stock. That means that stock data must be accurate too.
Order processing and logistics

Whichever systems you use to manage picking and packing placed orders will need to be able to accept
orders from the B2B e-commerce platforms you launch on.

You’ll also need to have the logistics systems in place ready to get the orders to the customers.

1.26 Answer the question

Feedback

1.27 Answer the question

1.28 Thank you for completing the lecture