Sandbox
Production
Ways to Accept Payments
Cross-Border Payments
Payment Optimization
Payment Types & Currencies
Fraud Prevention
Chargeback Management
Compliance
Payment Analytics & Reporting
Benefits
Features
Developers
Accounts Receivable Automation
Subscriptions & Recurring Billing
Invoice Payments
Virtual Terminal
B2B eCommerce is hardly new, but most companies are far from perfecting the experience. China’s Alibaba pioneered the category 25 years ago with the launch of its online B2B marketplace, which has ballooned to over 200,000 suppliers. Now, about two-thirds of B2B companies offer an eCommerce option, according to McKinsey. Moreover, 74% of B2B buyers in a survey by BigCommerce, a BlueSnap integration partner, said they buy goods online, most often through a supplier’s portal or app. They aren’t forced to buy this way — 75% of B2B buyers told Gartner they “prefer a rep-free sales experience.”
Today’s B2B buyers are demanding a seamless purchasing experience, including transparent product, pricing and inventory information, followed by a frictionless checkout process that includes various payment methods and terms. This trend is not only reshaping B2B eCommerce, but it also serves as a compelling call to action for businesses to modernize their operations or risk falling behind.
Here’s the rub: many sellers resist B2B eCommerce because it entails a change to payment methods that, on the surface, seem more expensive. In BigCommerce’s B2B survey, 89% of respondents in the US say they prefer credit cards. Debit cards, ACH and purchase orders don’t even come close. Who wouldn’t want to earn miles, points and status by spending corporate funds? Still, a company accustomed to accepting checks might balk at 2% to 3%in card fees while failing to consider the costs of processing invoices manually.
Now that B2B buyers have grown accustomed to Amazon and its peers in their daily lives, they want that experience when they buy things on behalf of employers. Placing an order by card, whenever you feel like it, is clearly more efficient and convenient than spending 30 minutes on the phone while a salesperson tries to cross-sell and upsell. Granted, for complex products with safety and compatibility concerns, consulting a salesperson is still important. Even then, however, the transaction can still be made through an eCommerce portal.
“As B2B eCommerce continues to grow, businesses need to strategically adapt, ensuring they’re not just present online but are also offering a frictionless, compelling purchasing journey,” says Lance Owide, General Manager B2B for BigCommerce. “It’s important to understand that the path to success in B2B eCommerce is paved with a customer-centric approach, leveraging technology that meets buyers where they are. Businesses need to be empowered to deliver seamless experiences that are as robust as they are intuitive, setting the gold standard for customer satisfaction and operational efficiency. Payments are a crucial part of the customer journey, and at BigCommerce, we see that customers who offer the payment types buyers expect and seamlessly integrate with back-office systems, like ERPs, are able to create buying experiences on par with B2C.”
For suppliers, the question isn’t whether to sell online or not. That ship sailed. Rather, the question is how to maximize conversions, minimize costs and keep customers happy. Try these tactics:
Orchestrate Payments to Match Your Geography
BlueSnap routes cross-border payments to eliminate cross-border interchange fees while providing local payment options and currencies. Keep in mind that with a payment orchestration platform, cross-border payment optimization can be combined with online and mobile checkout, B2B online stores and individualized customer portals.
Consider Surcharging
Some B2B companies are requiring customers to shoulder fees if they choose to pay with a credit card. Surcharging is legal in all but three of the 50 US states. And unlike consumers, businesspeople are usually fine with paying card fees because a) It’s not their own money, and b) Again, they like points. Don’t necessarily expect surcharging to drive people towards ACH and SEPA — just make sure those options are available.
Experiment with Emerging Payment Tech
If a purchasing agent typically makes 20 transactions per day and each checkout takes five minutes, that’s an hour and 40 minutes gone. A digital wallet could slice that manual work down to 20 minutes, easily. Similarly, purchasers who need financing or term payments might have to set that up manually with a supplier — but not if the supplier has a tool to handle it automatically and offload the risk. Think BNPL, but for B2B.
The Bottom Line for B2B eCommerce Today
If you sell goods that don’t require heavy customization, consulting and compatibility checks, double down on B2B eCommerce. Make it as easy as possible for B2B buyers to pay with the payment method they prefer and the customer experience they prefer. The savings in labor and reduced friction with customers will more than offset card fees.
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