The Biggest Disruptor for B2B Business in 2022

The Biggest Disruptor for B2B Business in 2022

by | Jan 8, 2021 | Commerce Strategy, Web Development

At HPE Discover in June 2020, former Cisco CEO turned Venture Capitalist John Chambers shared this warning to business leaders around the globe:

 

“40% to 50% of the Fortune 500 will not exist in a decade, it’s going to be a brutal change. These terrible events we’re now seeing will accelerate that. Probably 60% of the startups won’t exist in a decade and several won’t exist in two to three years. So, it’s a period where you either disrupt or you get disrupted.”

 

Disrupt, or Get Disrupted.

 

Buyer habits and demographics are changing rapidly, forcing B2B companies to fight tooth and nail for attention. But, how do you disrupt a trillion-dollar industry like pharma or manufacturing?

 

The key is creating a centralized, easy to use interface for buying and selling online. One that easily connects buyers and sellers while collecting valuable customer data. For these reasons, 2021 is quickly becoming the year of the B2B marketplace. So, what are B2B marketplaces and what advantages can they provide you?

 

What is a B2B Marketplace?

 

what is a b2b marketplace buyer portal online digital market

 

In the same way Amazon allows consumers to purchase items from 3rd party vendors on Amazon.com, corporate megaliths like 3M and AB InBev now have online portals that provide better buying experiences for their vendors. In other words, a B2B marketplace is an online store that uses eCommerce functionality to let buyers view different brands and product lines from hundreds of vendors all in one place. Buyers using these B2B marketplaces can easily compare prices and products to ensure they order the products they need at the best price.

 

 

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The industry shift to online marketplaces is not only a result of new software specifically designed to help B2B companies operate more efficiently… Early last year, Bank of America analyst Justin Post said the firm expected Amazon to capture 10% of the addressable B2B market by 2021. Since then, companies around the world from aerospace to construction and more have been launching online marketplaces left and right, hoping to get ahead of the curve. If the alarm bells aren’t ringing yet, they should be, as Amazon’s incredible ability to scale will soon disrupt B2B the same way it dominates retail today.

 

Competition aside, giving your vendors and buyers a “one-stop shop” experience is just good business. And make no mistake, B2B marketplaces give incredible benefits to the businesses that own them. Let’s take a look at two top companies to learn how their marketplaces strengthen their overall strategy.

 

Strategic Advantage: AB InBev’s B2B Portal

ab inbev b2b marketplace portal store digital b2b market

 

In December, global beer distributor AB InBev (owner of top brands like Budweiser, Corona, and Stella Artois) constructed a one-stop shop B2B marketplace for all the individual vendors of their products. With 98% of AB InBev’s business coming from B2B distribution, providing their sellers a much easier to use and automated way to order stock was extremely important. After generating $6 million GMV in the first month, AB InBev plans to scale this digital platform continuously in 2021 and beyond.

 

Their new B2B vendor portal also allowed them to map the customer journey for all their vendors. With this insightful data in hand, AB InBev is armed with the tools to continue to improve their buyers’ experience. The data also helps them stay ahead of buyer trends as they change with seasonality and other variables. Constantly improving and changing, the marketplace gives AB InBev added adaptability and flexibility with their commerce operations.

 

Strategic Advantage: 3M’s Marketplace

 

3M also launched a new B2B marketplace this year where their channel partners can all sell their products independently on the same platform. They took a different approach; instead of controlling the buyer process, they allow their channel partners to control all the selling and transactions, even with their own offers and pricing. 3M only facilitates the connection between their partner sellers and buyers. 3M simply provides the front end and a premium customer experience.

 

This hands-off approach allows 3M to oversee all of their online product sales without having to micromanage vendors. It also allows them to give their vendor customers a better, more efficient buying process while avoiding channel conflict.

 

Top 5 Features of B2B Marketplaces

brandless b2b marketplace online chemical healthcare portal

 

What are some of the biggest benefits of implementing a B2B marketplace?

  • Providing faster ordering and automatic reordering, custom pricing, minimum order quantities, shipping options, payment options, and other premium digital features to your customers, all without calling a sales rep.
  • Allowing your business and/or individual BUs to scale faster in a rapidly changing digital ecosystem.
  • eCommerce platforms, especially SaaS platforms, are easier to maintain and upgrade as needed, compared to manual and physical supply-chain infrastructure.
  • Digital systems provide employees with much-needed assistance with automation and analytics, enhancing the capabilities of your teams from sales and marketing to accounting, tax, compliance, and more.
  • Making things much easier on their sellers and vendors helps them thrive in this new ecosystem as well, connecting digital systems and speeding up processes for everyone.

With online orders reaching levels previously expected 10 years from now, making the buying process as easy as possible is crucial to ensuring products get to the right places at the right time.

 

For companies with multiple brand names under their umbrella, the need for an online marketplace becomes even more apparent. The more complicated the fulfillment process, with multiple warehouses, distribution centers, and massive amounts of inventory, the more necessary a comprehensive online portal becomes to automate and speed up these processes.

 

Different Types of Marketplaces

walmart b2b marketplace digital online portal marketplace

 

All kinds of companies are building B2B marketplaces to expand their digital capabilities in 2021. Walmart has launched a digital marketplace, shown above, to compete with Amazon. This allows for a much larger selection of brands and sellers to sell on Walmart’s website. Giving Walmart an even larger market share than they already had.

 

honeywell b2b marketplace buyer portal online digital

 

Outside of CPG, a household name in Aerospace manufacturing Honeywell established the Honeywell Marketplace for aerospace parts companies, and in an industry dominated by brand loyalty and trust, it’s almost impossible to get buyers to see your products if you aren’t on Honeywell’s trusted marketplace.

In Healthcare, Fulcrum Digital and Redstage collaborated to create an online buyer and seller marketplace for DMEhub, a seller of durable medical equipment. A more creative use for a B2B marketplace, DMEhub was able to greatly increase the speed and rate at which they could accept orders of important medical equipment while staying 100% HIPAA compliant.

 

The incredible number of uses and benefits of creating marketplaces for connecting buyers and sellers is well documented. To become a digital leader in 2021, innovation and creativity is sorely needed, and we’re finding new ways to use them every day!

 

Let’s Get Started!

Remember, 40% to 50% of the Fortune 500 will not exist in a decade. So, for companies on the list looking to stay there, and for rapidly growing companies looking to make their first appearance on the acclaimed list, the message stays the same:

Disrupt, or be disrupted.

The biggest disrupter for these businesses is going to be major marketplaces increasing customer’s ease of access to multiple vendors and confidence they’re making the right decisions. It’s time for you to provide the same value as Amazon, if not more.

Not sure where to start?

Redstage is offering completely free eCommerce and business analysis to the first 5 merchants who schedule one. Schedule your free website usability assessment here and find out where you stand compared to others in the same space. Check out our Top 5 B2B eCommerce Features customers are requiring from merchants here.

Want to learn more about marketplaces and other B2B trends? Check out our webinar on the biggest eCommerce trends we saw during the last year with our CEO here. 

Four Ways to Easily Upgrade Your Customer Experience

Four Ways to Easily Upgrade Your Customer Experience

by | Nov 28, 2020 | Commerce Strategy, eCommerce Platforms, UX/UI Design

Thanks to a global boom that shot eCommerce 10 years into the future, companies around the world are quickly adapting to the new normal. In an ocean of different brands from consumer goods to luxury products and more, all investing in strengthening their eCommerce operations, how does a merchant differentiate themselves from the competition?

 

“Some B2Bs are poised to adapt and take advantage of investments they have made in eCommerce and digital marketing. However, many B2Bs are going to be caught flat-footed, having delayed investments in the past or shying away from eCommerce due to internal channel conflict. The time to act is now.”<span class="su-quote-cite">Brian Walker, CSO at BloomReach</span>

 

Your online shopping experience is your business’ most valuable asset. According to PWC’s research, 73% of customers said that shopping experience is a decision-making factor for them. Another study showed that most buyers believe new technologies improve the purchasing process, on and offline.

We interviewed experts from Redstage, BigCommerce, and Threekit to discover how online merchants can upgrade their customer experience and stand out in a hyper-competitive marketplace. Watch the video interview here.

 

 

Meghan Stabler

Meghan Stabler

VP of Global Product Marketing, BigCommerce

With 20 years of experience in product marketing, Meghan leads Global Product Marketing and Communications for the multinational SaaS juggernaut, BigCommerce.

Christopher Yin

Christopher Yin

Global Creative Director, Fulcrum Digital and Redstage

Since creating award-winning online experiences for Fortune 500’s like Crayola, Pfizer, and Macy’s, Christopher helps ensure Redstage’s customers get the same treatment.

Marc Uible

Marc Uible

VP of Marketing, Threekit

Marc has spent the last decade doing marketing for PayPal and being an entrepreneur, helping companies customize products in 3D, Augmented Reality, and Virtual Photography.

 

 

 

1. 3D Product Models

 

 

Online product experiences are changing. In an ecosystem that prohibits shoppers from going to physical stores (not to mention physical product demos), 3D interactive product models are a must. In 2016, the average customer expected to view 3 pictures of a product before purchasing. By 2019, that number rose to 8. In 2025, it could be 20…

Marc Uible poses the question:

 

“Are you prepared to show your customers 10, 20, even 50 images of a single product? Or could you offer a 3D rendering of a product that can be viewed from every imaginable angle and even placed in a [physical] space?” 

Marc Uible

 

The latter is a frictionless way of providing your customers with the confidence they need to purchase. This is where Augmented Reality comes in.

Imagine you are shopping for a stove on an online appliances marketplace. You don’t know exactly how much space you have, but you know the color and finish you want it to be. What kind of shopping experience do you need to experience to ensure that a stove matches your criteria? Check it out:

 

 

Stove Range

We designed this sample model of an AR stove range to show retailers and manufacturers how popular appliances and machinery can be viewed in a home or business setting from anywhere.

📲 Point your smartphone camera at the QR code to try it out, wherever you are!

 

 

The above 3D model provides shoppers with a way to examine every inch of the product. Unique experiences such as this one provide your customers with not only the confidence to purchase, but the confidence to continue to purchase knowing your online shopping experience is a better one than most.

 

“77% of customers have chosen, recommended, or paid more for a brand that provides a unique or personalized service or experience. Why? Because you’re creating something that feels unique to me. Like I’m in the store or demo, holding the product.”

Meghan Stabler

 

Further, providing interactive 3D renderings for customers to see can help retain customers and cultivate ongoing relationships. Utilizing 3D renderings is great for: 

 

  • Upselling: If extra parts or accessories are available, showing them in tandem with your products so customers can see how and why they should be bought together. Giving customers confidence that you are providing the best service and products keeps them with your brand for life. 
  • Limiting mistakes: When anyone can see what a product looks likes, how it fits in their space, and the parts needed for it there are less mis-orders or mistakes in purchasing. 
  • Service: Make servicing and ordering of new machine parts much easier for customers by utilizing a blown up 3D model that allows them to visualize the part(s) that need servicing.  

 

“Customers are not only going to want these experiences but soon will come to expect that you have them. They will become the standard in eCommerce. If you want to compete with Amazon, you have to provide the same if not better shopping experiences.”

Christopher Yin

 

In conclusion, the main goal of your eCommerce store should be to make customers confident they are making the right decision in their purchase. With 3D models, you can do just that and more. 

 

  

 

2. SaaS eCommerce Platforms for B2B

 

Saas eCommerce Platforms for B2B

  

One of the biggest changes to the B2B buying market has been the change in the buyer demographics. Millennials, the age group of 18-34, are steadily becoming more and more of a percentage of the workforce worldwide. Specifically, becoming B2B buyers and decision-makers more often. In the age of Amazon, this age group is used to and expects great online shopping experiences now. .An eCommerce platform makes making these improvements less complex.

 

“As millennials come up in the workforce and start to have buyer decision making power, they’re starting to say: Hey, I’m on Amazon, TikTok, and YouTube all day, spending a majority of my day online. Can I buy this $50,000 machine that I need for my job online as well? You know, as a purchaser, can I buy it online and can I buy it seamlessly? That’s starting to be a real question in the B2B landscape, it’s pretty clear.” 

Marc Uible

 

“68% of buyers do not want to talk to a sales rep as their first touchpoint,” says Marc Uible, sourced from this Digital Commerce 360 article. “They want to know for a fact, does this company sell what I need and can I be confident it’s what I’m looking for…” the easiest way to do that is with an eCommerce store.

 

SaaS, or Software as a Solution, eCommerce platforms are in-the-cloud solutions that are automatically updated and maintained by the platform themselves. BigCommerce, for example, is a SaaS eCommerce platform that is utilized by both B2B and B2C enterprises like Avery Dennison, Ben and Jerry’s, and SC Johnson for their eCommerce operations. 

 

“In the B2B world, [millennials] experiences and expectations are still of the B2C world. So, we have to adopt the technologies of the B2C [industry] to enable our B2B buyers. B2B businesses are also beginning to expand their operations and their ability to sell direct to consumers as well. That’s where the experiences are going to delight.”  

Meghan Stabler

 

SaaS platforms are the perfect tool for B2B companies to go direct-to-consumer. A platform like BigCommerce can help implement a wide array of feature sets.

Nationwide distributor The Binding Source launched a direct-to-consumer eCommerce operation on BigCommerce and saw the difference within a month, with conversion rate boosts of 170% and a boost to their transaction volume of 33%. Utilizing the SaaS platform’s out-of-the-box B2B features, such as custom product filters and advanced shipping options, allowed the Binding Source to launch a feature-rich store that is still easy to maintain and customize.

 

“Redstage’s mission is to help create digital leaders in eCommerce across industries. We help manufacturers and distributors like The Binding Source sell more and give customers a better online shopping experience.” 

Christopher Yin

 

 

3. Virtual Photography

 

Virtual Photography eCommerce B2B

Visualizing products with multiple customization options can be tricky and expensive. Hours and hours of expensive photography and editing work can be saved by utilizing what’s being called Virtual Photography.

A Virtual Photographer can take a product rendering online and apply all the different customization options to it through CGI and 3D modeling. This saves the time and expense needed for major professional photography by allowing one product file to be customized in an endless amount of ways.

 

“Virtual photography is our ability to take all of those configurations, all of those 3D models, and actually render those out into photorealistic 2D imagery. We created 3 million images for Crate & Barrel in under a month without physical photography, but 3D modeling. So it’s just that amazing, sort of, high-fidelity visual that you can get at a massive scale.” 

Marc Uible

 

 

Virtual Photography Demo for

 

Customers have produced an 80% reduction in online returns and a 20% higher order value on average when Virtual Photography and 3D models are utilized. Why?

In apparel and furniture type applications, textures and fabrics are extremely important in helping customers understand and gain confidence in your product. These photo-realistic 3D models can represent the products more precisely than simple 2D images, thus ensuring customers understand the product they’re getting. 

 

 

4. Augmented Reality for B2B and B2C

 

In Home Retail Augmented Reality

 

3D and photo-realistic models aren’t the only implementations into your product pages that can upgrade your shopping experience. Utilizing Augmented Reality to allow customers to place and view your products in their homes is crucial in a post-COVID eCommerce world. Shoppers in today’s ecosystem are raving about AR, especially in fashion, consumer goods, and even trading cards? The numbers speak for themselves:

 

  • 61% of shoppers said they’d prefer to shop at stores that offer AR 
  • 71% of shoppers would shop at a retailer more often if they offered AR
  • 40% of shoppers said they’d be willing to pay more for a product if they could experience it in AR 

 

Taking 3D models further with Augmented Reality is a powerful way to ensure customers can see the products on them or in their space, like furniture or fashionwear, limiting returns and refunds and increasing customer retention. Retailers have reported that customers who used AR on their sites were 11x more likely to purchase than customers who did not.

 

“The current value of the AR market right now stands at $3.5 billion and is forecast to hit $70 to $75 billion by 2023. Especially AR, in this post-COVID world, has the unique ability to engage your customers like never before. Customers can now virtually experience the look and feel of a product that traditional photographs just can’t match, and differentiates from competitors leaning on photos.”

Christopher Yin

 

In the B2B space, manufacturers and distributors are implementing AR features online and wearables offline to massively increase productivity and efficiency in warehouses. Companies like DHL and and General Electric Renewables are implementing AR overlays on assembly lines and in fulfillment centers. They’re seeing huge boosts, like a 34% improvement in assembly time and a 25% increase in efficiency after implementation.

 

B2B AR Planning

 

AR can also be used to share product proofs and machinery details more quickly and easily to buyers and decision-makers at client companies. If you need consistent feedback from prospects, sending them AR proofs in the form of QR codes makes getting revisions and confirmation from multiple parties faster and gives them all the confidence to close on the decision.

 

 

“What we’ve seen is even when you’re buying a super complex piece of machinery, a QR code to that exact piece of machinery can be sent to your decision-makers and throughout an organization to get threaded into that organization. People see something in AR and say ‘Wow, I can actually see this million-dollar machine in my space, and it works!’ It really drives engagement and confidence in your buyers.” 

Marc Uible

 

 

What to do now…

 

These four commerce upgrading technologies are changing the way customers are experiencing products online. The more confidence your customers have in your products the more likely they are to buy and continue to buy. It is 5x cheaper to retain a customer than it is to gain a new one and providing the best shopping experiences is the number 1 way to retain customers. How do you provide today’s buyers with stunning shopping experiences? Allow them to experience your products in new ways!

 

3D models, Virtual Photography, Augmented Reality and open SaaS platforms are changing eCommerce just as COVID is, and the trends are continuously moving further and further, so don’t get left behind! If you’re stuck, contact an eCommerce consultant today and receive a free 1-on-1 demo of our 3D model and Augmented Reality capabilities.

 

You can view the video recording of our interview with Meghan, Marc, and Christopher here, with live demos and insights from Tony Lopez, Solutions Engineer at Threekit. Contact Redstage here to get a demo of any of the technologies mentioned above.

 

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