How to Stay Competitive In The Shifting B2B eCommerce Landscape

How to Stay Competitive In The Shifting B2B eCommerce Landscape

eCommerce and digital transformation are taking over the B2B industry at a rapid pace. Prior to COVID-19, 2020 was already looking like the biggest year in B2B sales by dollar value, operating at twice the size of the B2C market at $6.7 Trillion. Why are things changing so quickly, and what steps can you take to make sure you aren’t left behind?

 

Buyer Demographics

millennial eCommerce

A big part of this overall macroeconomic force is the changing demographics of B2B buyers. The B2B landscape is changing dramatically as Millennials take hold of most buying responsibilities in B2B and distribution to B2C firms. Unknown to most, millennials are already the largest generation in the workforce. By 2025, millennials will account for 75% of the workforce worldwide. This is a generation of digitally connected, technologically dependent, and software-savvy workers.

What does this mean for B2B companies? Right now, more than 46% of all B2B purchases are made by millennials. For millennials, the convenience and ease of digital buying experiences are more important than other factors impacting their choice to buy. In fact, 69% of millennials say that the ease of doing business is why they choose the companies that they work with. For more than two-thirds of the customers you attempt to sell to, your online portal or buying experience is the most important aspect of your business for retaining them.

 

“Millenials don’t want to have a conversation with a sales rep, they want to have a conversation with your website.” – Adam Morris, Redstage CEO

 

How Amazon’s Marketplace is Hurting B2B Business

b2b business

Pre-COVID, Amazon Business was projected by Bank of America to take 10% of the US market for B2B. With eCommerce and online sales booming during the crisis (up 25% industry-wide since March), Amazon’s dominant market share has only grown. How can Amazon’s push into the B2B eCommerce market hurt your business?

As the market expands, customers without brand loyalty will shop on the Amazon Marketplace for things like materials, parts, and even industrial chemicals. Customers will see your products alongside your competition, where the only comparable attributes are price and quantity. Without your differentiation and product knowledge, you are losing a large number of sales to competitors.

Many industry leaders are trying to get ahead of this trend. 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. This has given Honeywell a major advantage in the market in terms of industry leadership, as well as increasing revenue by being a “middle man” of sorts in the industry. However, it may hurt smaller distributors who are competing for sales with every one of their competitors also on the marketplace.

In another industry vertical, DMEhub partnered with Redstage to build a buyer and seller portal for durable medical equipment. The new site connected physicians and other medical practitioners with medical equipment suppliers directly, allowing consumers to get their medical equipment from an online marketplace with direct access to their prescriptions. This majorly cut down the timeline for accepting these orders, as well as greatly improving the security of highly sensitive medical data in the backend of the site. Learn more about the project here.

 

What can you do to get ahead of your competition?

b2b eCommerce

B2B eCommerce sales are growing 7X faster than any other electronic channel. Yet, only 73% of B2B sellers sell through eCommerce or online marketplace portals today. While that may seem fairly low, keep in mind that 86% of US-based B2B companies with over $500 million in annual revenue have already implemented these solutions.

What does this all mean? It means there’s still some room for companies to begin their digital transformation, adopt eCommerce, or build industry-specific online marketplaces. However, we’re starting to get to a point in this journey where executives have already thought through these strategies and have implemented or are implementing them. If you continue to hold off on digital transformation projects, your competition will start looking at you through their rearview mirror.

According to a study by McKinsey, B2B’s digital leaders in eCommerce are vastly outperforming their competitors. Digital B2B leaders who adopted online buying opportunities have reported up to 5x revenue growth, 8x operating profit growth, and up to double their return on shareholder growth. The value of showcasing your products to your customers, highlighting key product attributes, and allowing those customers to buy from you quickly how they want to, is extremely self-evident.

 

Final thoughts

As B2B online marketplaces and buying portals become more and more commonplace, the room to differentiate yourself is growing scarce. Don’t get left behind the pack by waiting to innovate, the time to utilize eCommerce platforms is now. Check out how we helped Zwilling Beauty Group boost their revenue year over year by 87% by tapping into the power of Magento Commerce Cloud here.

If you’d like to know more about how to implement these solutions or have any other technology questions, contact us here.

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Announcing our Partner of the Month: JASPER!

Announcing our Partner of the Month: JASPER!

In our industry, the creation of solid, valuable, and lasting partnerships is critical to our success. At Redstage, we prize the work we do with our partners, especially those that go above and beyond. This month, we want to highlight the incredible work of the Jasper team and thank them for continuously delivering in what has become one of our strongest and most valuable partnerships. We partnered up in 2019 when Redstage became an officially certified Jasper PIM software reseller and integrator. Learn more about how we work together on Jasper’s blog here.  

With its time-honored industry experience, Redstage is assessing product information needs of online retailers and helping Jasper PIM resell our powerful PIM solution to boost retailers’ online sales and marketing.” 

–Jon Marsella, CEO & Founder, Jasper PIM 

 

What is a PIM and why is it critical to eCommerce? 

PIM stands for Product Information Management software. Managing your product data across the web on multiple channels can be daunting, but it’s also a vital part of staying competitive in eCommerce. A PIM allows you to manage all of your product information from one dashboard with one backend. Whether you have products across multiple marketplaces, multiple websites, or even in multiple languages, a PIM allows you to keep your product information consistent and updated throughout your online sales channels to strengthen your omnichannel marketing 

Before using PIM systems, online retailers struggled with updating data in massive excel sheets or multiple platforms (like eBay, Amazon, Etsy, Rakuten, and more) or in the right language or price for different markets. With the right PIM, online retailers and vendors can unburden themselves from the time-consuming hassle of logging in to multiple websites and updating product information in numerous digital locations. 

You may be asking, Why implement a PIM? Or, “How can we calculate the return on investment of a PIM implementation? By decreasing item returns thanks to accurate product information, increasing your conversion rate, and expanding to other marketplaces and sites with updated product information, you can see huge boosts to revenue across the board. PIM also helps online merchants maintain product authority no matter where your products are featured or sold. 

JasperPIM

The Jasper Difference

With Jasper’s industry-leading PIM solution, business owners can simplify their eCommerce product management and grow into very successful merchants. Jasper’s motto is “Save Time. Save Money. Earn More.” and these phrases perfectly exemplify the core benefits a PIM software can have.  

Jasper PIM saves time by ending the need for long product information spreadsheets, saves money by increasing productivity and lowering the number of mistakes made, and allows you to earn more by increasing conversion rates and lowering item returns. 

Results and Success Stories

Having worked with Skullcandy, FitBitSherriltree, and more of the biggest brand names in eCommerce, Jasper has proven itself as one of the leading PIM solutions in the industry. Whether you manage products on 1 website, or more than 20, Jasper PIM provides multiple PIM solutions that can be tailored to your needs, ensuring your business’ success.  

Jasper’s world-class SaaS product information manager works for both B2B and B2C merchants and integrates into any Magento, BigCommerce, or Shopify store.  

Check out how Jasper worked with headphone manufacturer SkullCandy to align their product information in 6 languages and 4 different currencies with their extremely powerful PIM solution here. 

 

Learn More

To learn more about Jasper, contact them, or view more success stories, visit their listing on our partner page here. We’re proud to be part of such a collaborative and productive partnership. Thank you to the Jasper team for your continued support! 

3 eCommerce Technologies B2B Sellers Need for 2021

3 eCommerce Technologies B2B Sellers Need for 2021

In 2020, customers became bolder with their demands and expectations. You may have learned how to satisfy them with evergreen content, site optimization, and fraud protection. However, as 2021 picks up, merchants need to stay one step ahead of the competition by studying trends and going beyond customer expectations. Through convenience, conscious consumerism, and flexibility, these 3 eCommerce technologies help B2B companies boost sales and improve shopping experiences.

1. Conversational Search in the Rise of Convenience

 

voice search device for flexibility

 

Conversational Search is designed to mirror spoken search requests rather than keywords. Siri and Alexa changed the way shoppers navigate the Internet and retailers are finding new ways to implement “Conversational Search” in their SEO strategy. Thanks to technologies like Klevu, customers can interact with a search engine and find answers using their normal, natural language. Activating Conversational Search on your site gives customers easy, on-demand, and frictionless access to the information and products they want.

Conversational Search for B2B

Automated email blasts and informal sales outreach alone, no longer close B2B deals. 30% of web browsing sessions will be conducted without a phone screen this year. Ensuring your online store is ready to provide a simple experience through search is key. To reach your customers, you must:

1. Research: Optimizing search requires getting to know your potential customers. Research and learn the questions they’re asking, challenges they’re facing, their priorities, goals, favorite products, and the phrases they’re using to search for products you provide.

2. Optimize: Once you know your customers’ burning questions, conduct a full search audit, and optimize your site. Remember, 90% of executives research using their mobile devices before making a purchase decision. You can better serve your customers when your site feels conversational and your voice search feature is user-friendly on all devices.

3. Create Content: Voice-search optimization requires your content to reflect your buyers’ needs. It should be easy for your customers to navigate your site search through natural conversation. Include “ask keywords” in your voice search strategy that answers your buyers’ questions. Some examples include, “how can I strengthen my eCommerce strategy? ” or “what are the product benefits?

2. Loyalty’s Place in the Rise of Conscious Consumerism

 

loyalty card in wallet for flexible purchases

 

In 2020, “Conscious Consumerism” became mainstream. Now 65% of global consumers make belief-driven purchases. In addition, 66% of shoppers choose to stay loyal to brands that share their values.

Implementing platforms like Loyalty Lion will allow merchants to create unique loyalty programs. This will make it easier for customers to practice “Conscious Consumerism” while building authentic relationships between you and your customers.

Loyalty programs employed by companies like Stay Wildish are built upon members completing monthly challenges in exchange for points. Shoppers can then donate their points to non-profit organizations. This keeps customers returning to engage with the program as they earn social rewards they value.

Customers who are aligned with your mission are more willing to act as advocates and share brands with others who have similar values. By appealing to what your customers want, you’ll secure their loyalty long-term and increase their lifetime value.

Loyalty for B2B

To encourage your existing customers to return, implement a loyalty program in your B2B strategy that can help you acquire like-minded customers who will convert faster and stay loyal longer. According to B2B Marketing Academy, loyal customers are five times more likely to make a purchase and forgive mistakes. They’re also seven times easier to upsell if you include:

1. Personalization: One loyal customer equals a steady source of income. While B2B companies offer a smaller pool of customers than B2C, it’s critical to add a more personalized touch.  Your customers are online, meet them there. Personalize their emails, and provide multiple ways to communicate messages to them such as text alerts. Personalization efforts can drive a six-fold increase in sales!

2. VIP Rewards: Customers love specialized perks. Don’t waste a good email without offering your customers exclusives like reward points, product sampling, and early access to promotions. Keep your customers’ goals in mind by figuring out how your reward points can directly impact their lives and be useful beyond your company’s objectives.

 

3. New Expectations Demand Shipping Flexibility 

 

Shipping Flexibility

 

Customers want options, and they want them on their terms. Fast shipping, however, is no longer an option but an expectation. Retailers need to start looking at innovative and alternative shipping services and tools like ShipperHQ to meet these new expectations and create new and better experiences for customers.

BOPIS (Buy Online, Pickup In-Store) is a relatively new buying option that continues to rise in popularity. Like B2Cs, B2B companies are implementing this strategy to change how they interact with their customers. Just think about it, if your customer needs a machine part or tool that day, BOPIS allows them to buy it through your website in minutes and pick it up at a nearby store, reducing their project timeline. This also helps with items that have shipping restrictions and can take a long time to arrive where the customer needs them.

Additionally, 75% of BOPIS users make unplanned purchases while they’re in your store, according to Agilence. If Home Depot, Lowes, and Amazon can offer BOPIS options, it’s time more manufacturers and distributors take advantage of this powerful technology.

Other buying options include above-and-beyond services like same-day, white-glove, or in-home delivery. The construction, wholesale and distribution, and automotive industries can benefit greatly from it. For example, construction employees are often sent out to pick up orders. Same day delivery can save project managers time and money. These implementations will keep merchants ahead of their competition and improve customer experiences.

Shipping Flexibility and B2B

B2B customer demographics are shifting. Millennials are becoming decision-makers and they’re expecting miracles. More than next day delivery options are driving sales, they’re relying on innovation and technological advantages to make their lives as buyers easier. Shipping is one of the buyer’s final touchpoints and  B2B companies can improve these experiences through:

1. Price Transparency: B2B customers expect online stores to reveal shipping costs before purchasing. Consider options that are fast and can cut down shipping costs.

2. Flexible Returns: The ability to provide flexible and easy return options will make or break your reputation. To keep your customers’ trust, provide a clear and easy return policy on your website and include return labels with shipments.

3. Efficient Distribution Strategies: B2B eCommerce sales in the U.S are expected to exceed $1.18 trillion by 2021. Success in the marketplace comes from adapting to customer demands but also being aware of rising threats. Adding more distribution centers and new technologies that can improve tracking of shipments, real-time traceability, and threat detection such as environment monitoring can help streamline logistics.

 

Final Thoughts

Your recipe for success in 2021 is to take today’s latest technical capabilities and implement them, while also looking ahead to future trends. Effectively engaging customers at the beginning of their shopping journey, encouraging repeat purchases through advanced search, loyalty programs, and shipping convenience should be at the forefront of B2B executive’s minds.
 
Olam International, a multi-national agriculture distribution powerhouse, has already implemented new shipping solution ShipperHQ along with advanced search by Amasty and Customer Approval extensions from MagePlaza with Redstage’s help. Utilizing Magento 2’s out-of-the-box B2B feature set, we helped Olam digitize operations for multiple multinational stores; OlamSpices.com, OlamSpecialtyCoffee.com, and OlamEdibleNuts.com. The latter of these being the first and only online portal for edible nut distribution in the world. B2B companies that not only keep up with trends but stay ahead of them will remain one step ahead of their competitors as well.
 
To find out how you can integrate these technologies and more into your 2021 eCommerce strategy, book your free consultation with Redstage today. And if you’re thinking about upgrading to Magento 2 but are strapped for time, learn more about our 40-day B2B accelerator here. 
New Austin, TX Office & VP of Client Services for Redstage

New Austin, TX Office & VP of Client Services for Redstage

Austin, TX – 9/22/19 – Redstage, the award-winning eCommerce development agency, welcomes Jason Crickmer as VP of Client Services and Solutions. The new member of the executive team will manage client-facing delivery and project management from the newly opened U.S. office in Austin, Texas.

The Austin office complements Crickmer’s appointment to jumpstart and lead growth in the southwest USA. “I am honored and excited to be leading Redstage’s growth in this market, knitting even tighter connections to our partners and clients in this region,” said Crickmer.

Previously, Crickmer served as the CEO of Praxis Information Science and Vice President of Customer Success at Alegion. His 25 years of experience in software engineering, strategy, client services, customer success, product, and team development serves to strengthen team organization and provide superior customer experiences to clients.

“Texas and the southwest are a major hub for eCommerce and Austin in particular, is the nexus of it all. Several of our closest partners like BigCommerce, PayPal, and Adobe are either headquartered there or have a strong technical presence in Austin,” said Crickmer.

As part of the Fulcrum Digital family of companies, Redstage is supported by more than 1,000 employees around the world, with offices in the US, UK, Brazil, Argentina, India, and Australia. The Austin office represents Redstage’s 9th location. The agency’s B2B portfolio that currently includes Church & Dwight, Olam International, Reckitt Benckizer and more.

For more information regarding Redstage’s B2B eCommerce services, click here.

About Redstage
Redstage modernizes and supports digital systems for B2B companies through end-to-end eCommerce services to drive stable, long-term growth. The agency specializes in the latest technology, with a reputation for bringing storied B2B companies into the digital age and teaching them to scale further, faster. Driven by experience. Guided by innovation is the Redstage code. Redstage’s goal is to accelerate eCommerce development, inspire confidence, and empower digital retailers.

 

Ghosts of Black Fridays Past: 3 Crucial Warnings for Retailers

Ghosts of Black Fridays Past: 3 Crucial Warnings for Retailers

Congratulations! You survived the Back to School retail surge. While the true test of eCommerce performance is yet to come, any hurdles you encountered during Back to School should be taken care of well before then. Consider these your warning shots. To help, here are 3 precautionary measures you can take to digitally strengthen your store for the holidays.

 

1. Stress Test to Avoid Lost Revenue

A wave of more than 6.2 billion shoppers will descend on digital retailers during Cyber Week. Unfortunately, not all businesses are prepared for success…

For example, J. Crew’s site crashed on Black Friday in 2018 and issues persisted throughout the afternoon. Analysts predict the outage cost the company around $780,000 in just five hours. Shoppers flocked to Twitter to complain en masse, causing a firestorm of anger to erupt across the web. This is where the real damage was done.  Like a ghost story from holidays past, this is a warning for retailers everywhere to change for the better.

 

Adam Morris, Redstage CEO

Redstage’s CEO Adam Morris identified the top “holiday rush” issues we’ve helped clients through in years past. Here’s what to watch out for:

1. Slow Site Speed

2. Price Caching

3. Broken or Buggy Checkout

4. Server Overload or Timeout

5. Add to Cart Features Failing

 

“The holidays are a time of increased profits, but that comes with a huge load on websites,” Morris says, “So if you haven’t done proper stress testing to account for higher demand, you won’t know how your online store is going to react.”<span class="su-quote-cite">Adam Morris, CEO at Redstage</span>

 

Preparing for the worst now can save you money and your reputation later with one simple step— testing. Skipping this step could spell disaster that leaves the specter of poor service hanging over your reputation for years to come.

 

black friday, cyber week

2. Your Back-End Checklist at Present

From Thanksgiving to Black Friday through the end of Cyber Week, retailers have a few critical days to rake in as many sales as possible. During this shopping frenzy customers both in-store and online. Regardless of how they buy, your online store (or your app) will more than likely be their first stop. We developed a checklist of what you can do today to ensure your eCommerce site survives Cyber Week.

  1. Optimize your site’s user experience with A/B testing.
  2. Check your indexing to avoid price caching.
  3. Review all error codes to avoid a broken checkout.
  4. Avoid overload and crashes by scaling your server.
  5. Double-check key functions to avoid important features failing.
  6. Complete load testing to prepare for an increase in traffic.
  7. Utilize an automated monitoring system for real-time updates on 404s and checkout errors.
  8. Upgrade your payments and security platforms to prevent payment fraud.
  9. Lastly, be prepared to scale up your support team on the fly. If something goes wrong, even for a few minutes, you’ll need a sizable support team to manage angry customers and correct the issues.

 

“If you’re not using visitor data to identify the friction points in your checkout, you risk focusing your budget in the wrong places. A data-driven approach to optimization means trusting your analytics even when the message is counter-intuitive.”<span class="su-quote-cite">Oliver Sosinsky, Sr. Solutions Engineer at Redstage</span>

 

Learn a valuable lesson from LuLu Lemon. Last year, the athleisure brand’s site went down the morning of Thanksgiving Day. Shopper outrage hit Twitter at 8am EST with a “Site is down. Ugh!”

In the first minutes of the shopping event of the year, the brand was stuck, entangled in crisis. Once the site got back online, more errors appeared, causing sales prices for in-cart items reset to regular prices or prevent customers from checking out.

With proper bug monitoring and back-end preparations, this fiasco could have been avoided. Take a page out of our book and start monitoring now. You’ve done the legwork to bring customers to your site, now protect it.

 

black friday, cyber week

3. Capitalize on the Future

A single visitor doesn’t guarantee a transaction and a single transaction doesn’t guarantee a loyal customer. Flawless mobile experiences will do both, but takes some serious testing.

Conversion rate optimization turns your visitors into customers while ensuring they receive an immaculate customer experience. While no two customers are the same, simple tests can lead to enhancements that remove friction from the checkout and dramatically reduce abandoned carts.

Merchants like LawnmowerTirestore.com took advantage of testing their site before the holiday season and the results were a game changer. By making their checkout button stick to the site’s header and follow users while they scrolled, sales soared with a 29.5% increase in revenue per visitor (RPV) for desktop customers. For mobile, the test yielded a 7% increase in RPV, after only 4 weeks of testing. Now, Lawnmower Tirestore plans to roll-out the feature site-wide to capitalize on their new-found data-driven advantage.

As part of the Mobile Optimization Initiative, retailers can receive checkout tests 100% free. The goal of the initiative is to create a set of best practices for mobile optimization and share our insight with the world. Read more about the initiative here.

 

black friday, cyber week, cyber monday

Final Thoughts

According to Internet Retailer, 60% of consumers plan to spend 50% or more of their holiday shopping online; spending over $21.6 billion during Cyber week.

It is not too late to prepare. If you start early enough and cover all the bases, you can sit back, relax and watch your revenue grow with measurably less stress. Remember, this is your holiday too. While there’s still time, monitor your site for bugs, load test, A/B test, utilize the data, capitalize on those results, and enjoy some eggnog.

Cheers!