All analyzes confirm that e-commerce is a great opportunity for B2B and a simple way to cover global markets. According to a forecast for 2013 by Goldman Sachs, direct Internet transactions between suppliers and business customers will reach USD 1 trillion. In addition, various studies have shown that nearly 60% of companies prefer buying directly from manufacturers compared to traditional distribution chains.
So why are manufacturers so hesitant with implementing e-commerce? The main reason is the fear of disruption of traditional sales channels. But they can not endlessly ignore new needs and expectations of their clients: Corporate customers want to order in real time, a possibility of modifying their order or cancel it, they want access to the latest technical information and updates, to see the number of products in stock, order status information, in short, they want to have what is common in B2C online stores. And all this from the comfort of their office, from home or from a smart phone.
How to achieve harmony across different distribution channels?
Direct channel eliminates many of the costs of managing distribution channels, but it is particularly important from the perspective of customers. The real problem is not technology, but the people. They have to manage the relationship between direct e-commerce sales and traditional distribution chains.
To create harmony across distribution channels, there needs to be a transparent model, in which all participants understand their role. In addition, it is necessary to understand the different customer groups, and how they fit into the portfolio of products offered by the company.
First, it is necessary to have a well elaborated customer segmentation and then consider which distribution channels are most suitable for each segment. Certain groups of clients may require special customization of products or special technical support. While others want a quick option to order without obligation. And another group may be willing to commit itself to contract over a number of years in exchange for a better price.
Traditional supply chain participants can be motivated by commissions, bonuses or other rewards in order not to spare their efforts. Some manufacturers offer special commissios for renewals of contracts with customers who first ordered over the internet. Thanks to that, the distributors save high costs of the-first-time customer acquisition. On the other side, suppliers have the advantage of repeat orders, which are less likely via e-commerce.
The entire distribution chain must be properly trained so that they understand the added value of all subjects involved. However, first it is necessary to explain the benefits of this sales channel in the company where it should be introduced. The sales department must understand that the website with direct selling may eventually enable them to achieve higher commissions.
B2B e-commerce will soon enter into sectors where we were not used to seeing it. Companies is in competitive environment will have no choice: They will be under increasing pressure to better serve customers who want a simple, quick and convenient shopping experience, and a better control of their distribution costs.
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