Large average deal size. A B2B company can grow sales with a smaller number of high-value deals compared to a B2C company, which may require thousands or even millions of individual sales. Since B2B companies sell and buy in bulk, the average B2B transaction is about $491, as opposed to $147 for a B2C sale.
Higher switching costs. B2B customer loyalty is likely if they are satisfied with the product and service. In contrast, B2C customers can be finicky and not loyal, resulting in large churn rates.
Large market potential. B2B companies can target enterprises across many industries and geographies, resulting in a big playing field. Or they can specialize in one industry, Top lead generation company in Canada such as technology, and become leaders in that field.
B2B organizations advertise their products and services and conduct business online, making it easy for clients to place bulk orders via an efficient digital transaction model.
Faster delivery. Because B2B e-commerce tools make the sales process efficient for sellers, they accelerate the process for buyers. Integrated systems enable the transacting companies to sync data across channels, automate fulfilment and inventory updates, and manage complicated orders.
Built-in order management Cloud-based e-commerce platforms easily integrate with back-end systems or order management systems. This enables B2B sellers to synchronize order inventory and customer data across every channel.
B2B challenges
B2B e-commerce has some challenges, such as the following:
Long-term customer retention. B2B companies often have a difficult time convincing buyers to make repeat purchases.
Limited market. Although B2B companies can target organizations in many industries, the business market is still limited in size. This makes B2B particularly risky for small and midsize B2B organizations.
More competitive. Since the B2B market is small, it's competitive.
Longer decision-making process. Decision-making in business can be slow because many stakeholders are involved in the process.
Price negotiation. Top lead generation firm in Toronto, Canada Since B2B buyers purchase in bulk, they typically negotiate for better prices, ask for discounts or demand extra services.
E-commerce supply chain management can be complicated. This is especially true when multiple partners are involved in the supply chain and they all need access to the same information. Miscommunication at any point in the supply chain can slow down the process.
What are examples of B2B companies?
Here are some examples of B2B companies:
Amazon
Amazon, one of the best known B2C companies, also has a B2B business called Amazon Web Services (AWS). AWS provides compute power, database storage, content delivery and related features to businesses. It is one of the leading cloud providers with customers such as GE, Hess, Expedia, Philips and BP. AWS Cloud spans 80 availability zones within 25 geographic regions, globally.
Caterpillar
Caterpillar manufactures construction and mining equipment, diesel and natural gas engines, industrial turbines and diesel-electric locomotives and sells these products to other businesses. The company also provides financial services to businesses through its Caterpillar Financial Services business unit.
Alibaba
Alibaba is one of the world's largest online commerce companies. Best Outbound Call Center The Alibaba B2B marketplace is where buyers and sellers worldwide connect and transact business.
Quill
Owned by Staples, Quill is a B2B e-commerce company that sells office supplies to small and midsize businesses. Quill markets over 100,000 products under the Quill brand, as well as under the Medical Arts Press, Mead, Coastwide, Snack Jar and Java Roast names.
Upwork
A job search platform, Upwork connects freelancers with employers on projects such as web and mobile app development, social media marketing, content writing, graphic design and more.