Digitalization in B2B retail

Technical report by Denis Rathig

How to successfully launch a B2B web shop

Digital commerce has also long been established in the business customer segment. However, setting up a B2B online store is not enough. To really benefit from the advantages of e-commerce - optimizing and automating business processes, opening up new sales channels, saving time and costs and increasing customer loyalty - you need a professional e-commerce platform. Only with the right technological foundation can online retailers meet the rising expectations of their customers today and in the future.

Today's business customers expect the same shopping experience that they are familiar with in their private lives: personalized, convenient and networked across all channels - with first-class service around the clock. Even in the B2B environment, nothing less than the perfect customer experience is needed to win over customers and retain them in the long term. This requires an omni-channel-capable e-commerce solution that integrates all contact points along the customer journey, links all relevant data from different company systems and makes it available in real time. It should be noted that B2B e-commerce is much more complex than online retail with end customers. Differences arise, for example, due to

• Support for traditional sales
• Complex decision-making and purchasing processes
• Individually configurable offers (Configure, Price, Quote - CPQ for short)
• Individually negotiated conditions
• Flexible quote generation from recurring orders
• Highly differentiated price models
• Goods produced on-demand
• Multiple purchasers from the same customer, each with different authorizations
• Existing interfaces to the customer's procurement and ERP systems

Mapping complex requirements as needed

A standard online store solution falls short here. A B2B company that wants to serve different customers with the same digital platform needs a multi-client capable e-commerce solution that integrates data from different sources. The complexity is even greater for internationally active companies, where individual companies, business units and brands need to be mapped in separate stores. This is the only way to take into account country-specific requirements for language, design and product licensing.

Analyze the current situation and define expectations

As high as the requirements are, the technological basis is sobering in many places. The majority of companies use PIM and CRM solutions in addition to an ERP system. However, these systems are often not interoperable, as the data pool of master data, product references and price information is highly complex. Companies that want to consolidate their data and processes across systems need either bidirectional interfaces that can be used to link and evaluate data in a meaningful way. Or middleware that allows them to connect different systems centrally. This not only saves the time and cost-intensive preparation of data for the online store, but also reduces the maintenance effort.

In addition to the technology, support from the relevant specialist departments is also essential. E-commerce managers must clearly explain that the B2B store is not in competition with established sales channels, but is an effective tool for improving sales of products with a high stock turnover rate (so-called fast-moving items). If the online store is available to the sales department as a mobile solution, the sales representative can enter the customer order on site using a smartphone or tablet and transfer it to the ERP via an interface. The automated handling of order processes saves time, reduces costs, increases customer satisfaction and relieves the burden on sales.

Finding the right software

In order to take the complexity of B2B e-commerce into account, it is advisable to select flexible and scalable software. Most e-commerce solutions have a high level of maturity, but sometimes differ greatly in terms of price and range of functions. Even in the basic version, internationally established standard solutions offer numerous expandable features that B2B companies can use to develop and expand their online business: They are usually multi-client capable and support the management of numerous subshops via a central backend. Release workflows, pricing options and product configurators can also be quickly implemented via extensions, which significantly shortens the time to market.

Functions that go beyond this are usually provided either by the manufacturers themselves or by specialized providers via B2B-specific extension packages. When deciding on software, B2B retailers should make sure that it has a modular structure and is scalable. This means that lean application scenarios can be implemented just as easily as fast-growing and high-turnover B2B stores. If the service provider landscape behind the software is broadly based, this makes it easier to add additional functions. Companies are well advised to choose an integration service provider that has industry and B2B expertise as well as experience in interface programming.

Open source or proprietary solution?

When deciding on e-commerce software, companies should outline their requirements precisely. In addition to proprietary solutions from large providers, such as SAP Commerce Cloud, there are a number of flexible, highly scalable store frameworks. E-commerce systems based on open source software (OSS) often impress with their high development speed: because the source code is open and, in principle, anyone can modify the software, OSS web stores can be quickly adapted to individual requirements as needed. Leading open source software solutions such as Magento Open Source and Shopware Community Edition are backed by well-connected developer communities that proactively drive the further development of the software. For example, there are strategic roadmaps with ready-made integration scenarios so that the store can be seamlessly integrated into the B2B company's IT system landscape. Companies that do not want to forego the advantages of an OSS store, but also value aspects such as manufacturer support and warranty, can convert their open source system into a commercial version with the leading providers.

Agile project implementation

The development and operation of a B2B online store requires a completely different project approach than in B2C. Business models, customer groups, the IT landscape and the internal processes of the specialist departments have often grown over many years before entering the world of online sales. As the requirements for the solution change over time, it makes sense to gradually develop individual functionalities for quote generation, configurators, checkout, approval and budget procedures and invoicing. Pilot projects such as the introduction or relaunch of a B2B web store are therefore best implemented using agile methods and modular software.

The customer takes center stage

With the right technology and approach, B2B companies are ideally equipped to optimally meet their customers' requirements. Established B2C functions and services - including search and filter functions, a product availability display, watch lists, flexible delivery services, cross-selling, up-selling and feedback options - enable online retailers to increase the attractiveness of their offering. Speaking of service: thanks to integratable data interfaces, modern e-commerce solutions can be expanded into a comprehensive customer loyalty platform. Customers can then view receipts and invoices - even for products that they have not purchased in the store - find the right contact person for a specific request and obtain detailed information about products, services and support. All relevant information is bundled in a central location. Store operators also benefit from a high level of integration capability in fulfillment. They can connect B2B marketplaces, partners and suppliers to their platform and thus open up additional sales channels. It is important that the B2B store offers an appealing and user-friendly shopping environment. It should also be ensured that consistent content is available at all relevant touchpoints.

Automation is indispensable

Last but not least, e-commerce platforms support automated processes. Based on defined approval workflows, simple ordering options for consumables and functions for fast order and fast checkout within a fixed credit limit, B2B retailers can increase their efficiency and reduce their costs at the same time. AI-based functionalities go one step further. Intelligent systems ensure that processes run smoothly and are optimally tailored to the customer. Artificial intelligence is particularly useful when it comes to categorizing products and providing personalized content. By analyzing historical data, such as the customer history stored in the CRM system, it can predict future events, i.e. which products and product categories a particular customer is likely to be interested in. This forms the basis for the automatic display of customer-specific content, personalized product recommendations and individual offers. In this way, store operators improve the customer experience of their discerning customers - which has a direct positive impact on customer satisfaction and sales. With a B2B store, online retailers can meet the increasing demands of business customers and stand out from the competition. It therefore forms the foundation for the successful digital transformation of existing B2B sales processes.