Integration is Key to B2B eCommerce Success
According to a recent analysis, B2B eCommerce in the United States is forecasted to reach $9 trillion this year, more than twice the B2C eCommerce space. Until recently, B2B companies have been slow to digitize due to the complexity of their payment transactions. Their hesitation to adopt integrations that can catapult their business into an electronic world revolve around two main factors – customization and complexity.
Issue #1: Customized eCommerce Platform
Every B2B business has a unique set of rules related to a purchase, and thus each customer needs a personalized experience on a B2B eCommerce platform. “Everyone wants to do eCommerce. The thing that’s slowing people down is all those complicated rules”, says Sam Bayer, Corevist Co-founder and CEO.
For example, when a business purchases goods from a manufacturer, the purchasing business wants to see the manufacturer’s contractual agreements, pricing agreements, availability, credit terms, shipping options, and much more. With such complexities, companies struggle to streamline their online customer experience and revert to picking up the phone to collect payments.
Issue #2: Complex and Slow Payments
Another main reason that eCommerce has been lagging in adoption is the complexity of B2B payments. Companies need the option to not only be invoiced but to also receive those invoices digitally and pay them online.
“One of the big trends we’re seeing is not only to present invoices on a website, but to pay those invoices selectively,” Bayer said. “That’s been a big source of friction in the market. People will get invoiced, but the payments process is a bit circuitous at times, and it has a lot of friction in it.”
According to PYMNTS.com, the process in which corporate buyers must go through slows down the overall invoice process which leads to less cash flow for the buyer and less credit for the purchasing company to buy more goods. This results in a negative outcome for parties on both ends of the transaction.
The Solution: Integration
Data integration is key to solving the problems that B2B companies face concerning digitization. When a business can integrate their accounting and ERP software within an eCommerce platform, much of the complexity can be stripped out of the payment equation.
Integrating business systems between buyers and sellers allows business rules, stored within ERP systems, to be showcased on an online storefront. Electronic billing, payment acceptance, and pay-at-checkout and invoice payment options are also possible.
Amazon Encourages Other Businesses
Recently, Amazon has moved into the B2B space with their Amazon Business site. Instead of Amazon being a disruptor in the space, Dr. Bayer believes that Amazon is encouraging other companies to go digital too.
Learn How i3 Merchant Solutions Can Integrate with Your Business Systems:
Contact us online or call 1-800-621-8931.
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