Business to business ecommerce has grown rapidly in recent years with no slowdown in sight. In fact, analysts project a 16% compound annual growth rate from 2020 to 2028. And it’s not just researchers reporting tailwinds, as nearly all B2B buyers claim they’ll complete end-to-end, digital self-serve transactions. Business buyers have evolved beyond relying solely on traditional methods like trade shows and catalogs. Digital transformation is a strategic approach for B2B businesses to improve their online presence and customer experience. Growth trends and buyer surveys alike paint a picture of boom-times for B2B ecommerce, and you can better understand the entire landscape by reviewing this comprehensive guide.
While most B2B sales still transpire “offline” there’s no question the shift has begun. Global research firm Forrester projects that over the next five years almost 60% of all purchases will be made online. In this post, we’ll more closely examine some of the trends that made waves in 2024.
B2B eCommerce Trends 2023: Digital Commerce Evolution
The digital commerce landscape is rapidly evolving, and B2B businesses must adapt to stay competitive. With the rise of digital channels, B2B buyers expect a seamless and personalized experience across all touchpoints. In fact, 83% of B2B buyers prefer ordering or paying through digital commerce channels. To meet these expectations, businesses must invest in a robust ecommerce strategy that integrates digital tools and provides a unified customer experience. This means leveraging advanced analytics, AI-driven insights, and omnichannel capabilities to create a cohesive and engaging journey for the customer. By embracing a digital transformation strategy, businesses can not only meet but exceed customer expectations, driving loyalty and long-term success.
Definition of Digital Commerce
Digital commerce, also known as e-commerce, refers to the buying and selling of goods and services using digital channels such as the internet, mobile devices, and social media. It encompasses a wide range of activities, including online transactions, digital marketing, and customer relationship management. By leveraging digital commerce solutions, businesses can facilitate seamless online transactions, manage customer interactions, and optimize their operations. Digital commerce is not just about having an online store; it’s about creating an integrated digital ecosystem that enhances the overall customer experience and drives business growth.
Importance of Digital Commerce in Modern Business
In today’s fast-paced business environment, digital commerce has become indispensable. It enables companies to reach a global audience, breaking down geographical barriers and expanding their market reach. With digital commerce, businesses can operate around the clock, providing customers with the convenience of shopping anytime, anywhere. This 24/7 availability not only boosts sales but also enhances customer engagement and satisfaction. Moreover, digital commerce offers valuable data and insights that can inform marketing strategies, optimize operations, and improve competitiveness. By embracing digital commerce trends, businesses can stay ahead of the curve and meet the ever-evolving demands of their customers.
Brief History of Digital Commerce Evolution
The evolution of digital commerce has been nothing short of transformative. It all began in the early 1990s when the internet emerged as a platform for online transactions. The launch of the first e-commerce websites marked the beginning of a new era in retail. The early 2000s saw the rise of online marketplaces like Amazon and eBay, which revolutionized the way people shopped online. These platforms made it easier for businesses to reach a wider audience and for consumers to find a variety of products in one place. The widespread adoption of mobile devices and social media in the 2010s further accelerated the growth of digital commerce. Businesses could now engage with customers through multiple channels and touchpoints, creating a more integrated and personalized shopping experience. Today, the digital commerce landscape continues to evolve, driven by advancements in technology and changing consumer behaviors.
B2B ecommerce is thriving and expected to continue growing
B2B ecommerce has emerged as a must-have for businesses, with the market growing rapidly. Online sales on B2B ecommerce sites, log-in portals, and marketplaces increased 17.8% to $1.63 trillion in 2021. The North American B2B ecommerce market is expected to surpass $4,600 billion by 2025. About 65% of B2B companies across industries are fully transacting online in 2022. Ecommerce drives revenue, with about 18% of B2Bs’ revenue coming directly from ecommerce.
Digital channels are becoming increasingly important for B2B businesses
Digital channels are becoming increasingly important for B2B businesses, with 83% of business buyers preferring ordering or paying through digital commerce channels. B2B buyers expect quick, effortless buying, seamless shopping options, and self-driven convenience. The use of digital tools, such as digital commerce platforms and mobile apps, is on the rise, with over 70% of B2B health and beauty businesses investing in mobile apps in 2022.
Existing customers are driving growth in B2B ecommerce
Existing customers are driving growth in B2B ecommerce, with 90% of B2B buyers reporting that they would turn to a competitor if a supplier’s digital channel couldn’t keep up with their needs. B2B businesses need to prioritize customer service teams and focus on meeting customer expectations as part of their digital commerce strategy to remain competitive. In-person sales are still important, but digital channels
Trend 1: Migration to Shopify Plus B2B
Shopify being a consumer-only ecommerce platform, while perhaps true in its early years of adoption, is a pervasive myth in the industry. With a robust technical infrastructure, thriving app ecosystem and bevy of success stories, Shopify Plus has firmly established itself as the go-to platform for B2B ecommerce. Migrating to Shopify Plus represents a significant shift in the business model for many companies, allowing them to adopt new technologies and platforms to enhance their ecommerce presence. This ecommerce migration enables businesses to leverage advanced tools and features. A growing number of companies—many of which have broad catalogs or configurable products—now migrate from legacy platforms not only to reduce costs, but also increase functionality and scalability on the backbone of Shopify Plus. In fact, more than 7,000 B2B ecommerce companies sell on Shopify Plus, making it one of the most prominent options.
Trend 2: Focus on Customer Experience
Great strides have been made in improving the design and functionality of consumer ecommerce websites, but B2B portals and commerce sites are playing catch-up. Customer service teams play a crucial role in enhancing user experience through automation and better engagement as part of a comprehensive customer experience strategy. That isn’t to suggest the demand for improved user experience (UX) design isn’t there; 8 of 10 B2B buyers now expect “consumer-like” experiences when they go online. From employing UX designers to running A/B tests online to refine the experience, more attention is being made to the impact of design on a site’s performance. This especially holds true for mobile traffic, which now comprises well over half the B2B search queries (and grows each year). In fact, more than 90% of B2B decision makers say they’re likely to buy again from the same vendor if they have a superior mobile experience. One other reason mobile means money for B2B buyers: Search Engine Optimization (SEO) rankings are heavily impacted by a site’s mobile load time and usability. Why does SEO matter to companies? More than half of all online traffic comes from organic search, yet only 1% of users will actually click past the first page of results.
Trend 3: Composable Commerce Technology
Composable commerce technology is revolutionizing the way B2B businesses approach digital commerce. By breaking down monolithic systems into smaller, modular components, businesses can create a more agile and adaptable ecommerce platform. This approach enables businesses to quickly respond to changing customer expectations and stay ahead of the competition. In fact, 80% of businesses lacking a composable setup today plan to adopt one within the next two years. This shift allows for greater flexibility, enabling companies to integrate composable commerce solutions tailored to their specific needs. As a result, businesses can innovate faster, reduce time-to-market, and deliver a superior customer experience.
Trend 4: Social Proof
As business increasingly shifts online, establishing credibility and a strong reputation becomes more important. B2B ecommerce has overtaken in-person sales as a preferred sales channel due to the growth of digital transactions. According to research firm Nielsen, 7 of 10 consumers trust opinions posted online when making purchase decisions. In fact, positive product reviews and other user generated content garner 100%+ more sales and can raise prices by nearly 10%. Here are a few simple considerations when designing a social proof strategy.
Customer Reviews
As noted above, online reviews boost credibility and drive sales. Integrating reviews into an omnichannel strategy by sharing them across multiple channels can significantly enhance customer engagement. To maximize their value, include them on product pages to improve conversion rate. Also, make them easy to filter so a customer can find what they’re looking for, and be sure to respond to the negative reviews to build confidence. Finally, incorporate user generated content (UGC) so potential customers have visuals alongside the written assessment.
Expert Testimonials
Include guest posts on your blog written by experts in the industry. Expert insights not only provide direct value to your visitors, your brand will likely gain more exposure when those experts share the piece through their own networks. Expert testimonials can help create the most effective sales channel by building credibility and trust. You can also host webinars, podcasts or panels with subject matter experts to increase credibility.
Referral Program
Shopify-integrated referral programs, like those offered by Stamped or Yotpo, make it easy to implement referral incentives across multiple channels, including your website, email flows, social media content, and any other consumer touchpoints. Customize the rewards, whether they’re points or cash, based on the number of referrals or even other behaviors you want to incentivize (such as posting on social media or leaving a review). According to Extole, business to business companies with referrals have a 70% higher conversion rate, and they report a 69% faster close time on sales.
Trend 5: Generative AI (GenAI) in Personalization
Generative AI (GenAI) is transforming the way B2B businesses approach personalization. By leveraging GenAI, businesses can create highly personalized experiences that cater to individual customer needs and preferences. In fact, 90% of marketers claim that ecommerce personalization has boosted their revenue. By incorporating GenAI into their ecommerce strategy, businesses can create a more effective sales channel that drives customer loyalty and retention. GenAI can analyze vast amounts of data to predict customer behavior, recommend products, and tailor marketing messages, ensuring that each interaction is relevant and engaging. This level of personalization not only enhances the customer experience but also significantly increases conversion rates and customer lifetime value.
Trend 6: Email and SMS Strategies
Email marketing is nothing new, but it’s also not outdated! According to HubSpot, email generates $42 for every $1 spent. As if that isn’t enough, one of the biggest areas for improving results lies in list segmentation. By segmenting your lists into groups such as one-time buyers, high-dollar customers, warm contacts, etc., you can increase the relevance of your message and efficiency of your program. HubSpot also reports marketers who use segmentation in their campaigns see greater than 7x increases in revenue.
But it’s not just email marketing that has B2B marketers buzzing; SMS has entered the chat. According to Simply Texting, the use of SMS marketing services by B2B marketers increased by 200% between 2015 and 2017. Here are a few reasons why, according to Mobile Monkey:
- The response rate of marketing text messages is 45% (compared to 6% for email)
- SMS messages have an average click-through rate of greater than 30%, while email click-through-rates are less than 5%.
- When it comes to sales, 90% of leads prefer to be texted instead of called
The bottom line: smart businesses communicate with their prospects and customers the ways in which they want to be engaged. Find your customer preferences and target segmented lists with timely and relevant messages on their preferred medium!
Incorporating email and SMS strategies as part of a broader omnichannel marketing strategy allows businesses to engage with customers through multiple channels. This is crucial in today’s digital landscape where buyers use various sales channels. Companies must excel in these channels to remain competitive and enhance buying decisions.
Trend 7: Loyalty and Membership Programs to Boost Customer Lifetime Value
B2B companies are turning to membership and customer loyalty programs to help differentiate, attract new customers and retain the most valuable ones. Integrating these programs across multiple channels can significantly enhance customer engagement. A membership program is one in which customers pay a fee (often annual) in order to unlock access to a company’s goods or services, special perks or pricing, content, premium customer support and any number of benefits outlined by the program. The value proposition should be clear: your customers (or rather members) pay an upfront fee with the promise of recouping it (and more) by taking advantage of those benefits. Executed properly, membership programs can be a win-win. You can read all about those outcomes in this membership deep dive
In a traditional consumer loyalty program, wherein customers receive points or rewards for things like repeat purchasing, referrals or sharing on social media (as noted in the previous section). While similar in intent, the customer in those situations does not have a “membership” but instead gets rewards by taking specific actions detailed by the brand. Let’s take a look at some meaningful loyalty trends:
- Nearly 70% of B2B leaders believe clients are less loyal than in the past (Bain)
- 8 in 10 B2B marketers are shifting budgets to focus on customers (Leapfrog)
- More than 40% of mid-size B2B companies list customer satisfaction as a key objective (Ko Marketing)
It’s well understood that acquiring new customers is expensive (compared to retaining existing ones), so B2B companies are making retention and loyalty a focal point for healthier growth.
Trend 8: Fast Checkout
Friction at the point of conversion is a big problem in ecommerce. In fact, roughly 70% of carts are abandoned! Nearly 20% of US shoppers claim cart abandonment was due to long or complicated checkout processes. Customer service teams can help streamline the checkout process and reduce cart abandonment by engaging better with customers and focusing on selling rather than repetitive tasks. Implementing a streamlined checkout process, such as one-step or one-click checkout (particularly for repeat customers), minimizes the effort to purchase, and Shopify Checkout is making this possible for ecommerce businesses.
Clear, well-organized information such as payment and shipping terms also impact conversion rate. Designate terms and conditions such as due dates or even payment types accepted (i.e. credit card, ACH) depending on the product or group. You can even integrate native financing tools such as monthly installments or “same as cash” purchases. And digital payments are continuing to increase; credit cards (94%) are the most commonly used payment type for the ecommerce, though others are still in play online, with more than half accepting checks, terms and purchase orders.
Trend 9: Payment Flexibility and Fulfillment
Payment flexibility and fulfillment are critical components of a successful B2B ecommerce strategy. With the rise of digital commerce, customers expect a seamless and efficient payment process that meets their individual needs. In fact, 80% of B2B buyers prefer ordering or paying through digital commerce channels. By offering multiple payment options and streamlining fulfillment processes, businesses can improve customer satisfaction and drive repeat business. This includes integrating various payment methods such as credit cards, ACH, and digital wallets, as well as providing flexible payment options and flexible financing options. Additionally, optimizing fulfillment processes to ensure timely and accurate delivery can significantly enhance the overall customer experience, making it easier for businesses to retain existing customers and attract new ones.
Trend 10: Omnichannel Sales through Digital Channels
B2B brands often need to simultaneously grow different sales channels and teams; wholesale, retail, direct and international distributors may all need support from the website. An omnichannel sales strategy involves engaging customers through multiple channels, which is crucial for enhancing buying decisions. According to Mangneto, 3 in 4 B2B buyers will purchase repeatedly from the same supplier if it has excellent omnichannel capabilities. But when different customer types have varying requirements for pricing, quantities, payment, shipping and delivery, the ecommerce experience must be flexible. In fact, Accenture reports that 90% of B2B leaders believe customer experience is vital to their companies’ strategic priorities.
For starters, create user journeys based on type of account and ensure your customers have complete and accurate information on their way to purchase. Additionally, create customer-specific portals so your buyers can view previous orders, access personalized pricing, find what they need faster and pay on their accepted terms. Recognizing the opportunity, more than a third of B2B companies have already started delivering such experiences to companies!
Trend 11: Subscriptions and Auto-Replenishment
E-commerce increasingly makes dollars and sense for B2B companies. And for ones with highly repeatable orders? It’s a no-brainer. Giving customers the ability to “set it and forget it” not only saves them time and money, it creates consistent, forecastable sales for an organization. Subscriptions and auto-replenishment can help create the most effective sales channel by ensuring consistent and forecastable sales. According to McKinsey, in the B2B space, organizations with subscriptions must “move strategically, not conveniently,” and that “making small, intuitive moves, such as adding a few clever features or apps to their website” won’t work. This means setting up a portal with customer-specific pricing and terms, as well as the ability to customize the order quantities and frequencies. When a business can set up auto-replenishment for its customers, the result can be increased order frequency and average order value.
Trend 12: B2B Marketplaces and Partnerships
B2B marketplaces and partnerships are becoming increasingly important for businesses looking to expand their reach and remain competitive. By engaging in B2B partnerships and leveraging marketplaces, companies can tap into new customer segments and drive revenue growth. In fact, 40% of top-performing companies capitalize on third-party marketplaces for sales. By investing in B2B marketplaces and partnerships, businesses can create a more effective sales channel that drives customer lifetime value and loyalty. These collaborations allow businesses to offer a wider range of products and services, access new markets, and benefit from shared marketing efforts. Ultimately, this strategy not only enhances the customer experience but also provides a scalable and sustainable growth model for B2B companies.
Trend 13: Customer Service
The days of punching 0 into a phone in hopes of exchanging the automated menu for a live person are over. Customer service teams now play a crucial role in providing around-the-clock service through various digital channels as part of an effective customer service strategy. Why? Because ecommerce businesses lose an estimated $75 billion annually due to poor customer experience.
For starters, help customers help themselves. Keep in mind 90% of customers would use an online knowledge base, if suited to their needs. Websites should feature FAQs, guides and articles, even forums connecting customers to other customers. And make sure it’s mobile friendly, too, so the customer doesn’t become even more frustrated! On a 5-pt scale, decision makers ranked the importance of tools for self-service a 4.4.
Many customers prefer communicating with a live person, and those real human beings can now manage several digital channels of communication simultaneously: email, contact forms, social media messages, live chat or even SMS. Personalization can be key, as 9 in 10 B2B buyers seek personalized pricing and recommendations, and more than half would pay more to get those offers.
Trend 14: Self-Service and Personalization
Self-service buying is on the rise in B2B ecommerce
The Role of Automation in Streamlining Digital Commerce Processes
Automation is a game-changer in the realm of digital commerce. By automating routine tasks, businesses can streamline their operations, reduce costs, and enhance customer satisfaction. Technologies such as artificial intelligence (AI), machine learning, and automation tools like robotic process automation (RPA) are at the forefront of this transformation. For instance, AI can be used to automate customer service through chatbots, providing instant responses to customer inquiries. Machine learning algorithms can optimize inventory management by predicting demand and adjusting stock levels accordingly. RPA can handle repetitive tasks such as order processing and invoicing, freeing up human resources for more strategic activities. By integrating automation into their digital commerce strategy, businesses can improve efficiency, reduce errors, and deliver a superior customer experience.
Examples of Dynamic Pricing Strategies in Digital Commerce
Dynamic pricing is a powerful strategy in digital commerce that allows businesses to adjust prices in real-time based on various factors such as market demand, competition, and customer behavior. For example, an online retailer might increase prices during peak shopping periods to maximize revenue and lower them during off-peak times to attract more customers. Similarly, a hotel chain could use dynamic pricing to adjust room rates based on occupancy levels, ensuring optimal revenue throughout the year. Another example is ride-sharing services like Uber, which use dynamic pricing to adjust fares based on demand and supply conditions. By implementing dynamic pricing models, businesses can optimize their pricing strategies, respond swiftly to market changes, and enhance their profitability.
Trend 15: Sustainability and Social Responsibility
Embracing sustainable practices in B2B eCommerce
As consumers become increasingly environmentally conscious, B2B businesses are also expected to prioritize sustainability and social responsibility. In fact, 45% of customers express a preference for brands with eco-friendly or environmentally responsible ethics. To remain competitive, B2B eCommerce companies must adopt sustainable practices throughout their operations, from supply chain management to packaging and shipping.
A significant 71% of B2B buyers consider a supplier’s sustainability reputation when making purchasing decisions. Companies that prioritize sustainability are 2.5 times more likely to experience revenue growth. Moreover, sustainable practices can lead to cost savings, with companies reducing energy consumption and waste.
To incorporate sustainability into their eCommerce strategy, B2B businesses can:
- Implement environmentally friendly packaging options
- Invest in renewable energy sources
- Develop sustainable supply chain practices
- Offer eco-friendly product options
- Measure and report on sustainability metrics
By embracing sustainability and social responsibility, B2B eCommerce companies can not only reduce their environmental impact but also improve their reputation, attract environmentally conscious customers, and drive long-term growth. This approach not only aligns with evolving customer expectations but also positions businesses as leaders in the digital commerce landscape.
Trend 16: Data-Driven Decision Making
Leveraging data for strategic insights and growth
In today’s digital commerce landscape, data is a valuable asset for B2B eCommerce companies. By leveraging data-driven insights, businesses can make informed decisions, optimize operations, and drive growth. In fact, companies that use data-driven decision making are 23 times more likely to acquire customers and 19 times more likely to be profitable.
However, 63% of B2B decision-makers identify data cleanliness as the biggest impediment to robust eCommerce growth. Despite this challenge, companies that effectively use data analytics are 2.5 times more likely to experience revenue growth. Data-driven decision making can also lead to improved customer service, enabling businesses to anticipate and meet customer needs more effectively.
To leverage data for strategic insights and growth, B2B eCommerce companies can:
- Invest in data analytics tools and platforms
- Develop a data-driven eCommerce strategy
- Measure and track key performance indicators (KPIs)
- Use data to inform product development and inventory management
- Analyze customer behavior and preferences to improve the customer experience
By embracing data-driven decision making, B2B eCommerce companies can gain a competitive edge, drive growth, and remain competitive in the ever-evolving digital commerce landscape. This strategic approach ensures that businesses are not only meeting but exceeding customer expectations, thereby enhancing customer lifetime value and fostering long-term success.
Closing Thoughts
Taking advantage of new marketing and technology solutions shouldn’t feel intimidating. Work with a certified Shopify Plus B2B Partner that can not only identify the right tools and integrations, but also implement them in your B2B ecommerce store. Also ensure your ecommerce analytics are properly tracking so you can determine what’s working best for your brands and your customers. More than 90% of B2B buyers believe the remote and digital model will stick around for the long run, and there’s no better time to invest in your ecommerce store!