How Magento Can Be Successful In The B2B eCommerce Domain
Today, a large number of eCommerce agencies as well as platforms center their business strategy around the B2C market. However, they fail to judge or gauge the popularity of the B2B market. As the online B2B market is still a sleeping giant in many countries around the world, it becomes essential to understand the role that Magento and websites powered by the Magento Platform will play in such a scenario.
Today, many companies are shifting from legacy B2B models to a different form of B2B – online B2B wherein the marketplace shrinks and becomes more welcoming to online customers from all over the globe. Since the B2B market includes a large number of transactions, understanding the B2B market is generally very complex. This complexity is further complicated by the number of people involved in the transactions. Today, many companies are going online and that too through their private B2B platforms.
These private B2B platforms are capable of offering various online applications in a sophisticated manner that provide access to a variety of B2B process components such as quotations, purchases, change management, contract negotiations,payments, and a host of others. B2B catalogs are usually very large including millions of items from hundreds of suppliers. Online B2B is taken up with intentions such as streamlining huge volume businesses and reducing online costs. Therefore, if correctly implemented, B2B has the potential to revolutionize industry.
The Role of Magento in B2B
In 2014, Magento along with Oracle and IBM “…were the top three providers for the top 500 internet retailers in the USA as well as Canada.” On the IT top 50 list, Magento has 34 merchants, thereby doubling the number of merchants from the 2013 list. This only means that B2C markets have endorsed B2C merchants. Now, it is up to Magento’s customers who need to testify the value of Magento for the B2B markets. This means that if Magento is a completed product for B2B, then Magento will surely a market leader in this segment.
Especially in the B2B markets in the USA, eCommerce B2B is getting bigger and bigger. According to some recent facts available online, “B2B online sales are expected to reach around $ 6.7 trillion by 2020”. This also means that “48% of the B2B customers will place 50% or more of their online orders within three years.”Therefore, the opportunities for B2B eCommerce are staring in the face of Magento.
It should be understood here that B2B merchants come to a site with an objective to do business, rather that having purchasing needs as is in the case of B2C. Therefore, the difference here is that there are different buyers or users in the B2B process, as one user places the order, yet another user approves the purchase.
The Question – Whether Magento is ready for the B2B marketplace?
Therefore, because of the various complexities involved, most organizations are seeking a simpler way for B2B. The answer is B2B eCommerce, yet do we have the right platform in the form of Magento? Magento already has a winning platform in the form of Magento Community and Magento Enterprise.
Also part of the package are various eBay enterprise product that provide retail as well as omni-channel solutions. What is now required is a push up to the next level to encompass Enterprise B2B clients. Magento’s clients will be tech savvy enterprises, which have great expectations in terms of performance, customer service and ROI.
And the Answer is…
Today’s B2B customers want more and those B2B websites that cannot deliver will face their demise very soon. B2B entails ordering multiple if not tens or hundreds of products. Today’s companies demand speed and unlike the B2C market, the B2B market demands ruthless efficiency. Quick convenient ordering is the order of the day, and those B2B eCommerce websites that allow rapid searches and quick product searches will be successful eventually. Also, websites with auto-suggest options and quick payment options will beat others in the B2B race. It remains to be seen whether a full range of enterprise Magento Extensions will be the answer to the B2B conundrum. Magento will need to meet top expectations in the market to remain the top gun eCommerce platform that it is today.