Posted 12.01.2022
The B2B ecommerce industry, like virtually every other, has faced some serious challenges across 2020 and 2021. As entire sectors are intermittently shut down and supply chains face disruption after disruption, the COVID-19 pandemic remains the biggest driver of change going into 2022. Although beleaguered, the B2B ecommerce market remains a growth sector. In 2020, the market was valued at £4.8 trillion, and is expected to see a compound annual growth rate (CAGR) of 18.7% between 2021 to 2028.
Nonetheless, the B2B ecommerce market, which has long proven resistant to digitisation, is evolving rapidly. Traditional sales reps and conventional marketing methods are slowly giving way to ecommerce platforms and digital marketing. This is due partly to a shifting buyer demographic, but also the need to be more agile and cater to changing customer expectations and needs. Indeed, it’s estimated that 75% of B2B procurement spending will take place in the digital marketplace by 2025.
As they brace themselves for the challenges of 2022, B2B ecommerce merchants must be increasingly aware of changing ecommerce trends. Here we’ll look at the biggest ecommerce industry trends of 2022 and how you can stay ahead of the curve by embracing them, and tailoring your strategy accordingly.
In order to stay agile in a rapidly-shifting market, it’s important to understand why the pandemic has hastened an already growing shift in the B2B sales market towards ecommerce.
When the pandemic first hit, there was catastrophic damage to supply chains and buyers were no longer able to purchase the items they needed from sales reps and brick and mortar stores. As such, they turned their attention to the online realm.
Ecommerce provided availability to products that were essential to buyers’ business operations when they needed them most. What’s more, buyers were primed for satisfactory digital customer experiences that would keep them coming back. A strong online presence was therefore vital.
Naturally, the B2B ecommerce market responded to the surge in demand, with companies tailoring their offerings to provide a better value proposition for their new and existing customers. Companies started demanding more from the ecommerce platforms they used with improved functionalities like auto-reorder and inventory tracking, as well as improved user experience (UX).
Although the pandemic has accelerated this trend, however, demographic changes among buyers mean that the shift towards digital channels and ecommerce platforms was always likely to come sooner rather than later.
When it comes to ascertaining the future of B2B ecommerce, retailers need to consider the growing millennial presence within the workforce. It’s estimated that by 2025, the millennial generation will make up 75% of the global workforce. These digital natives have grown up using ecommerce in their personal and professional endeavours. They also have very high standards and are aware of how many choices they have within the market.
As such, in 2022 we can expect B2B ecommerce retailers to place greater focus on delivering a worthy and convenient user experience that adds value to the customer. While retailers will no doubt be revisiting their price points (2022 is likely to be a lean year for many), most of their attention will be on how to create a seamless and effortless customer experience.
After all, it’s estimated that only 20% of a B2B purchasing decision is made on the basis of cost and 80% is made as a result of the user experience. Transparency, flexibility and effortless transactions are far more important to time-poor millennial buyers than cost.
Online marketplaces will continue to dominate the B2B ecommerce sector in 2022. Of course, this means Amazon. But it also means other online marketplaces like eBay and even Etsy. Ideally, you want to drive traffic to your website, but the simple truth is that 80% of B2B sales are expected to be made through these ubiquitous online marketplaces over the next 5 years.
Retailers in the B2B sector can either bemoan this and miss out on sales or embrace the online marketplace. These marketplaces, after all, known and trusted brands with interfaces that buyers are already familiar with. They’re a great place to reach new markets and attract an engaged and motivated new audience. With the help of the right software, you can also coordinate your online sales across multiple platforms for seamless order and inventory management.
B2B ecommerce retailers know that they need to create an easier and more satisfying user experience in 2022. But what specifically might that look like?
While every retailer will have their own ideas and priorities, a growing trend is to adopt B2C-like strategies to provide a buying experience that mirrors buyers’ favourite user experiences in their personal lives.
If you’re unsure how best to do this, a few worthwhile places to start include:
Speaking of mobile commerce, it’s worth taking a moment to consider the growing importance of mobile use in the B2B sector.
Another way in which the pandemic has changed the face of B2B ecommerce is by changing the face of the workplace as we know it. Throughout 2020, operations of all shapes and sizes were relocated from the office to the home. Working hours and general operations became more flexible. Mobile devices were no longer things that employees left in their desks at the start of the working day. Instead, they became a crucial part of managing, coordinating and even facilitating operations.
Many B2B retailers may think of mobile commerce as better suited to the B2C market. But the truth is that mobile is here to stay. As the Omicron variant surges through the country, we can expect remote and hybrid working to become part of the new normal for many business buyers. And since they’re no longer leaving their mobiles in their desk drawers, B2B buyers will likely instinctively reach for them when making or researching a purchase.
Around 70% of B2B queries are made on smartphones, and that figure is only expected to grow. Moreover, leading B2B organisations estimate that mobile drives or influences around 40% of their revenue on average.
It’s estimated that 75% of B2B purchases will be made on a mobile device in 2022. So, don’t be left playing catch-up while your competitors get a head start. Make 2022 the year you make your business more mobile-friendly. This means at the very least investing in responsive website design, or better yet providing your B2B customers with an app to facilitate faster, easier purchases.
When it comes to mobile apps, don’t make the mistake of limiting yourself to the app store. Granted, there was a time when a presence on the Apple, Google or Android store was a badge of honour among online retailers. Now, however, a growing number of retailers favour progressive web apps over downloadables. A trend that we can certainly expect to continue into 2022.
Progressive web apps (PWAs) offer your B2B customers a more frictionless user experience than dedicated mobile apps, with increasingly robust offline capabilities.
Love them or hate them, ecommerce giants like Amazon have set an extremely high bar when it comes to order fulfilment. In their B2B purchases, as well as in their B2C purchases, buyers expect rapid fulfilment. Most have come to expect next day or even same-day shipping and next day delivery where logistically possible.
Again, a growing proportion of the B2B buyer demographic is the millennial market which has been using merchants like Amazon for as long as they have been online. And if your order fulfilment doesn’t meet their expectations, you can expect them to look elsewhere.
Of course, not every business has the logistical capability to meet these expectations. Fortunately, they can rely on order management software to simplify their supply chains and manage orders across different platforms. Alternatively, if your business needs a little extra support, you can entrust your order fulfilment to a third party. This is a great option for businesses that are focusing on growth in 2022, as it keeps costs manageable and predictable.
When it comes to B2B commerce, it’s not just about making a sale. It’s about creating a long-lasting and mutually beneficial business relationship. Customer experience is a rapidly growing market that’s expected to reach a value of just under £11 billion by 2025. Personalisation is a key component in creating a better customer experience with 50% of B2B buyers stating that it is a key factor when choosing an online supplier. What’s more, customers spend up to 48% more when they have a more personalised buying experience. It also helps to foster customer loyalty.
AI and machine learning can be invaluable when it comes to personalisation, making product recommendations based on customer data, such as past purchases, and tailoring offers and promotions to their needs. B2B ecommerce brands can increase their value proposition and enhance personalisation with dynamic pricing. This is where retailers offer pricing that’s specific to each customer. So you can reward high-value customers with more advantageous rates, increasing your value proposition while potentially driving a greater volume of sales.
B2B and B2C retailers alike are all looking for ways to make the customer journey more frictionless. One of the most prominent ways in which they’ll be doing this in 2022 is by offering greater flexibility in terms of payment methods.
Having to repeatedly enter credit or debit card information is not conducive to a frictionless customer experience, nor is an inability to use your preferred payment method. An investment in personalisation should also mean that customers are free to use their preferred payment methods including e-wallets like Apple, Android and Google Pay. These enable users to make secure purchases without having to input their card data over and over again. That said, cheques and purchase orders are also still important for B2B retailers, as are lines of credit. If you want to remove barriers to sales in 2022, the payment methods you accept would be a great place to start.
Now that you know the trends that will drive B2B ecommerce in 2022, you need to ask yourself one question. Does your ecommerce platform provide the capabilities that you’ll need to stay ahead of the curve and strengthen customer relationships? Whether you rely exclusively on your ecommerce platform or use it alongside your presence on existing marketplaces, you should expect more from your platform in 2022. More customisation, more data with better analytics, more personalisation, more budget controls and more integration with your existing IT infrastructure.
We certainly don’t expect you to jump on a trend for the sake of keeping up with the proverbial Joneses. Nonetheless, a new year provides a new opportunity to revisit your existing infrastructure and ensure that it is equipped to deal with the challenges and opportunities that the coming year will present.
Evolve Trader is a B2B ecommerce platform built using progressive web app (PWA) technology, that integrates seamlessly with your existing systems. Get set up for business success today, and request a demo.
