Major challenges of B2B e-commerce business
E-commerce business is quite rewarding when you run it successfully but at the same time challenging as well. The product which you are selling might be pretty exclusive but how will you drive your clients towards it?
In B2B e-commerce business, first thing is to choose the right platform where one can expect high business prospects. B2B business is the selling process which is similar to B2C but over here the products or service are sold to other businesses who have their own consumers. Now, these business system supports the customer communication, transaction, sales, logistics etc. Whereas, in B2C the product is directly sold to consumer without any third party.
The major challenges faced by B2B e-commerce business are as follows:
- No Customer Specific Rate : In B2B the rates differ because B2B do not have own customer set, B2B sells their service or product to B2C clients, who further push the product to their own set of customers for selling it. Therefore the third party rates get additional for the customers.
- Payment : The mode of payment is different as B2B deals in bulk sales, it is definitely not the exchange process, where one pays the amount directly to the vendor. It is a partial payment or credit B2C offers B2B, where after sales the pending amount gets cleared.
- Decision Maker : B2B involves many decision makers, for example one purchase can involve two decision maker. Hence it is a little lengthy process.
- Customer : The customer never purchase directly from B2B, so it is not possible for a B2B to know their potential clientele. At this point it is not easy to carry out a competitor analysis.
B2B business is all about past relationship organization shares with the other companies. The challenges lies on, firstly there is no personal contacts, secondly, the mode of payment is very slow and thirdly number of decision makers. B2B have to put up with many hurdles for a consistent fight with the challenges on the e-commerce platform. Today in the convergence era, we can very well assume B2B do have a hunger for online trading, where they can directly reach out to their customers.