Djoni Herlambang, CTO, AEON CO. Malaysia BHD, 0
What are some of the key aspects organizations must keep in mind when transitioning from B2C to B2B segment?
For any company to have a successful transition from B2C e-Commerce to B2B, it should first change the way it handles the assortment of goods since it varies greatly in the two segments. While assortment in B2C segment mostly concerns handling goods in small quantities such as a single can, bottle or packet, B2B segment mostly involves handling goods in bulk quantities such as carton boxes. Additionally, the pricing negotiation during the procurement of goods too will be entirely different in the B2B segment due to the difference in order size. Similarly, the company will also have to realign its supply chain network and partner with vendors who are capable of supplying goods in bulk.
Furthermore, the company must re-look at its logistical options and opt for those who possess the capability to transport larger quantity of goods. Also, the company must make the necessary changes in its e-Commerce model to be able to facilitate B2B transactions, especially in terms of making payments for the purchases. Most importantly, it should at least have a decent base of B2B customers on which it builds upon later prior to migrating into the B2B segment. Overall, it is extremely crucial for the company to re-strategize in terms of all these aspects to successfully foray into the B2B vertical.
Throw some light on the most common challenges business face while expanding into the B2B sector.
When entering into the B2B segment, most companies tend to utilize the same team and resources that they used for B2C market. Since most of those team members may not possess the necessary knowledge or expertise to operate in the B2B market, the company might face inefficiencies in their processes or even incur losses. Thus, companies must do a thorough market research to understand what the customer requirements are and have a strong team of B2B professionals who have a clear understanding of various intricacies involved in the B2B space. Additionally, since
B2B majorly deals with goods in bulk, companies must have an effective strategy in place comprising of numerous essential aspects such as buying/selling of goods and inventory management. This will help them to maintain their stocks as per market demand and not incur losses by overstocking the goods.
Suggest a few strategies for organizations to effectively integrate into existing marketplaces while maintaining a competitive edge.
Integrating everything into the marketplace is more like a service extension because you already have B2C serving end customers and B2D serving big organizations. Also, since most of the customers may not know about your website or brand, you must develop a very strong USP for yourself to make a mark in the customers' minds and attract them towards your marketplace. Most people visit a marketplace because they want to get all their desired items under a single roof. Since most of the customers today expect a seamless experience even when shopping offline, marketplaces must be equipped with staff who can personally assist each customer and offer a assistance wherever necessary - something which is not possible through any e-Commerce platforms.
Briefly explain the impact of transition to B2B and marketplaces on brand image and pricing strategies.
When foraying into the B2B e-Commerce sector, most of the companies do so with a different brand name so that they do not dilute the existing B2C brand image. Similar to the difference in assortment, the pricing will also vary significantly due to varying sizes of goods among B2B, B2C and marketplaces. Additionally, marketplaces offering personal assistance to shoppers also have an impact on the pricing when compared to B2B or B2C e-Commerce.
What are some of the emerging trends that are expected to reshape the B2B e-Commerce and marketplace in the coming years?
Today, B2B e-Commerce is a highly competitive market, and this is only going to intensify further in the coming days. Thus, going forward, there will an increased service integration happening in the market. Also, companies will focus more on offering a seamless buying experience to their customers - right from ordering the products to getting them delivered at their doorstep. Additionally, more companies will start selling their products directly into marketplaces. Further, to cut-down on deliver charges, both customers and the companies are expected to rely heavily on drop-shipper services.
Suggest a few strategies for organizations to effectively integrate into existing marketplaces while maintaining a competitive edge.
Integrating everything into the marketplace is more like a service extension because you already have B2C serving end customers and B2D serving big organizations. Also, since most of the customers may not know about your website or brand, you must develop a very strong USP for yourself to make a mark in the customers' minds and attract them towards your marketplace. Most people visit a marketplace because they want to get all their desired items under a single roof. Since most of the customers today expect a seamless experience even when shopping offline, marketplaces must be equipped with staff who can personally assist each customer and offer a assistance wherever necessary - something which is not possible through any e-Commerce platforms.
Since B2B majorly deals with goods in bulk, companies must have an effective strategy in place comprising of numerous essential aspects such as buying/selling of goods and inventory management.
Briefly explain the impact of transition to B2B and marketplaces on brand image and pricing strategies.
When foraying into the B2B e-Commerce sector, most of the companies do so with a different brand name so that they do not dilute the existing B2C brand image. Similar to the difference in assortment, the pricing will also vary significantly due to varying sizes of goods among B2B, B2C and marketplaces. Additionally, marketplaces offering personal assistance to shoppers also have an impact on the pricing when compared to B2B or B2C e-Commerce.
What are some of the emerging trends that are expected to reshape the B2B e-Commerce and marketplace in the coming years?
Today, B2B e-Commerce is a highly competitive market, and this is only going to intensify further in the coming days. Thus, going forward, there will an increased service integration happening in the market. Also, companies will focus more on offering a seamless buying experience to their customers - right from ordering the products to getting them delivered at their doorstep. Additionally, more companies will start selling their products directly into marketplaces. Further, to cut-down on deliver charges, both customers and the companies are expected to rely heavily on drop-shipper services.