21 Key Trends in B2B E-commerce 2019
Last updated July 25, 2019.
According to Digitalcommerce360, the B2B ecommerce market broke the $1 trillion threshold for the first time ever in 2018. Take note—that’s a year earlier than Forrester originally predicted. Countless B2B ecommerce trends are driving that growth in 2019. What do these trends mean for B2B manufacturers? What can you glean from these trends to help you pick the right B2B e-commerce platform in 2019?
In this article, we cover 21 major B2B ecommerce trends for 2019.
We’ve broken down those B2B trends into 4 top-level categories (click to jump there):
I. 2019 Trends in B2B Ecommerce Strategy
It’s not enough to do B2B ecommerce just because that’s where the world is headed. Manufacturers must do their homework, interrogate sales pitches, and insist on smart rollout plans—because a B2B ecommerce business is dead in the water without strategy.
Here are the top trends we’re seeing in B2B ecommerce strategy in 2019.
1. Manufacturers are experiencing increasing pressure to define their overall ecommerce strategy.
This trend affects all manufacturers, regardless of vertical. Manufacturers can’t rely on phone/fax/email ordering any longer. As competition moves to self-service online ordering, manufacturers without ecommerce are feeling increasing pressure through decreasing sales. The degree of pressure differs depending on the market, but as a general rule, the more commoditized the manufacturer’s products, the more competitive pressure the company is experiencing to sell online.
To get a web channel up and running, manufacturers must define their strategy with a realistic survey of where their business is now and where they want to end up.
To define their ecommerce strategy, manufacturers must pose (and answer) several key questions:
- What market segments are we trying to reach with ecommerce?
- Are we going after new business, transitioning existing business online, or both?
2. Manufacturers must understand rich content and how it aligns with their business (or doesn’t).
Rich content (i.e. product images, descriptions, videos, testimonials, etc.)—all this is new ground for manufacturers. Traditionally, distributors have taken care of product presentation to the end user. But as market pressures drive manufacturers online, they must begin to present product content in the same way that distributors do. (See B2B Ecommerce Trend 4 below for more on manufacturers thinking like distributors.)
In 2019, B2B ecommerce vendors are continuing to push the importance of rich content.
But do all customers of manufacturers NEED rich content?
Interrogate this sales pitch using the customer segments defined in your ecommerce strategy. The questions should look something like this:
- We’re transitioning longtime business online. Do those users need rich content, or would they rather just order by SKU or Excel spreadsheet upload?
- We’re going after new business in the same market where we have established business. Do those users need rich content?
- We’re going after new business in a new market (perhaps expanding from B2B into B2C). Do those users need rich content?
Having answered these questions, manufacturers may need to prioritize user segments. This will have a direct impact on choosing the best platform for a permanent, scalable ecommerce rollout (see B2B Ecommerce Trend 15 below).
3. Manufacturers must define their strategic relationship to Amazon.
We’ve covered this topic in depth here-—Amazon Or Private B2B Web Shop? Just as we predicted, in 2019, the B2B ecommerce trend of Amazon pressure on manufacturers has only increased. That pressure looks a little different in every market, but it requires manufacturers to act now in defining their strategic relationship to Amazon.
Key questions manufacturers must answer for every major product line (this is just the beginning):
- Who has the most market power? Amazon as a distributor, or us as a manufacturer?
- Do we need full control of branding?
- For more commoditized products, are our major competitors’ products available on Amazon?
- If we sell on Amazon, how will those orders get posted to SAP?
The question is most likely not, “Should we sell on Amazon or launch our own branded store,” but rather, “What should we sell where, and how can we optimize each channel?”
4. Manufacturers must adopt a distributor mindset for value-add ecommerce.
This crucial trend in B2B ecommerce is only increasing in 2019. As manufacturers enter the B2B ecommerce space, they’re finding competition from distributors—both their own, and those with whom they have no relationship. The relationship with their own distributors is murky, and manufacturers must tread carefully (see this post for some advice—Manufacturers Getting Closer To The Consumer).
However, the competitive problem is unavoidable. It’s easiest to state it as a question which your customers will ask whether they realize it or not:
- Why should I spend time on this manufacturer’s ecommerce site, rather than a site that offers me every product I need to complete the job at hand?
This question illustrates the scope of the problem, too. Manufacturers don’t need to carry everything under the sun, like a distributor would; they just need to consider carrying add-on products from 3rd parties that supplement their major products.
When manufacturers grow their catalog to include consumables, spare parts, and other auxiliary products which the buyer may buy elsewhere, value increases for all parties. The manufacturer gets a greater share of the revenue which customers are spending on the project, and the customer saves time because they can buy everything they need for the project in one place. It’s a win-win.
For more, see these posts on our blog:
- Manufacturers Must Sell 3rd Party Products—Distribution is a new game for manufacturers, but no manufacturer can afford to dismiss the idea out of hand. Why? Because it’s a key way of putting the customer first.
- Think Like A Distributor, Act Like A Manufacturer—Obviously, you can’t abandon the emphases that have made your company successful as a manufacturer. Rather, you need to add new skills and emphases to your existing abilities as a company.
5. Manufacturers must build a plan that gives them a quick ecommerce win now, plus permanence and scalability.
There is certainly a place for the standalone proof-of-concept in B2B ecommerce. However, we expect the proof-of-concept trend to diminish further in 2019 as more and more manufacturers get a handle on what’s possible in B2B ecommerce. When more stakeholders understand the value which B2B ecommerce brings, there’s less to prove, and manufacturers are free to pursue a permanent, scalable solution right out of the gate.
We’ll cover this in more detail in B2B Ecommerce Trend 15—Scalable Platforms.
6. Manufacturers are coordinating the launch of new product line + new web channel
Increasingly, manufacturers are approaching us with a novel approach to B2B ecommerce: they’re planning to launch a new product line through a new web channel. This is a great strategy. Internally, this move forces coordination and alignment throughout the organization:
- This approach builds synergy as all departments must pull together to meet objectives in time for launch.
- B2B ecommerce offers the ideal touchpoint for all marketing efforts.
- B2B ecommerce analytics offer insight during and after launch, both to analyze the success of the new product line and to gather lessons learned for the next iteration of the product.
7. Manufacturers are adapting B2B ecommerce to the complexity of supply chain relationships in 2019
For global manufacturers using 3PLs (3rd party logistics providers) in their fulfillment process, ecommerce may feel like the impossible dream. But here’s a trend we’re seeing in 2019: Manufacturers are extending ecommerce access to the employees of their 3PL.
This is a revolutionary trend. It allows 3rd party warehouse workers to interact with the commerce data they need to do their jobs. (Note: real-time ERP integration is especially critical in this case, so 3PL employees can update orders in the ERP in real time when they modify them or ship them out.)
8. Manufacturers are adapting B2B ecommerce to the specific needs of their distributors
To make ecommerce work for their distributors to place orders, manufacturers are finding they need uniquely tailored solutions. One example of this is the emergent trend of manufacturers offering real-time shipment weight calculations in the B2B ecommerce cart.
This innovation allows distributors to build orders that will fill up a truckload. That way, the distributors get the best value on freight charges. By removing this friction point (uncertainty about total order weight), manufacturers are becoming easier to do business with and driving their customers to buy through B2B ecommerce.
II. 2019 Trends in Organizational Transformation Driven by B2B Ecommerce
You need a lot more than a successful ecommerce rollout for B2B ecommerce to succeed. In fact, you need to achieve nothing less than organizational transformation. Wherever legacy processes and legacy thinking will hamper the shift to ecommerce, you need to engage careful, intelligent management strategies to help your internal stakeholders see the value of ecommerce and become evangelists for it.
Here are the top trends in organizational transformation which B2B ecommerce is driving in 2019.
9. Smart manufacturers are approaching ecommerce as a form of organizational transformation.
In a sense, it’s unfortunate that “B2B ecommerce” has the name it does. Why? Because the shift to ecommerce entails far more than launching a platform. For ecommerce to succeed, everything about your interaction with your customers must change. Here’s a high-level list of customer touchpoints and the internal process which the switch to ecommerce will require. If that process doesn’t exist today, or if it exists in a form that’s not conducive to ecommerce, it will require adjustment—along with cultural transformation to ensure the internal stakeholders who are responsible are on board.
- Product browsing—If the ecommerce solution will include rich content, someone has to gather and maintain that rich content across product lifecycles.
- Order placement method—If your CSRs (customer service reps) and Sales are used to directing customers to phone/fax/email, you need to get them on board with ecommerce from the start. See this post for more.
- Payment method—If you’re switching to e-payments along with ecommerce, make sure your accounting department understands everything that will change under the new payment process.
This list is just the beginning. To prepare for B2B ecommerce in 2019, you need to make a list of all internal processes which ecommerce will change, a list of the relevant stakeholders, and a plan to get each on board with ecommerce.
10. A new type of CIO/IT Director is increasingly driving B2B ecommerce.
Tim Crawford has a brilliant take on the evolution of the CIO (see his blog for more). In essence, he claims that 2019 is the year of the transformational CIO.
This is a fantastic perspective, and we it’s becoming a full-blown B2B ecommerce trend this year. CIOs and IT Directors are moving away from viewing ecommerce strictly as an IT project. Rather, they’re seeing it as a transformational project which creates a new kind of business. And while that’s daunting, it’s absolutely necessary (just see any of the other trends in this list).
11. Within conglomerates, CIOs are increasingly looking at other divisions to see what’s working and what isn’t in B2B ecommerce.
At Corevist, we’re seeing this more and more in 2019. A leader from one division of a client approaches us about launching ecommerce in another division. Even though divisions may be heavily siloed in large organizations, visibility into what works in one division can help IT leaders choose the best solution for their division. In 2019, look for more and more independent divisions to roll out the same ecommerce solution that’s been successful elsewhere within the corporation.
III. 2019 Trends in B2B Ecommerce Customer Experience
The transformation of customer experience has become a primary driver for B2B ecommerce in 2019. It’s no longer enough for organizations to launch ecommerce for increased operational efficiency (though the benefits in that area are still lucrative). Rather, organizations must put customer experience front and center in transitioning to B2B ecommerce.
Here are the top 2019 B2B ecommerce trends emerging in customer experience.
12. Manufacturers must incorporate the voice of the customer into digital transformation iterations.
This is a big step for manufacturers in 2019 as they launch B2B ecommerce. Traditionally, manufacturers haven’t had to think about the buying experience which they offer. Product specialization was a strong enough market force to drive B2B customers to manufacturers.
That has changed, and it will continue to evolve in 2019. Product will no longer be enough for manufacturers, especially in more commoditized markets. Customer experience will rise to prominence.
Since manufacturers haven’t previously considered customer experience in depth, they must adopt a new approach in 2019: incorporating the voice of the customer.
At a high level, that means starting with customer feedback before you even build a plan for digital transformation. But it also means adjusting as you go with regular check-in points with customers. At Corevist, we achieve this through a series of targeted focus groups with your internal users and your customers. In each meeting, we show a live, working demo of the software and ask a provocative question: “Why can’t we put this into production today?”
You’d be amazed at how that question gets the conversation going. In our experience, you’ll uncover all sorts of things you hadn’t thought of—and your customers will often be the biggest contributors to the discussion.
For more, see this post on our blog: What To Expect In Your First Meeting With Corevist.
13. Market pressures are driving manufacturers to prioritize a 100% self-service customer journey.
With the increasing penetration of Amazon into the lives of B2B buyers, smart manufacturers are responding with 100% self-service ordering. While that may seem like a tall order for companies that haven’t focused on customer experience in the past, it’s not as hard as it sounds. The key is to pick the right platform (see B2B Ecommerce Trend 15 below).
14. Manufacturers are increasingly transitioning to e-payments to simplify the customer journey.
100% self-service is impossible if your payments process still depends on paper checks. To put the buying journey 100% in the hands of customers, forward-thinking manufacturers are increasingly launching e-payment options in 2019.
That said, not every manufacturer will be able to get on board with this B2B ecommerce trend in 2019. As we reported in this post, paper checks still account for 59% of all payments in B2B. Customers will continue to struggle with the antiquated payment methods which many manufacturers still use. For manufacturers who do have a user-friendly e-payment process, this environment will offer them a unique competitive advantage, particularly in highly-commoditized markets where sellers must fight hard for customer loyalty.
IV. 2019 Trends in B2B Ecommerce Platform Selection
We’ve talked about strategy, organizational transformation, and customer experience. But at the end of the day, B2B ecommerce depends on a platform. Here are the trends to look for in 2019 when it comes to B2B e-commerce solutions–and which ones manufacturers are choosing.
15. Manufacturers are growing wary of platforms that don’t cut it for B2B.
With so many ecommerce vendors adapting their B2C offerings for B2B, manufacturers are finding an increasing lack of product/market fit in the ecommerce platforms they purchase. A recent study from Digitalcommerce360 highlighted the top 3 shortcomings of B2B ecommerce platforms:
- Lack of shipping information
- Lack of inventory information (or inaccurate/out-of-date inventory data)
- Not enough information for the buyer to pull the trigger
Those are serious shortcomings, and they all occur when manufacturers choose ecommerce that doesn’t integrate to their ERP system in real time. (See #19 below for more details.)
16. Manufacturers are grappling with the “suite vs. best-of-breed” question like never before.
With SAP’s 2018 unveiling of the C/4HANA suite, the pressure has mounted on manufacturers to buy one be-all, end-all suite to manage every aspect of the company digitally. And while the suite package may meet the needs of the top 1% of global players, it’s an open question which type of solution is best for “the rest of us.”
To complicate matters further, there’s a dirty little secret that suite vendors won’t tell you: suites are built through the acquisition of best-of-breed platforms. More on that here: Suite Vs. Best of Breed in B2B Ecommerce.
To help manufacturers compare the top B2B ecommerce platforms and choose the best fit, we’ve put together a platform comparison chart that’s currently ranked #1 on Google. Get your FREE chart below.
17. Manufacturers are spending more on ecommerce.
While this study from B2B Ecommerce World covers consumer brand manufacturers in particular, it’s safe to say that similar market pressures are affecting all manufacturers launching ecommerce. As the study reports, 35% of manufacturers surveyed plan to increase their ecommerce spending by more than 10%.
Also take note: that study reveals that 55% of manufacturers believe their biggest ecommerce challenge is dynamic pricing. (For more on that, see #19 below.)
18. Manufacturers are growing wary of middleware architecture for global ecommerce initiatives.
Simply put, there are only 2 ways to get ecommerce and ERP to talk to each other:
- Direct integration (only 2 systems, ERP + ecommerce, e.g. Corevist Commerce)
- Middleware solution (3 systems, ERP + middleware + ecommerce)
Increasingly, manufacturers are opting for direct integration due to its architectural simplicity, better user experience, and reduced capacity for introducing errors.
Check out this chart for details:
As you can see, direct, real-time ERP integration is the lowest-maintenance ecommerce architecture. It also happens to create the best user experience.
Let’s talk about direct real-time integration and what it means for B2B ecommerce.
19. Manufacturers are prioritizing B2B ecommerce platforms that integrate directly to their ERP in real time.
Dynamic pricing, i.e. a pricing engine that can display correct contract pricing by user and scaled pricing by product and quantity, is a top priority for manufacturers launching B2B ecommerce in 2019. This trend is so important, manufacturers are using real-time integration as a make-or-break rubric when evaluating solutions.
Why? Because rebuilding complex pricing rules in ecommerce and middleware is a waste of time and money for manufacturers who’ve already invested in that complexity in SAP.
Furthermore, pricing isn’t the only data which manufacturers need to load in B2B ecommerce in real time. Inventory levels, ATP (available to promise), EDD (estimated delivery date), SKU permissions, SKU substitution, and much more—all this constitutes a living, breathing data entity in the ERP system. Since it’s constantly evolving, and since the ERP is the system of record, manufacturers are finding they must insist on a real-time integration to the ERP or risk introducing dangerous friction into the customer experience.
Think about it: If a customer logs in and can’t get contract pricing, can’t get inventory levels, and can’t figure out what SKU to substitute for one that’s discontinued, that transaction just got a lot harder. The ecommerce platform isn’t self-service at all, because now the buyer has to call customer service to place the order. If that happens at scale, the manufacturer has failed to provide self-service ordering (see B2B Ecommerce Trend 10 above).
20. Manufacturers will increasingly prioritize scalable ecommerce platforms that allow them to add rich content when they’re ready.
Because B2B ecommerce serves large, complex organizations, it’s often an ongoing project with multiple, iterative rollouts. That’s why smart manufacturers build smart rollout plans.
What does this mean?
In a nutshell, a smart rollout plan seeks to produce ROI immediately before you go after the big fish. It allows you to launch a B2B ordering portal now, without a catalog, and transition your existing power users there—professional buyers who order by SKU and/or Excel spreadsheet. A portal like this doesn’t distract them with branding or rich content. Because it’s aligned to their needs, it allows you to move their revenue online fast. That means fast ROI—which allows you to transition to the next phase, adding a catalog to reach users who need help finding the right product.
We explain it in detail in this post: Got Content Anxiety? Overcome It With A Rollout Plan.
21. Manufacturers are replatforming off disconnected/sunsetted systems onto future-proofed, scalable, ERP-integrated systems.
When you put all the other B2B ecommerce trends together, you get this one. In 2019, manufacturers are prioritizing platforms that offer:
- Full real-time ERP integration OOTB for contract pricing, scaled pricing, inventory availability, credit standing, order history, and much more.
- Full scalability for added storefronts, product lines, and acquired businesses (without having to duplicate the ERP integration).
- The ability to add a catalog with rich content and promotions when the manufacturer is ready.
- The ability to get up and running fast to join in the $1 trillion + B2B ecommerce market.
As manufacturers prioritize this kind of new, intelligent B2B ecommerce platform, we’ll see an increasing wave of replatforming. Manufacturers will shut down their non-ERP-integrated systems and solutions which have been sunsetted by vendors. In place of these, manufacturers will launch powerful B2B ecommerce platforms that are flexible enough to meet that needs.
That’s good news for everyone, from internal stakeholders to B2B buyers.
Moving forward: FREE case study
Wondering how 2019 B2B ecommerce trends are playing out in real life? Download this case study on Mannington Mills. You’ll learn how this leading manufacturer of flooring materials started with a B2B portal, then added a catalog with rich content and saw 150% sales growth in the digital channel.
FREE Case study: 150% Sales Growth with Rich Content
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