We have been covering the topic of B2B sales quite a bit recently. This aspect of your eCommerce business is growing at an extremely rapid rate. B2B sales growth in 2018 surpassed 1 trillion for the first time. Experts agree that figure will only continue to grow as 2019 progresses. In the past, distributors, wholesalers, and manufacturers would take most orders by phone or in person. However, as these figures will attest, this is no longer the case. B2B sellers are increasing their online presence and strategy, which is generating more and repeat business through eCommerce.
When B2B eCommerce sales surpassed $1 trillion last year, this marked the fastest rate yet for growth. B2B sales transactions processed through eCommerce websites, log-in portals, and online marketplaces grew 11% in 2018, reaching $1.08 trillion according to data published in the 2019 U.S. B2B eCommerce Market Report.
This analysis uses information from the U.S Commerce Department and data collected by B2BecNews. Included in this study are sales by U.S. wholesalers, distributors, retailers, and manufacturers who sell to other business customers, for example, The Home Depot and Staples.
According to a 2018 B2BecNews survey of 276 companies in the B2B space, 60.7% of manufacturers and 38.1% of wholesalers and distributors do not currently have an eCommerce site. However, of those reporting no current eCommerce site, 75% stated they planned to launch one within the next 2 years. This will most certainly translate into a big spike for new website builds.
At this point, 49.3% of total B2B sales, or $7.37 trillion, are still conducted manually by account managers and sales representatives. Another 32.5%, or $4.85 trillion, are handled through EDI (electronic data interchange). In some cases, such as with complex transactions, some B2B sales will continue to be better suited to these two channels. However, it is expected that much of the $7.37 trillion market is moving in the eCommerce direction. More and more buyers are looking for the convenience eCommerce sites offer. Sellers are viewing eCommerce sites as a way to operate more efficiently and cost-effectively. They are also hoping it will allow them to reach a larger customer base. It will be important for B2B sellers to have user-friendly and modern eCommerce sites to remain competitive.
IronPlane is a full-service agency with the expertise and resources to assist in creating a powerful and user-friendly B2B eCommerce website. Contact us today to learn more about how we can work with you to create a new (or update your current) site.