Business-to-Business Ecommerce
A Home Business Article Contributed by Alyssa Yerga
Businesses As Ecommerce Customers
Ecommerce is a great way for a small business to start off big. Customers in Florida, California, Alaska, Italy, South Africa, and Ireland are only a click away. Ecommerce can put your business in a more competitive position at a fraction of the cost of a storefront. And let's face it, ecommerce is also more convenient than dealing with customers face to face.
However, if you're small business deals with a very specific item or service, for instance extra sticky packing tape, perhaps you should consider targeting other businesses rather than individuals as ecommerce customers. Though you may be cutting out potential dollars, the trouble and frustration you save yourself may be worth it.
Businesses are Easier Ecommerce Customers
Individuals who spend their own money approach transactions differently than businesses.
When you do business with average everyday people who aren't familiar with the details of your product you may have a difficult time getting them to understand why you do what you do, why it takes the time it does, and why the cost is what it is. That doesn't mean you can't or shouldn't take the time to explain to them what you do, it's just that the ecommerce route may make it more difficult to get your point across. Individuals want to deal with other people. They want to see your facial expressions and hear your voice. Ecommerce simply doesn't allow for that.
Because businesses hire qualified individuals (for the most part) to handle certain issues, like sending out packages, you'll know that you are dealing with someone who has the know-how and experience to understand the intricacies of your product. Often, they shop around looking for the best price and highest quality, so they understand and appreciate your product. This isn't written in stone, of course.
You may come across someone who is new to the position or is handed the project to complete without any training. But chances are you'll be working with people who are more than happy with the ecommerce route. They don't want to spend time on the phone anymore than you do, but they still want first-rate professional service and ecommerce delivers that.
Businesses are More Reliable Ecommerce Customers
o Businesses usually need the same products repeatedly. More and more businesses are turning toward ecommerce as an easy and dependable way to shop for needed merchandise. Once you've established a business relationship with your customer, you may walk away with a long-standing ecommerce deal. If you've met the company's needs in a satisfactory manner, they may be loyal for the sake of convenience even if you have to raise your price in the future.
Individuals may not buy from you too often, not because they don't like your product, but because they simply may not need it as much as company.
o Businesses tend to have more money (or at least budgets) for certain items, especially those they need to continue their production.
Individuals on the other hand tend to need their money for the basics like food, shelter, clothing, and transportation. Your product, especially if it's more expensive than something they can get at the store, may not make it on their list of priorities.
o Companies usually have an office or supply manager that keeps track of needed items and orders them for future use.
Individuals don't usually plan too far in advance, instead running to the store when they discover they need something. Ecommerce may simply be too inconvenient for them, depending on your product.
Business-to-business and business-to-customer ecommerce business relationships have pros and cons. Ultimately your product or service will make the decision for you.
