B2B e-commerce is experiencing significant growth even after the pandemic-induced spike in online shopping development. B2B online sales often involve questions and complexities not encountered by consumer e-commerce operators. Even a partial transition of existing business to online commerce requires rethinking business models, skilful communication, and determined change management for success. You can read about modern B2B e-commerce operating models in our earlier blog post.
In this blog, we explore the process of transitioning to B2B e-commerce and the various stages involved. The process is not the same for every company, but many of these themes will be encountered by those venturing into e-commerce at some point.
I. Define Business Objectives for B2B E-commerce
Clear business objectives should be set for B2B e-commerce. Simply transferring an old business model to a digital environment often works at best moderately, so it is advisable to approach online business planning as if starting with a clean slate.
The objectives set for B2B e-commerce might include:
Automating the sale of standardised products or services (= more time for salespeople to handle complex or large deliveries)
Cost-effectively testing the sale of new product or service packages
Selling additional services or value-added products to existing customers (support and maintenance services, expansions and modifications)
Enabling repeat orders for customers using a self-service channel (e.g., ordering spare parts and consumables)
II. Determine the Real Customer Need
Once the business objectives are clear, it's time to examine customer needs in more detail. Define a business-driven proposition that can be sold through the online shop, and expose it as quickly as possible to real customers and their needs.
According to Steve Blank, no plan survives first contact with a customer – the key is to have note-taking tools ready when this initial contact occurs. Good tools for understanding customer needs include service design, business design, user-centric design, and prototyping.
As customer understanding grows, the focus of B2B e-commerce and its primary requirements become clearer.
III. Model Business Profitability
Once the business goal and customer needs are understood, it is possible to start calculating the true profitability of e-commerce. Tools for this phase might include Business Model Canvas or Business Model Navigator. A competent advisor can assist in modelling the real costs and revenue streams of e-commerce.
After this stage, it should be clear what investments in e-commerce systems are possible and what their payback periods are. At the same time, examine how the online store is marketed and how customer acquisition is revamped.
At the end of the third phase, it is prudent to make a final informed decision and have the company leadership committed to it: yes, we are heading towards e-commerce, and these are the expectations we set for it.
IV. Initiate Communication and Change Management
Before designing the concept or interface of the online store, it's necessary to begin internal change management towards e-commerce. A new sales channel might seem like a great opportunity to one person and a threatening change to another’s job. Therefore, it is important to communicate internally as early as possible about at least the following:
Why is e-commerce being initiated?
What changes will occur with the introduction of e-commerce?
What does the change mean in practice for different people in their daily work?
When will the change take place?
How can people participate in making the change?
V. Design the Online Store
At this stage, the online store begins to take shape first in thought and later as a concrete interface. The design phase of the online store includes the following stages:
Designing e-commerce processes
Planning integrations of back-end systems
Technical design and specification
Technology and partner selection
User interface design
Visual design
The prototype developed at the end of the design phase is a good tool for testing the online store and gathering feedback from customers. The prototype can also be utilised in internal communication and as a tool for change management.
VI. Implement the Online Store
The implementation project with the chosen partner heavily relies on decisions made during the design phase regarding technology and partner choice.
During the implementation project, it's necessary to decide whether to develop the online store using agile methods or a more traditional waterfall model. The advantage of agile development is a more flexible approach to change needs that arise during the project. With the right partner, a traditional waterfall model’s benefit can be better predictability of budget and schedule.
VII. Launch and Continue Development
It is advisable to launch B2B e-commerce once the core functionalities chosen for the first version have been implemented and tested. The scope of the first version should be kept light, as once published, it will provide invaluable data to guide ongoing development: real, purchasing customers.
Customer understanding can be accumulated post-launch using analytics and traditional customer interviews. The task list for the continued development of e-commerce should be strongly based on business objectives as well as customer needs.
Continued development work can be roughly divided into three categories, best driven within a single development team:
Customer acquisition: marketing and advertising
Reporting: sales reports and e-commerce analytics
Design and implementation: planning and technical execution of new functionalities
IIX. E-commerce Development Team
By the continued development stage, it is necessary to form a permanent team for e-commerce development work. The team's size varies depending on the business size, and some roles might be needed as “guest stars” – the essential aspect is that all described needs are met.
Role | Description |
E-commerce Product Owner | Owner of the e-commerce entity within the client company. Has decision-making and budget authority over e-commerce development work. Manages the priority list of development work and typically reports to the business director or CEO within the organisation. |
E-commerce Marketing Lead | Responsible for e-commerce marketing, working either at the client or alternatively with a partner. Responsible for the success of e-commerce customer acquisition and the marketing and advertising budget. |
Lead Designer | Person leading the e-commerce design work. Responsible for the overall design of the e-commerce user experience. |
Lead E-commerce Developer | Software developer leading the e-commerce development team, also responsible for e-commerce solution architecture and integration design. |
Analyst | Person in a supporting role who assists in interpreting and reporting analytics related to e-commerce. Works closely with design and technical development teams. |
Digital Strategist / Digital Marketing Specialist | Person designing and implementing digital advertising and marketing for the online store. Works closely with designers, software developers, as well as the product owner and marketing lead. |
Establishing a B2B e-commerce platform and its associated tasks may seem like a large and complex entity – often, however, it can start with quite a light and agile model. It is crucial to consider all necessary perspectives.
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Crasman Ltd
27 Oct 2021
