Inter-company e-commerce is growing strongly, even after the pandemic-induced e-commerce spike. B2B e-commerce often involves questions and complexities not encountered by consumer e-commerce merchants. Even a partial transition of existing business to an e-commerce model requires rethinking business models, skilled communication, and determined change management to succeed. You can read about modern operating models in B2B e-commerce in our earlier blog post.

In this blog, we will discuss the process of transitioning to B2B e-commerce and its various phases. This process is not uniform for all companies, but many of these themes resonate at some point with those embarking on e-commerce.

I. Define business objectives for B2B e-commerce

It is essential to set clear business objectives for B2B e-commerce. Transferring an old business model to a digital environment often works at best only adequately, so it's worthwhile to approach online business planning with a fresh start.

Goals set for B2B e-commerce can include, for example:

• Automating the sales of standardized products or services (= more time for salespeople to handle sales of complex or major deliveries)

• Cost-effectively testing the sales of new product or service offerings

• Selling additional services or value-added products to existing customers (support and maintenance services, extensions, and modifications)

• Enabling repeat orders for customers via self-service channels (e.g., ordering spare and consumable parts)
  
  
  

II. Determine actual customer needs

Once business objectives are clear, it is time to investigate customer needs even more closely. Define a comprehensive offering based on business needs that can be sold through e-commerce 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 – thus it is crucial to have note-taking tools ready when the first encounter occurs. Useful tools for identifying customer needs include service design, business design, user-centred design, and even prototyping.

As understanding of customers deepens, the focus and key requirements of B2B e-commerce become clearer.

III. Model the profitability of the business

Once business objectives and customer needs have been clarified, it is possible to begin calculating the actual profitability of e-commerce. Tools such as the Business Model Canvas or Business Model Navigator can be employed at this stage. A competent advisor can assist in modelling the true costs and revenue streams of e-commerce. 

After this phase, it should be clear what investments in e-commerce systems are possible and what their payback period might be. At the same time, the marketing of the e-commerce site and how to renew customer acquisition are examined.

At the end of the third phase, it is prudent to make a final informed decision and gain commitment from the company's leadership: 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 e-commerce site, it is sensible to start internal change management towards e-commerce. A new sales channel might seem like a fantastic opportunity to one person and a threat to another's job role. Therefore, it is important to communicate the following points within the organisation as early as possible:

• Why is e-commerce being initiated?

• What will change as a result of starting e-commerce?

• What does the change mean in practice for different people's daily lives?

• When will the change occur?

• How can individuals participate in the change?

V. Design the e-commerce platform

At this stage, e-commerce takes shape first in terms of ideas and later as a concrete interface. The design phase of e-commerce includes the following tasks:

• Designing e-commerce processes

• Integration design for back-end systems

• Technical design and specification

• Technology and partner selection

• User interface design

• Visual design
  
  
  

At the end of the design phase, a prototype is a useful tool for testing the e-commerce site and collecting feedback from customers. The prototype can also be used as an internal communication and change management tool.

VI. Implement the e-commerce platform

The implementation project with the chosen partner relies heavily on decisions made in the e-commerce design phase regarding technology and partner. 

During the implementation project, it must be decided whether the e-commerce site will be developed using agile methods or a more traditional waterfall model. The advantage of agile development is a more flexible approach to changes that arise during the project. The advantage of a traditional waterfall model, with the right partner, can be better predictability of budget and timeline.

VII. Launch and continue developing

B2B e-commerce should be launched when the core functionalities selected for the first version have been implemented and tested. It's prudent to keep the scope of the first version lightweight, as immediately after launch, an invaluable source of information for further development becomes available: genuine, purchasing customers. 

Customer understanding can be accumulated post-launch through analytics and traditional customer interviews. The task lists for further development of the e-commerce platform should strongly align with business objectives and customer needs. 

Tasks for ongoing development can be broadly categorized into three areas, which should be guided within a single development team:

• Customer acquisition: marketing and advertising

• Reporting: sales reports and e-commerce analytics

• Design and implementation: designing and technically implementing new functionalities

IIX. E-commerce development team

By the further development phase at the latest, it is necessary to form a permanent team for e-commerce development. The size of the team varies depending on the size of the business, and some roles may be 'visiting stars' utilized as needed – however, it is essential that all described needs are met.

Founding a B2B e-commerce platform and related phases may seem like a large and complex entity – however, starting can often be done with a fairly lightweight and agile model. It is essential to consider all necessary perspectives.

More on the topic:

Eight Steps to B2B E-commerce - Webinar Recording