The blurred boundary between B2B eCommerce and B2C eCommerce has been a hot topic in recent years. This becomes evident when looking at the numerous articles published on this subject over the past years. In this blog, we delve deeper into this phenomenon: do we indeed see this blurring (spoiler: yes, of course we do!)? Additionally, we address how your webshop in the B2B sector can distinguish itself.
Are the boundaries between B2B and B2C blurring?
In recent years, Dutch
articles,
blogs, or
information pieces have regularly appeared discussing the so-called blurring boundary or to elucidate the differences between B2B eCommerce and B2C eCommerce. We have also previously written about how you need to make your
customer journey in the B2B sector just as captivating as in the B2C. Traditional distinctions between these two sectors seem to have a counteractive effect. In B2B eCommerce, it traditionally revolves around long-term collaborations and strategic interests, while in B2C, it often involves quick decisions and emotions. However, this approach by no means covers the whole story.
The blurred boundary between B2B and B2C eCommerce is evident in a few developments:
- Technological Convergence: Mobile apps, chatbots, AI-driven personalizations. These are all technologies traditionally associated with the B2C market, but we increasingly see them in the B2B market. Customer interaction becomes more accessible and faster. You can read more about these developments and trends in our blog on B2B eCommerce trends for 2024.
- Customer Expectations: Customer expectations in B2B eCommerce seem to resemble those of B2C more and more. Customers expect a personalized (digital) experience, including targeted marketing to specific demographics. Additionally, customers also expect faster and more affordable deliveries, for example.
- Social Commerce: While it is customary in B2C to sell products through social media platforms like Instagram and TikTok, we are also witnessing an initial shift of this trend into the B2B market.
In addition to these trends, you can also consider companies engaging in D2C operations: manufacturers delivering directly to consumers. AEG, for example, encourages customers, in Dutch, to buy directly from the manufacturer. D2C eliminates the intermediary from the transaction and is an interesting (related) case in the merging of B2B and B2C. Furthermore, more companies are opting for a combination of D2C and B2B. Heineken is an interesting example of this. In addition to the traditional B2B approach, Heineken sells directly to consumers via Beerwulf, operating in different markets.
The merging of B2C and B2B eCommerce is sometimes subtle and sometimes overt, but we can indeed conclude that there is a certain blurring of the boundaries between B2B and B2C. But the question remains: what are the implications (and opportunities) for your webshop?
Implications and opportunities for B2B eCommerce
The developments outlined above have consequences for B2B eCommerce. Changes in customer and supplier expectations require companies to be flexible, adaptive, and customer-focused. These expectations may entail significant investments in technology, personnel, and strategic planning for your webshop.
Technological innovation
The technological convergence we observe, such as the implementation of chatbots, mobile platforms, or AI-driven personalizations, is aimed at making life easier for your customer and for you as an entrepreneur, providing a better experience. However, this does not tell the whole story, as leveraging these technological innovations requires something in return. As a company, you will need to invest in these technologies, which could include developing or implementing a chatbot or app, providing training or hiring new IT colleagues. This investment is crucial for companies to maintain their competitive advantage and stay ahead of the competition with state-of-the-art digital services. Additionally, it is also likely that your company will need to invest in an
eCommerce platform that can technically handle your required functionalities.
By leveraging innovative technologies, you can offer your customers a personalized experience. For example, investing in a good AI-driven chatbot can ensure that your customers feel better assisted without overwhelming your Customer Support department with inquiries. This, in turn, contributes to meeting customer expectations.
Customer expectations
Customers, even in B2B, expect more personalization and personal contact. You must adjust your marketing strategy accordingly. Data analysis will play an increasingly significant role: ensure that you know your customer and address their wishes and shortcomings. It may be wise to invest early in good business intelligence (BI). If you want to read more about BI, continue
here.
By better addressing the expectations and needs of your customers and serving them more like B2C customers, they will feel more valued. This enhances customer retention.
End of strict separation
Where B2B and B2C previously operated mainly within their own domains, the strict separation now seems truly a thing of the past. The example of Heineken with Beerwulf, a B2B venturing into the D2C market, was described above, and it is also becoming more common for B2B companies to enter the B2C market. Conversely, supermarkets such as Albert Heijn are also entering the B2B market. While traditional wholesalers did this in the past, more and more supermarkets are breaking into the B2B market. This increases competition for traditional B2B eCommerce companies but shows that creativity and out-of-the-box thinking can be a lucrative step.
If it is not possible to compete with companies breaking the market distribution roles, it is advisable to stick to your traditional role in B2B eCommerce. In this case, it is recommended to carefully consider how you position yourself. What makes your webshop unique?
Seize all opportunities
We'll rip off the bandage right away: no, fortunately, you don't have to completely overhaul your operation. On the other hand, it would be a waste not to look at the opportunities that the merging of B2B and B2C brings. The consequences and investments we describe above provide opportunities to enter new markets or deepen customer relationships. Additionally, there are numerous possibilities as more and more companies break the classic division between B2B and B2C.
It is clear that the boundary between B2B and B2C is fading. Now it's time to capitalize on it!