The explosion is not caused by the final consumers. The phenomenon occurs in another scenario, far from the retail segment. The global dynamics shows a speed in online buying and selling transactions business-to-business (B2B) unimaginable until recently. A clear example is what is happening in China: today, 84% of commerce is online. Alibaba, a company dedicated to B2B and Taobao They are the best example. The latter even displaced eBay of e-commerce leadership.
According to a report from Kantar/ CACE and as in 2020, last year 5 out of 10 companies made sales through “marketplaces”, 6 out of 10 respondents indicate that the online channel gravitates more than 10% of the billing. Likewise, despite the fact that 2020 was “the” year for the development of e-commerce, 7 out of 10 firms consider that the level of e-commerce activity in 2021 was better than in 2020.And the expectations for 2022 are even higher. In line with the level of activity in 2021 and the perspectives for 2022, the e-commerce of companies continues to expand: 6 out of 10 companies reassigned or incorporated personnel for that channel”complete the job.
In that context, DHLExpress published the studyThe definitive guide to B2B e-commerce: The end of the traditional. The beginning of digital”, in which a strong growth of the B2B e-commerce market is also expected in the coming years. The survey indicates that by 2025, 80% of B2B sales will be made online. Even among suppliers and professional buyers, based on the momentum of growing digitization and new purchasing habits. Finally, it reveals that the millennial generation and its strong technological orientation drive the growth of the global B2B e-commerce market, to the point that 73% of all B2B purchase decisions correspond to this age group.
Context. The Covid-19 pandemic did not go unnoticed by this sector and had a direct impact on the pace of digitization and purchasing habits. “The Argentine market has a large component of manufacturers, wholesalers and distributors. We have a wide variety of industries and items supplied or with national products for this purpose,” he explains. Paul VelizCEO of BVS, a software agency with clients all over the world specialized in the development in Shopify (an e-commerce platform).
Despite this boom in online consumption, B2B still has a lot to grow. “The B2B e-commerce channel in several companies still does not represent the volume of sales that traditional channels, but they grow every month. This is because the channel is often not used to ordering online, or is not technified. But the reality is that we all have a cell phone and from there they can place their orders, without having to turn on a computer,” says Veliz.
The market is in that direction. “There is a clear trend in the adoption of new solutions, currencies and products in both the virtual and physical worlds,” he says. Virginia FolgueiroCEO and co-founder of minta startup of Argentine origin, whose main objective is to provide B2B companies the technological infrastructure to offer its own personalized payment and financial services to respond to the needs of its value chain, that is, of the shops.
Access. From his point of view, “we observe some advances that help to incorporate and reduce the friction of some segments that have access to very expensive technologies, to facilitate contactless payment and even without physical cards (for example: Apple Pay and Samsung Pay). ”. “The reality of the majority of the market is not that, that is why at mint we believe that it is important to work on the inclusion of those who do not have access to this type of technology.”, adds Folgueiro.
When mentioning the sectors that give the most impetus to electronic B2B, Veliz highlights the manufacturers and wholesalers that supply shops and small businesses. “The most typical cases are that of lubricants for vehicles, bookstores and food, which through e-commerce retailers buy from the distributor or company, often accessing discounts and special promotions for the e-commerce channel. Thus systematizing the process that was previously manual or through a vendor”.
The trend is installed, the future shows a positive outlook for corporate B2B. The tide rises. “The evolution of payment in the world will come from the hand of those large companies that already have an established relationship with a segment of businesses, whether because they provide them with financial or other services, that understand their needs in detail,” Folgueiro projects. . However, Daniel JejcicCEO of Avenue+, a company that defines itself as “a new concept of marketplace as a service”, warns that “the great challenges go through logistics costs and the delay in product deliveries, which is tied to the large volume of new players in the e-commerce market. -commerce (small and medium-sized companies) as well as the sustained growth of demand”. A deadly sin in times when technology can do anything.
by Marcelo Alfano
