Why is e-Commerce such an important part of today’s world? Simply put, because the world is moving more and more into the digital realm every day. According to marketing research firm Coleman Parkes, 21-40% of a business’s contributions are a direct result of e-Commerce and that number is expected to grow rapidly over the coming years. With the growing impact of the digital community affecting the way business is done, now is the time to start thinking about an e-Commerce solution.
The study by Coleman Parkes identified key issues for organizations adopting e-commerce solutions including resources, implementation, and developing a business model. Review the complete infographic here.
The Boston Consulting Group, the world’s leading advisor on business strategy, has produced an excellent article titled, Out in Front: Exploiting Digital Disruption in the B2B Value Chain. This report from their perspectives group presents the group’s latest thinking on the topic of e-commerce. Through extensive surveys and rigorous analysis, the group concludes that just as e-commerce has transformed B2C retail, the digital revolution building in the B2B marketplace is fundamentally changing the way customers interact; ultimately shifting the business model. Today’s buyers have very high expectations of the customer experience, and taking advantage of an e-commerce opportunity will require more than simply revamping dated storefronts and overhauling shopping-cart-only sites.
B2B e-Commerce transactions are estimated to increase from $889 billion in 2017 to nearly $1.2 trillion by 2021, as indicated in a Forrester Research study. Behind the uptick, according to a summarization published by MediaPost, is the preference for researching and buying online. The estimated $1.2 trillion is about 13% of all B2B commerce leaving 87%, or another $8.9 trillion, in untouched opportunity.
Also noted, is a shift from offline to online as sellers are expecting to see 55% of their B2B buyers complete at least half of their work purchases online by 2020, an increase of 17%. This channel shift can only be supported by B2B models that move away from legacy systems that are expensive and cumbersome, towards online platforms that are easily configurable, support multi-tenancy, and can scale to support innovative new business models.
Change comes quickly in the online world, and companies that move quickly to assess the changes underway and adjust their business models to meet shifting market dynamics and customer demands can establish significant leads over both traditional competitors and new entrants.