The B2B ecommerce market has grown considerably in recent years. The Analysis made by Frost & Sullivan states that the global B2B ecommerce market is expected to reach $6.7 trillion by 2020. With numbers like that, it is high time for your B2B business to leverage a digital commerce platform.
Operating a B2B ecommerce website is much more difficult than traditional B2C ecommerce. B2B customers thirst for additional functionality and personalization. Not all ecommerce solutions are able to handle B2B transactions, so the right choice of ecommerce platform is crucial to the success of your business.
Magento Commerce is the best solution to manage everything in one place. Magento includes all essential B2B features to run your ecommerce store effectively. In this article, we have compiled the Magento 2 B2B feature list to sustain your business growth.
Since the majority of B2B businesses managed to work on large and difficult ordering processes, they started to demand powerful front-end and back-end systems in order to run a successful business.
According to The Forrester Wave, Magento was labeled one of the “leaders” of B2B ecommerce. Magento Commerce is a perfect solution for B2B businesses that offers advanced functionality and allows you to self-manage your company accounts.
With Magento Commerce, you get powerful search functionality, personalized buying experiences, detailed reporting, extensive multi-channel selling, mobile responsiveness, seamless ordering, robust merchandising and an extensive native B2B functionality.
It has a rich set of built-in B2B capabilities, integrates with any ERP, CRM or other backend systems, and provides a flexible cloud infrastructure. To find detailed info check out our article Is Magento good for B2B?
As you can see, Magento is an all-in-one platform providing rich, built-in B2B functionality to reach even the most challenging B2B business goals. Let’s take a look at B2B ecommerce features in detail.
B2B customers usually know exactly what product to purchase before visiting your online store. With Magento 2 B2B quick order feature, the purchasing process has never been easier.
Magento quick order simplifies the order process to a few clicks. Customers only need to enter the product name or SKU (Stock Keeping Unit) numbers of the products instead of skimming through your store to manually add-to-cart. Quick Order can be used both by logged in customers or guests.
Magento verifies that the SKU numbers are in the catalog and includes the information like thumbnail image and price, thus the customer can make sure that entered SKUs are correct.
Moreover, with Magento quick order, customers can create multiple lists just by copying prior orders and choosing ‘add to requisition list’ in category pages making the reordering process as simple as possible.
Every B2B customer has different needs and to address these needs, Magento introduced the Multi-Source Inventory (MSI) aimed to handle the inventory across various sources or locations.
Magento Multi-Source Inventory gives the store owners the possibility to manage multiple sources and handle stock for every warehouse. The MSI helps to create multiple business structures, storefronts, brands, policies, tax rules, etc. Merchants can set access levels to maintain these business entities, so corporate customers can smoothly manage their accounts without merchant engagement.
With Magento Multi-Source Inventory, the B2B store owners can add and delete company users, sort users into a hierarchy that correlates with their business entity, define permissions and control for each user. They also cantrack inventory at multiple sources and integrate with third-party inventory systems.
To attract a B2B order, you should negotiate with the customer, as your customers are different and have their own requirements. Some of them are long-term partners, others are potential customers searching for distributors. If a business is shopping for a significant number of products or a great variety of assortment, they demand a personalized approach.
Magento Commerce gives your B2B customers the possibility to ask for quotes on a product and negotiate on pricing before purchase. Usually, B2C customers just pay for the product via credit card at the checkout, whereas B2B customers could initiate a request for quote (RFQ) right from the shopping cart rather than proceeding to checkout.
While initiating a quote, the customers can submit notes, leave comments, and upload files to justify their inquiry. They can also check the status of the quote, negotiate shipping prices and contact the merchants if needed. Merchants, in return, have the possibility to set the quote expiration date, modify and reject the quote, check the total cost info, and calculate the percentage to offer reasonable discounts.
A manager from customer support offers a quote to the B2B customer and the buyer can return and accept the price or continue on negotiating. Once these pre-sales negotiations are finished, the buyer can either approve the estimate or terminate cooperation.
Another major thing that tells apart B2C and B2B is how payments are organized. Payments in the B2B model are specific to each customer. The majority of B2B transactions are in debt and online payment is rare. It is quite common for B2B clients to share open accounts with a supplier.
Magento offers “Payment on Account” so merchants can activate or deactivate this option for their customers. This enables B2B businesses to give credit to their customers and set credit limits for each account. Thus, before placing an order, customers can view their credit limit.
With Payment on Accounts, you can set up payment methods for particular countries or per company, determine the optimal order volume for credit purchases, check the company’s transactions, and make the necessary changes to the unpaid debts, or let a trusted B2B customer go over the credit limit.
B2B merchants can customize catalogs and create price lists to manage the items, categories, and prices. With the customized catalog, you can determine which products to include and which to exclude, filter out items that are shown in search results, and more.
With Magento customized catalog, you can also copy existing catalogs for fast setup and accept new customers. With the ‘Bulk Actions Log’, you can monitor the status of the background processes at any moment.
Once the catalog is ready to be used, the next move is to configure custom pricing. You can simultaneously set prices for sole or multiple products and apply fixed or dynamic pricing models to provide percentage discounts.
Requisition lists allow B2B buyers to create a list of orders they often purchase jointly. This saves time when B2B customers want to reorder certain products or place big orders, as they can add items to the shopping cart directly from the requisition list.
Requisition lists remind the wishlist, but they are not the same. With Magento’s wishlist, when products are bought they are removed from the wishlist. With Magento Requisition Lists, you can save different lists tailored to various demands in a fast and easy way. With this B2B Magento 2 feature, you can store up to 999 requisition lists for each buyer account, relying on the configuration.
All these features are included in Magento Commerce by default. You could also implement extensions to fill the missing gaps and make the customer experience smooth and similar to B2C. To find detailed info, check out our article Magento 2 B2B Extensions that are aimed to optimize your overall business interactions.
Magento Commerce currently powers the most top 300 B2B ecommerce sites in the US. There are many ecommerce brands that use Magento for the B2B sector. The most famous are:
The success of these brands is based on enhancing communication between different systems and developing an effective marketing strategy. In the B2B industry, what matters a lot is keeping abreast of the latest trends, addressing the challenges and providing new values to customers.
Check out our article Top Magento B2B brands to see how they gained recognition and increased their business revenue.
The cost of Magento Commerce for B2B is based on a variety of aspects such as business goals, project size, hosting, design complexity, setup, extensions, marketing, developer hourly rates, features, and functionalities. The development costs for B2B websites are similar to any B2C store.
Magento Commerce license cost starts from $22,000 annually and depends on gross sales revenue.
Magento 2 Commerce Cloud license cost starts from $40,000 per year and is also based on gross sales revenue.
The development cost for a small-sized ecommerce website : $2,000 – $15,000.
The development cost for a medium-sized ecommerce website : $15,000 – $30,000.
The development cost for a custom ecommerce website starts from $30,000.
Whether you’re re-platforming to Magento, or want to start a new B2B store with a custom look from scratch, contact us and we will help you engineer a perfect solution for your business using Magento Commerce Cloud platform.