E-commerce Business

E-commerce as an important basic in future business.

Internet commerce is an important topic of the present. Forecasts show that SMEs in Germany are wasting resources and paying too little attention to B2B online trading. The big players of the international market have long recognized the trend and use e-commerce not only in the end customer business. The examples of Amazon, Supply and Alibaba illustrate the potential of e-commerce and the new opportunities it offers.

E-commerce Has Not Yet Arrived In The German Middle Class?

Without a digital strategy, you hardly have a chance on the market. The digital market is growing rapidly and if you don’t want to leave it to the big players, you should act. In the end customer business, many SMEs have already discovered the importance of online trading and opened up the area for themselves.

But in B2B there is a lot of catching up to do if you want to stand up to Amazon and other foreign traders. Since 2016, Amazon has been active in the business-to-business segment with a digital strategy and represents a great danger for entrepreneurs who refuse digitalisation and see more risks than opportunities in the new market.

The fact is that today, more than ever, it is the solution to the problem that counts than the actual product. Consultants with innovative solutions are in demand and are shaping the digital economy. In online trading, you have the chance to change from a classic salesperson or sales representative to a consultant and open up a new level in B2B e-commerce.

The current status quo shows that the big players in the international sector have recognised their potential and are multiplying existing resources. If you want to keep pace as a small or medium-sized company, e-commerce is already the most important basic tool for you to become sustainable and competitive.

Opportunities And Risks In B2B E-commerce

As an SME with a high-coverage online presence, you benefit sustainably and create a foundation that will gain in importance in the coming years. More and more B2B platforms are being established, giving you the opportunity to find potential customers, business partners and suppliers, logistics entrepreneurs and contractual partners.

If you close your mind to these possibilities, around 50% of your resources will lie idle. The tendency is rising, because the search for products, problem solutions and trade partnerships shifts with continuous adjustment ever more into the Internet.

If you do not seize this opportunity, you will lose valuable customers to competitors and reduce sales potential. The biggest risk that you face in B2B online business is the fact that you are not using e-commerce and are thus omitting a channel that is becoming increasingly important.

Digital data exchange is booming and simplifies the handling of business. Your customers have long appreciated this option, so you should take advantage of it and adapt your business to digitalization. Today you should not choose between online and offline, but use both elements for a stable foundation and strengthen the B2B conversion. Digitization is not a passing trend, but an unstoppable development and change of markets.

Making Online Business Attractive For Customers And Partners

In the course of digitization you can combine your performance in B2B and B2C business with each other. The interlocking of field and office staff, online shop and catalogue has proven through numerous studies an added value and the positive effect on your awareness and competitiveness. Online shops for business customers, automated ordering processes with manufacturers and the usability of the shops increase the acceptance of your target group.

In e-commerce, you can develop an optimal digital strategy without having to operate two external shops and invest a lot of time in the presentation of products and services. E-commerce solutions that can be used simultaneously by commercial customers and end consumers via a separate access with password have proven themselves. Their task is to configure the access rights and thus create added value in the B2B and B2C business.

Another important aspect is online marketing. Without any measures to increase awareness, you limit your competitiveness and leave the field to the big players of your industry. For the change and reorientation of the markets it is important that your sales and marketing staff acquire new knowledge and are strengthened in the area of communication.

Even before the background that problem solving is more important than the actual product, consulting skills and security play a primary role in conversation.

Rethinking As A Chance

Have you ever considered digitalisation in B2B e-commerce as a temporary trend or avoided it out of concern for risks? Then rethink and open up an area that will be of enormous importance in the future and let you participate in the competition. Without a target-oriented and innovative online strategy, you have no chance of asserting yourself in the market and competing with a good online concept.

Business customers appreciate the simplification of processes and prefer business connections that can be realized online with a global orientation. To compete with Amazon and other big players, you need to be strategic and timely. The real risks are marginal if you compare e-commerce in B2B with your numerous opportunities and possibilities.

Reasons in e-commerce – this is how online trading works

What is e-commerce or online trade?

E-commerce refers to the sale of goods and services via the Internet via an online shop. The rapid development of the World Wide Web has triggered enormous growth in e-commerce. In practically all areas of life, goods and services can now be purchased via the Internet as a sales channel.

Industry Insights for E-Commerce Founders and Online Shop Operators
Although most essential products and services are already available online, the e-commerce sector continues to offer excellent opportunities. Better services, better prices or better customer service are all ways to differentiate an online store from the competition.

New offers can also be realised quickly, as existing online shop modules or online marketplaces with low entry thresholds can be adapted or used. Business models in online trading are therefore ideally suited for part-time entry into self-employment.

In this way, e-commerce projects can be easily tested without the founder having to set up expensive infrastructures. The marketability of a new online shop can therefore first be tested on a small scale, even from home. The lean start-up idea should be taken to heart in the initial phase of an e-commerce project.

According to this, you start your own business with an MVP (Minimum viable product). An MVP is a “minimally viable product” that is implemented with as little effort as possible. If the response is positive, iterations, i.e. improvements that are implemented on the basis of customer wishes, follow.

In this way, the start of a new e-commerce project can take place with little effort and risk. Nevertheless, the number of failed e-commerce start-ups is much higher than that of successful online start-ups. In most cases, these are the same reasons that are responsible for the failure of e-commerce projects.

Why many e-commerce start-ups fail with an online shop

In a study by the tech analyst CB Insights, the most frequent reason given for the failure of an e-commerce startup was a lack of customer demand (42 percent). The market simply does not need the supply in these cases. Many failed founders of an online shop have admitted that they have been more concerned with solving seemingly important tasks than with their market.

They have – erroneously – assumed that your offer is needed by the market. Then, after the launch of the online shop, they experience that there are no paying customers for the offer.

In other words, a successful e-commerce start-up must solve an existing market problem. Only then will the foundation have a real chance of success.

The second most common reason (29 percent) for the failure of e-commerce start-ups is that money simply runs out. This reason is often linked to the aforementioned lack of demand. In this case, further financing rounds will not take place, and for many online shops the end will come.