Cross-border business-to-business e-commerce transactions are expected to reach US$1.2trn within the next five years, according to new research, and if companies are to take advantage of this they will need to provide a more flexible, scalable and mobile customer experience.
E-commerce is radically transforming the way in which B2B companies operate and opening up new market opportunities around the globe, while simultaneously challenging many established companies to keep up with more agile newcomers, according a new white paper from DHL Express and England’s Cranfield School of Management.
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“The most successful e-commerce companies today provide an enhanced customer experience comparable to what we all now know from our personal online shopping activities,” says John Pearson, CEO of DHL Express Europe.” To compete in this changing market environment, B2B companies are also having to change their supply chains, becoming more transparent, streamlined, responsive and flexible.”
According to the white paper, adapting certain website features and functionalities, such as product catalogues and live customer support, and better integrating front and back-end systems and end-to-end logistics processes are crucial for if companies want to improve customer experience.
The report has uncovered the five major challenges to global e-commerce growth.
- Digital infrastructure: The development of a B2B e-commerce platform must take into account the typical customer journey and incorporate functionality and technologies that enhance customer experience.
- Customer experience: Based on their experiences as a private consumer, more and more customers are expecting an ‘Amazon-like’ shopping experience from B2B companies with an e-commerce offering i.e. simple, flexible and convenient.
- Customer personalisation: Customers want personalised solutions and B2B e-commerce companies are offering those via a customer portal with content organised around a number of parameters: past purchase history; price optimisation algorithms that meet customised product price requirements; configure price-quote (CPQ) software to make online quotes and prices that are adjusted on the basis of the relationship.
- Seamless integration: The right mix of tools in B2B e-commerce is needed to deliver a seamless integration. This is mostly done through B2B omni-channel commerce, which is a multi-channel sales approach i.e. combining online, bricks and mortar store, tablet and/or smartphone options.
- Synchronisation of logistics: Logistics will play a critical role in any B2B cross-border e-commerce offering. This is not just about last-mile delivery, but also the overall fulfilment strategy. Business customers want speed, reliability, traceability and convenience in delivery, supported by an effective returns and exchange policy for damaged items/products.
“We have seen business-to-consumer (B2C) e-commerce grow at a faster pace than most other industry sectors in recent years, with premium cross-border shipments growing from 10% to more than 20% of the volumes of DHL Express,” says Ken Allen, CEO of DHL Express. “As this study shows, there is the same potential for cross-border B2B e-commerce to grow at a dynamic pace.”
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