Customers see e-commerce adoption in B2B as a mark of prestige; only those on the cutting edge have it, according to a survey by BtoB.
Prestige was one reason cited by a majority of those B2B companies surveyed for their adoption of e-commerce. Use of e-commerce shows that a company is a high-tech, cutting-edge kind of firm, the survey revealed. The respondents felt that their clients respected them more for using e-commerce at a time when many firms have not yet made the leap. The fact that it reduces costs was the other main reason cited for e-commerce adoption—payment- and-transaction-related costs are one area that can be reduced using third-party sites.
This helps explain the continuing increase in the number of companies that have adopted B2B e-commerce. The number of B2B companies whose marketing strategies may be classified as “strong” or “complete” adopters of e-commerce has risen sharply in the past year.
The number of B2B companies who are committed to e-commerce as a means of marketing or selling rose to 31 percent in 2013 from 25 percent in 2012, according to a study by researcher BtoB released in June 2013. The study forecasts that 40 percent of B2B firms will have adopted e-commerce by 2014.
Only 15 percent of these companies use no form of e-commerce at all, according to the study which was sponsored by e-commerce hub Ariba Inc., and which surveyed 222 B2B companies.
E-marketplaces—portals that cater to buyers and sellers, and offer such functions as requests for quotes, bidding, and ordering—are cited as the preferred method of introducing e-commerce by a majority of B2B firms. When asked which e-commerce approach they’d most likely use by the end of the year, 72 percent of survey respondents cited e-marketplaces, followed by customer portals (43 percent), electronic data interchanges (41 percent) and electronic invoicing portals (40 percent). However, when it comes to initiating, executing, and managing electronic payments to settle these unique B2B transactions—typical B2C methods of payments fall short of their needs. The fact is B2B transactions and payments have significantly different requirements than B2C payments, both in the payment process, and the payment itself. For example, B2B transactions typically require:
- Transmission of rich data (structured and unstructured) that feeds corporate ERP, Procure-to-Pay (P2P) and Order-to-Cash (O2C) systems
- Management of multi-approver workflows based on amounts
- Compliance with SEPA, ISO 20022, EBICS, ACH, and RTGS standards
- Direct communication and collaboration between trading partners
- An ironclad way to ensure trusted trade between buyers and sellers of large ticket goods
To make payments efficiently through all of these different types of e-commerce providers, Traxpay can help. An interoperable third-party payments provider, Traxpay combines payment and related data together, reduces the number of payment exceptions and allows for faster reconciliation and dispute resolution. Traxpay also integrates into existing ERP and other corporate IT systems, and is a SAP-certified solution. Traxpay provides the ultimate in trusted trade with its built-in conditional payments features, its secure bank-grade private data center, and assurance that all funds are more highly safeguarded than at any bank. Traxpay can help.