By Brandon Spear, MSTS
More than 7,100 retail store closures have been
announced so far this year. And as e-Commerce develops into a perceived
necessity among consumers, more closings could be on the way.
Remain relevant and continue to scale, despite
the decline of in-store shopping, by reinventing your brand in the B2B space.
Catering to both B2C and B2B buyers can help pave the way for additional
revenue.
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Home Depot, for example, experienced a 23% increase in online sales, along with 4.9%
growth in total sales, after shifting some of its focus toward professional
clients. Set the stage for a similar boost in business by leveraging existing
strengths to enter the B2B market. From cross-country distribution to brick-and-mortar
infrastructure, taking advantage of current capabilities can help you gain a
leg up on the competition and engage B2B buyers even as brick-and-mortar
becomes a thing of the past.
Making The
Most Of Existing Capabilities
Even as you attempt to reach B2B buyers, it’s
worth keeping an eye on what’s happening in the B2C space. One company that’s
especially worth watching is Instacart. Using a crowdsourced delivery model,
Instacart has partnered with local grocery stores and retailers to deliver products
in as little as an hour. Instacart makes it easy for local retailers to compete
with the convenience of big-name brands such as Amazon. Rather than investing
in a delivery fleet, the retailers can leverage their pre-existing network of
brick-and-mortar stores to either retain or win back market share.
Although there’s plenty to gain from using
your distribution capabilities to meet the needs of B2B buyers, take the
following few considerations into account before rolling out a shipping
strategy.
●
Omnichannel order fulfillment: Regardless of
whether an order is being placed online, in-store or with a salesperson, there
shouldn’t be much debate over the availability of specific inventory. Clear up
any confusion over order fulfillment by providing each staff member with
insight into your company’s inventory. The greater visibility there is across
channels, the easier it will be to satisfy the expectations of B2B buyers.
●
A consistent purchasing experience: When it
comes to earning the loyalty of B2B buyers, consistency is crucial. Customers
want to know they’re going to have access to the same payment options no matter
which channel they use. Not only should you consider standardizing payment
options across channels, but it would also be helpful to offer custom pricing
contracts, purchase controls, relationship pricing and payment terms wherever a
customer does business.
●
Potential freight charges: Without contracts
for bulk shipments, last-mile delivery expenses can quickly add up. Carefully
consider the cost of shipping before taking on the responsibility of delivering
products to B2B buyers. In some cases, outsourcing delivery by partnering with
crowdsourced delivery companies may be your best bet.
Once you’ve solidified your distribution
approach, the next step in making the most of existing capabilities and
bringing in extra business is catering to the preferences of B2B buyers. When
presented with the option, B2B buyers often gravitate toward term-based
purchases. Considering their concerns regarding cash flow, it’s easy to see
why.
More than 80% of small businesses fail due to cash flow
problems. Provide B2B buyers with the peace of mind they’re looking for by
opening the door for invoicing and terms-based transactions. B2B buyers that previously
struggled to cover their expenses will appreciate the extra leeway terms can
deliver.
Whether it’s 30, 60 or 90 days, bring aboard Accounts
Receivable tools that can help you extend terms to B2B buyers. The sooner you
can accommodate cash-strapped buyers, the better chance you have of ushering in
more business.
As physical store locations continue to give
ground to e-Commerce, now is the time to reconsider your business strategy.
Instead of simply targeting B2C customers, you have the opportunity to leverage
current distribution capabilities and ultimately attract B2B buyers in a post
brick-and-mortar world.
Brandon Spear is the president of MSTS, a global B2B
payments and credit solutions provider. Spear leads MSTS with expertise in
managing large, diverse global teams. His strength is discerning and focusing
on the most important challenges facing an organization at a particular point
in time and unifying all stakeholders behind accomplishing a set of specific
goals. Spear has a unique ability to connect across all levels of an
organization and motivate staff with diverse skill sets, while ensuring common
alignment and great results. Connect with him on LinkedIn.
