Tag Archives: b2b ecommerce

The 1 B2B Payment Problem You Need to Solve Today

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Making your B2B payment system easier to use could dramatically reduce your business costs

Making your B2B payment system easier to use could dramatically reduce your business costs

B2B payment systems are slowly shifting from manual processes like checks into streamlined electronic processes like credit cards and PayPal.

If you haven’t made the switch yet, it’s time to get onboard if you want to reap the benefits.

According to the report “ePayments Rising: The 2014 Market Report,” 51{cb377218d5687e54e8ee9149518f87201a393a7c1db5e8076e9d750029ec0dc3} of survey respondents in the Accounts Payable (AP) department cited cost savings as the biggest benefit to ePayments.

Streamlined payment processing and increased accuracy and control of payment delivery came in a close second and third.

Unfortunately, many businesses have one glaring problem with their B2B payment system.

If you have this same problem and you don’t address it, then you won’t have a functional and profitable B2B payment system.

What is this problem?

You’re Not Offering Enough B2B Payment Options

If you can’t offer more than 1 payment option, your customers are going to be very unhappy.

A study entitled “Intershop E-Commerce-Report 2016” surveyed 400 B2B decision-makers and found that 47{cb377218d5687e54e8ee9149518f87201a393a7c1db5e8076e9d750029ec0dc3} of participants agreed that the #1 feature for pleasing customers visiting their ecommerce site was flexible payment options, including credit cards and PayPal.

Yet, “a majority (51 percent) of organizations’ B2B payments continue to be made by check” according to the 2016 AFP Electronic Payments Survey.

This is a problem for 2 reasons:

  1. Most businesses are limiting the payment process for their customers, which could drive away potential prospects.
  2. Using paper checks makes you more vulnerable to fraud.

Point #2 might seem counterintuitive, but criminals are targeting checks more often than other B2B payment methods.

The 2017 AFP Payments Fraud and Control Survey revealed that “75 percent of organizations experienced check fraud in 2016. This is an increase from 71 percent in 2015 and a reversal of the declining trend in check fraud since 2010.”

As long as companies refuse to adopt electronic B2B payment methods, both their customers and themselves will continue to suffer.

But you don’t have to follow in their footsteps.

If you want to offer your customers a superior buying experience while protecting your company from fraud, then implement the following solution.

The B2B Payment Solution That Will Make Your Customers Happy

There are various things you can do to improve your ecommerce site and your customers’ shopping experience in general, such as:

If you simply want to improve your B2B payment system and solve the number one problem most buyers have with ecommerce checkouts, then you’re going to need to provide a few specific payment options.

Here are 3 of them:

Purchase Order

A purchase order is a commercial document that explicitly details the type, quantity, and agreed upon price regarding the inventory a buyer is purchasing from a seller.

Your B2B payment system should be set up to allow these types of transactions as they’re very common and most businesses are comfortable using them.

Your B2B payment system and ecommerce platform should also integrate with your accounting and backend software so that all orders and available credit for both online and offline purchase orders are tracked simultaneously.

PayPal

Paypal helps you save time and resources by automating the payment process.

Manual invoicing is error-prone and time-consuming. PayPal lets you send invoices by email that are easily paid with a few clicks of the buyer’s mouse.

Plus, if your B2B payment system on your ecommerce platform is ready to accept PayPal, your customers’ payment information will be secured on PayPal’s servers, not yours – increasing the security of these online transactions.

Cash on Delivery

Cash on delivery (COD) is a convenient payment method whereby the buyer only pays once the seller’s shipment arrives.

This type of B2B payment method helps skeptical buyers take a chance with your brand, especially if you’re not well-established since they don’t have to pay until they receive your products.

Here’s How to Get a Complete B2B Payment Solution

There exists a platform that allows you to provide the all of above B2B payment options and more to your customers – PayPal, COD, credit cards, purchase orders, etc.

It even allows you to track your inventory in addition to every sale and integrates with your accounting applications.

In fact, it allows customers to place orders, view order history, check order status and reorder from previous orders 24/7/365.

It’s a complete ecommerce store, and inventory management system all rolled into one.

If you want it, here’s what to do next…

Optimize Your Payment Methods and Online Sales with Our B2B Ecommerce Platform

You can publish your complete catalog online and allow your customers to easily browse your product listings – with the option of multiple catalogs for different customers. You have full control over the fulfillment process right inside your ecommerce dashboard with pack/pick/ship functionality built-in to the platform. It integrates completely with your inventory management to automate your stocktaking process. If you’re looking for a complete solution, you just found it.

Start your free 14-day trial of DEAR Inventory today!

Try DEAR for Free

No Credit Card Required

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Use Product Bundling to Grow Your Profits

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Grow your customer base and increase average order size with product bundling!

Grow your customer base and increase average order size with product bundling!

Growing a business means growing sales, which can be done a few ways.  A couple of go-to strategies include finding more customers and increasing your average order size.

Wouldn’t it be nice if you could do both at the same time, all while making your offerings more attractive than the competition’s?

Luckily, there’s 1 simple strategy that does exactly this:

It’s called product bundling.

Product bundling is the process of offering several products for sale as one combined product.

But is it actually an effective way to grow a business?

To test this, researchers in the Netherlands conducted a study to understand the effects of bundles on purchasing decisions.

Their study revealed that product bundling does, in fact, create an incentive for consumers to not only choose to buy from a particular brand (hard enough in and of itself), but even go so far as to switch from one brand to another (even harder).

So if the shop across the street offers a single slice of pizza, but you offer a slice paired with chips and a soda, customers are more likely to choose you over them.

But it’s not as easy as just throwing 2 or 3 products together and putting them on your digital or physical shelves… there a few things you need to know to make product bundling successful.

Read on to check out our 5 tips to start profiting from the power of product bundling quickly and easily.

1. Offer “Mixed Bundling” not “Pure Bundling”

When it comes to marketing, there are two types of bundles:

  • “Pure bundling” is when you ONLY offer a bundle, without offering those same products as standalone items.
  • “Mixed bundling” is when you offer standalone products AND a bundle of those products. It’s also the best type of bundle if you want more cash and customers.

2 researchers, Vineet Kumar and Timothy Derdenger, studied the sales of Nintendo’s Game Boy Advance and Game Boy Advance SP consoles, along with the games for both devices, between 2001 and 2005.

Essentially, they found that even though consumers may perceive the value a bundle (the Game Boy + a game) less than the individual components, they still bought MORE units of the bundle than of the individual products.

A driving factor behind this, though, was that consumers had a choice – they could either buy the bundle or buy the game and system separately; a “mixed bundle.”

When Nintendo offered a “pure bundle,” revenues decreased by 20{cb377218d5687e54e8ee9149518f87201a393a7c1db5e8076e9d750029ec0dc3}, meaning hardware sales fell by millions, and software sales fell by over 10. Ouch!

If you want to maximize your ROI from product bundling, make sure you clearly present both standalone and bundle options to your customers.

2. Offer Bundles That Make Sense

The key to great bundles is pairing related items together.

For example, a Christmas tree cookie cutter + box of cookie mix + frosting is a festive baking bundle. These products logically belong together and complement each other.

Some producers accidentally find themselves offering a “multi-pack” instead of a bundle.

In this example, a multi-pack would be a star cookie cutter + a tree cookie cutter + an ornament cookie cutter sold together. Since they’re variations on the same product, this isn’t the kind of “bundle” we’re talking about.

You also want to be careful not to offer totally unrelated items, like a 6-plate set + a mop.

Sure, they’re both “household items,” and you might use both in the kitchen, but they don’t match the “buyer’s intent.” When someone is thinking of buying plates, they’re thinking about how they’ll look when they serve dinner guests and if they’ll match their silverware, not how they’re going to clean their floors after everyone’s left.

If you want a quick way to find bundle ideas, search for products related to yours on Amazon, then look at the “frequently purchased together” section under a particular product’s listing.

With all the data Amazon has at its disposal, it’s a safe bet that they’re offering the items that are most likely to sell together, signaling to you which products you’ll be able to successfully sell in a bundle.

Learn more about crafting unique bundles to sell on Amazon here.

3. Create a “Bundle Brand”

An often overlooked value of product bundling is that it allows you to create a totally unique product, with a unique SKU, that your competition will find much harder to replicate.

Think about it this way:

There could be 20 sellers of selling plates that look like some you’re offering.

But fewer sellers could offer a bundle pack of plates and silverware that both look similar to those you could offer.

And if you create a special brand, a trademarked “collection” of dinnerware, copying you will be near impossible.

The more products you have in a category, the more possibilities you have to mix and match to create totally unique listings.

And the more likely your bundles will help you stand out from the crowd.

4. Sell on Bundle-Friendly Platforms

Recognizing the value of product bundling, the major internet retailers are very friendly toward product bundling and will gladly help you set up new bundles. But any well-established marketplace is great for testing different bundles to find a winning package.

So if you’re business’s ecommerce site is already generating a good amount of sales, the right plugins will help you test out new ideas quickly.

Here’s a bit more information on bundling using top ecommerce platforms:

Amazon

Amazon has a straightforward list of rules and recommendations for product bundling. Learn more about their policies and recommendations here.

Shopify

The Shopify app store includes an app that makes it easy to offer bundles just like Amazon’s “frequently purchased together” section, as well as discounts when customers buy them. Check out the app here.

Woocommerce

The Woocommerce Extension Store also features product bundling app similar to the one offered for Shopify, check it out here.

5. Track Bundle Sales and Adjust Accordingly

Wouldn’t it be nice to be able to read your customers’ minds and create product bundles you know they’ll buy?

Then be sure to collect data on their buying patterns!

To create effective bundles, you’ll want to collect customer data around:

  • What they buy separately
  • What they buy together
  • How often they’re buying
  • How much they’re willing to spend

Once you know all this, you can create bundles tailored specifically for your existing customers to grow your repeat business, as well as grow your average order size for new and existing business.

And don’t stop collecting that data!

Continue to track the success and failures of your product bundles and adjust them accordingly.

But how do you effectively track your sales and customer data?

With inventory management software that centralizes all your stock management and tracking under one hub, seamlessly integrates with multiple ecommerce platforms (including the ones we listed above), and gives you up-to-the-minute reports about your customers’ buying habits.

 

Ready To Profit from Product Bundling?

Experience the stress-free automation and integration that cloud-based inventory management software can provide your ecommerce business.
Start your free 14-day trial of DEAR Inventory today!!

Try Dear for Free

No Credit Card Required

 

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10 Tips to Thrive with Online Wholesale

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Increase profit in online wholesale

Increase profit in online wholesale

Thinking about expanding your business by getting into online wholesale?

It can be a scary and stressful venture at first. The downside is that selling wholesale online requires a bit more knowledge and up-front effort than cold-calling or setting up your booth at a tradeshow.

The upside is that once you get going, it’ll be much easier to win new customers, grow your business, and automate your sales.

To help you get started, here’s our list of 10 tips for online wholesale success.

1. Make It Easy for Your Customers to Buy from Your Website

If you want to streamline your wholesale business through online sales, you’ll want to start by optimizing (or creating) your ecommerce website. This means making it as easy as possible for customers to find your products, learn enough to decide to buy, and ultimately place an order with you.

Here are a couple things to keep in mind:

  • Offer a secure checkout experience by integrating your website with a top online payment processor that includes industry standard encryption.
  • Accept multiple forms of payment (various credit cards, Paypal, etc.) to allow customers to use their preferred method.
  • Collect the minimum amount of information needed to process and fulfill the order; name, email, and delivery address will all be required, but fewer details to enter means an easier process and more sales.
  • Make your site mobile responsive so that any customer, anywhere can buy from you easily.

Getting these right will ensure your customers trust you and are confident when buying from your business.

For a few more tips on streamlining your online wholesale system, check out this list from KissMetrics on making the payment process easier.

2. Join Multiple B2B Ecommerce Marketplaces

A huge part of maximizing your online wholesale efforts is utilizing sales channels beyond and in addition to your company website. Online B2B marketplaces allow you to quickly set up shop on platforms with existing traffic and customers, so you can quickly find new business and expand your reach globally.

Consider both specialty markets like Joor, which targets fashion buyers and sellers, as well as general markets like Wholesale Central.

Check out our post about online wholesale marketplaces to learn more about expanding your online sales channels.

3. Compare Your Prices to Your Competitors

The broader online wholesale marketplace makes it easier than ever to “spy” on your competitors and their pricing strategies. Though most businesses offer wholesale prices at 40-60{cb377218d5687e54e8ee9149518f87201a393a7c1db5e8076e9d750029ec0dc3} of MSRP, researching your market and industry’s exact pricing structure will help you stay that much more competitive.

And wholesalers often choose to create tiered prices for different quantities of stock ordered; for example, you might sell large quantities of t-shirts like this:

  • 100 units at $12.50/each
  • 500 units at $10/each
  • 1000 units at $8.75/each

While there are all sorts of complicated calculations you can do to figure out exactly what you need to charge to remain profitable, especially if you’re a new company, observing your competition, matching and testing out their strategies yourself, and adjusting accordingly is a solid way to get going quickly.

4. Enforce Minimum Orders

A key to profiting at wholesale rates is to require minimum order sizes in order to leverage economies of scale in your favor.

With minimum order sizes, you’ll be able to generate enough cash flow and leverage large volume efficiencies, even at relatively large discounts compared to retail.

There is one exception to this rule…

If you’re a new wholesaler trying to eager to generate new business, consider offering smaller “sample” orders on a one-time basis. This will go a long way in selling customers on the quality of your products while still generating some much-needed cash flow.

And after a sample order is placed, your job is to provide fast fulfillment and excellent customer service to solidify the relationship and create repeat customers – for whom you can and should enforce minimum orders.

5. Offer Dropshipping to Your Customers

Dropshipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers customer orders and shipment details to you the wholesaler, at which point you ship the goods directly to their customer.

It can be an intimidating process if you’ve built a wholesale-only business, but it’s a good strategy for finding new customers through existing channels when you seem to be hitting a market saturation point.

If you’re interested in pursuing this business model, here’s a great guide to dropshipping from Shopify to help you get started quickly.

6. Earn High-Quality Testimonials

Building trust is essential for all B2B businesses and even more so in the early growth stages.

And social proof is one of the most powerful and achievable ways of quickly building trust with your potential customers.

Enter the testimonial.

From ratings and reviews on ecommerce sites like Amazon or eBay, to snippets of customer comments strategically placed around your calls to action, testimonials are a great way to show those on the fence that you deliver on the promises you make about your products and service.

The easiest way to get a testimonial is by sending a well-timed email to your customers simply asking for one. Allow them time to sell your product and get feedback from their customers in turn, so they’ll be glad to give you a great comment.

Then, send them either a brief survey using tools like Google Forms or Survey Monkey, or ask them to drop a review on a relevant website to make giving that feedback as easy as possible.

To learn more, check out this excellent post about the foolproof method for getting testimonials.

7. Take Excellent Photos of Your Products

If you’re selling physical products online, it’s essential that you help your potential customers understand what your products are like without relying on in-person experiences.

Though, as we mentioned above, you could offer sample orders to get your products into interested hands, this adds a lot of overhead that may be avoidable with the right kind of content.

The most important pieces of product info you can provide are high-quality, comprehensive photos of your products.

To maximize your chances of making the sale, invest in professional photography with simple backgrounds to showcase the best qualities of your products from all angles; offer close-up shots, display your product next to another item to show it’s dimensions, and even consider using a model to wear, hold, or use your product – whatever’s necessary to give potential customers a complete picture (pun intended) of your product before they buy.

More than anything else, great photos of your products will help your prospects and their customers visualize and understand your product making them more likely to buy from you.

8. Write Exciting Product Descriptions

Your product photos will attract interested buyers, but your descriptions will close the sale. To really convince a retailer to carry your product, focus on the benefits your product provides to them and their customers.

How will your products help them stand out from their competition and make more sales?

How will it make their customers lives better, more interesting, more fun?

How will it solve their customer’s problems and pains or help them fulfill their dreams?

Of course, make sure to include relevant features and technical specs like height, weight, different color patterns available, etc.; the more detail the better – be sure to provide all the information customers might want or ask for to maximize your chances of convincing them to buy.

9. Build High-Quality Relationships

Long-lasting businesses are built on long-lasting relationships. And to build these high-value relationships, excellent customer service is essential.

Here are a few things to keep in mind to help you deliver the kind of services that boosts retention rates:

  • Allow buyers to reach you directly through email
  • Create an FAQ to counter common objections and answer common questions
  • Reply to inquiries promptly
  • Respond to complaints quickly
  • Go the extra mile to solve customer problems and make them even more willing to do business with you again
  • Create incentive programs like special pricing for repeat customers

By fostering long-term partnerships with every retailer you work with, you’ll make it easier for them to do business with you – and that much harder to switch to your competitors.

10. Use Modern Inventory Management Software

Since you’re housing product to sell through multiple channels, you’ll need a way to limit the waste that comes from disorganization in order to efficiently scale and maximize profitability.

And the key to operating a streamlined and efficient online wholesale business is inventory management software – which will help you track sales, collect data from all of your sales channels and business apps in one place, generate reports on inventory levels, sales figures, and more, as well as easily manage a high-volume of orders.

Ultimately, with the right inventory management software, you’ll be able to integrate and automate your online wholesale business to reduce the stress of manually tracking inventory and sales, eliminate human errors, and make it just a bit easier to start and grow your business.

 

Ready to Accelerate Your Online Wholesale Business?

Experience the full benefits of cloud-based inventory management software can provide your online wholesale business.

Start your free 14-day trial of DEAR Inventory today!

Try DEAR for Free

No Credit Card Required

 

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