B2B Ecommerce Development: Key Differences & Pitfalls

Introduction: Why B2B E-commerce Development May Appear Easy.

B2B E-commerce Development. Many underestimate how complicated developing a B2B E-commerce platform may be. Although the B2C platform looks very much like a B2B platform, including Products, Cart, Checkout and Payment types. While developing the software system, the complexity of the B2B platform quickly becomes apparent to many project teams who are trying to create a fully functional B2B E-commerce Platform. Reason for Complexity: B2B buyers are different from B2C buyers. B2C Pricing Models are normally fixed, whereas B2B Pricing Models are very rarely fixed. Many B2B buyers purchase larger quantities than their B2C counterparts, and also, B2B buyers are more likely to Negotiate Price / Terms Based on the Volume of Product purchased. Most B2B companies that build E-commerce platforms will build their E-commerce B2B storefront on a B2C platform and eventually experience functionality, performance, and Scalability issues as their business Grows Over time. This article will outline the B2B E-commerce Development Process and highlight common pitfalls which often slow or even stop most B2B E-commerce Developments from reaching the market.

B2B E-commerce is Different from B2C E-commerce

One of the most common mistakes in developing B2B E-commerce platforms is assuming that B2B buyers act or think like Consumers when purchasing products.

Buyer Behaviour and Decision-Making Process B2B E-commerce Buyers:

• Buy Products on behalf of a Business or Organisation
• Have More than one (1) Stakeholder who is involved in placing orders
• Expect Pricing/Contract Negotiations
• Purchase for Speed and Reliability, and Not the Look of the Product
• As B2B Purchases are Generally Repeated Orders rather than “Discovery” orders

Complexity in Order Management Systems

Orders placed by businesses-to-business (B2B) customers can require:

• Large-Batch Volume Orders
• Custom SKU/Configuration
• Contract Pricing
• Credit Terms and Invoice Processing

This complexity must be managed at both the front-end and Back-End levels.

Creating Flexible Pricing Options: One of the Largest Challenges in B2B eCommerce

Pricing is often where many B2B eCommerce platforms fail.

Unlike B2C pricing, B2B pricing can include:

• Customer-Specific Pricing Lists
• Volume Discounts and Tiered Pricing Models
• Contract Prices and Negotiated Prices

Hard-Coding Pricing Logic and Relying on Plug-ins Quickly Becomes Unworkable.

E-Commerce Development for B2B requires flexible and effective pricing engines.

E-Commerce for B2B Accounts vs B2C User Accounts

B2B eCommerce is Account Driven, rather than User Driven. This means:

• Multiple Users With One Company Account
• Role-Based User Access and Permissions
• Approval Workflow For Orders
• Limits On Spending & Purchase Guidelines

Without a Strong Account Management Capability, B2B eCommerce Solutions Will Operate Chaotically.

Checkout and Order Processing Workflows Are Different for B2B eCommerce

Checkout Processing Workflows in B2B eCommerce Are Significantly Different Than Checkout Processing Workflows In B2C eCommerce.

Common Requirements for B2B Checkout Processing Workflows Include:

• Request For Quote (RFQ) Workflow
• Purchase Order (PO) Workflow Support
• Payment Terms Of Next Payment Cycle
• Partial Shipments and Back Orders Are the Norm

Trying to Get B2B Checkout Processes to Follow Standard Checkout Process Is A Common Failure Point.

Integration is a Requirement, Not a Choice in B2B eCommerce

Deep System Integration Is One Of The Key Distinctions Of B2B eCommerce Development.

Most B2B eCommerce Platforms Will Need To:

• Integrate With ERP Systems To Track Inventory and Pricing.
• Integrate With CRM Systems to Manage Customer Accounts.
• Integrate With Order Management and Fulfilment Systems.
• Integrate With Accounting and Invoicing Software.

For Many B2B Companies, their eCommerce Platform Is Just One Component of A Much More Complex System.

API-first Architecture Is Required.

Choosing Between SaaS Platforms and Custom B2B Ecommerce Development

Some businesses are testing B2B ecommerce by using SaaS models such as Shopify Plus and Salesforce Commerce Cloud.

While SaaS applications support many of the traditional capabilities found in B2B ecommerce, these applications were not designed to support advanced features, such as:

• Price logic complexity
• Workflow customization
• Full ERP integration
• Performance optimization

The flexibility, scalability, and unique requirements of many organisations will require investment in & customized development of B2B ecommerce solutions.

Scalability of B2B E-commerce

B2B ecommerce’s scalability goes beyond just increased traffic; it includes:

• Scalability of Price Logic
• Product Volumes
• Customer Bulk Purchase
• Performance at Peak Sales

B2C-based ecommerce platforms may not function best when used in a B2B capacity because they were built to handle lesser loads.

The Common Failures

Error #1. To treat B2B e-commerce in the Same Way as B2C e-commerce.

An organisation’s most common error is to treat B2B ecommerce as if it were similar to B2C ecommerce.

Common practice is to take a B2C ecommerce platform and then:

Eliminate the functions that aren’t applicable
Add additional plugins for completing certain B2B functions

The cumulative effect of doing this creates an unstable platform with slow performance and limited flexibility.

B2B ecommerce solutions must be built from scratch for the best results.

Error #2. Over-utilizing Plugins

Although the utilisation of plugins assists in providing speed in your e-commerce platform, it exposes you to substantial long-term risk due to the way they are integrated within the B2B e-commerce platform.

There is a direct correlation between the excessive use of plugins and their negative impact on B2B ecommerce performance.

The most common negative impacts associated with the extensive use of plugins are:

• A decline in the B2B ecommerce performance
• Issues during upgrades of plugins
• Increased vulnerability of your B2B e-commerce to outside intrusion
• Limits in the ability to customise B2B ecommerce functionality

B2B ecommerce must provide the core functionality necessary to run the B2B ecommerce operation as opposed to relying on a third-party plugin to fulfil the core functionality.

Error #3. Neglecting the Sales Process & Operation

B2B ecommerce will support and enhance the need for sales personnel, not replace them.

If an organisation does not include their entire sales workflow in the B2B ecommerce platform, they risk:

• Creating conflict between the sales and ecommerce channels
• Creating hurdles to internal adoption of the B2B ecommerce process by their sales team
• Creating miscommunication with respect to pricing or contracts

The successful implementation of your B2B ecommerce strategy will depend upon aligning your digital workflow with your current sales workflow. The information used is impactful.

Some examples of inaccurate data affecting B2B ecommerce sites are listed below:

• Misaligned Inventory
• Misrepresented Pricing
• Delayed Order Status

For most B2B companies, running your back-office in real-time (or close to it) means that preparing for failure will result in angry customers and additional operational expenses.

B2B Companies expect B2B Websites to support the following:

-Fast Product Search Options
-Repeat Orders that are Simple to Place
-A Dependable Order History

If your site gets a reputation for being slow and generates little value, you will experience low site usability.

When redesigning your B2B ecommerce site, think about maximising performance. The primary focus areas are:

-Complex Queries
-Personalised Pricing
-Large Volumes of Data

As it relates to handling B2B data for security and compliance, the following must be considered.

-Sensitive Pricing Information
-Contractual Information
-Payment or Credit Card Information

There are several security/compliance requirements common to B2B ecommerce companies. Some of them include:

-Role-Based Access
-Audit Logging
-Compliance with Industry Best Practices

Security should never be an “afterthought.”

As the amount of mobile access to the B2B transaction channel increases, B2B ecommerce sites must adapt to the buyers’ expectations of:

-A mobile-friendly Dashboard
-Ease-of-Use on Mobile when re-ordering
-Easy Access to Account Data

Designing B2B ecommerce sites that provide a responsive and Mobile-1st experience without sacrificing functionality is critical to compete with B2C.

There are many different challenges related to the Testing and Quality Assurance of B2B ecommerce platforms compared to B2C ecommerce platforms.

Some of the challenges in testing B2B ecommerce sites include:

-Ordering with Multiple Price Points
-Role-Based Permissions
-Complex Integration

Without proper testing, the above can result in:

-Pricing Errors
-Broken Order Routing Approval Processes
-Order Processing Errors

Expect to spend significant time and effort to avoid order processing failures. Ensure you have both robust testing and quality assurance strategies in place.

Challenges to Change Management and Adoption

If your users do not adopt a B2B eCommerce platform, it will fail, regardless of how great the platform itself is. The most common adoption challenges associated with B2B eCommerce platforms include:

• Sales Teams That Don’t Want to Use the Solution.
• Onboarding Customers Can Be Challenging.
• Repeat Customers Experience a Poor UX.

The best B2B eCommerce platforms are those that provide comprehensive training, detailed documentation, and continuous opportunities for feedback.

When Should You Consider Rebuilding or Modernising a B2B eCommerce Platform?

If you have any of the following situations, you may need to completely re-architect your B2B eCommerce Platform:

• Custom Pricing Logic is Unmanageable
• Integrations that Are Brittle
• Performance Degradation Under Heavy Load
• Feature Development Has Slowed Dramatically
• Incremental Modernisation Usually Works Better Than Rebuilding from Scratch.

High-Performing B2B eCommerce Platforms Have a Few Key Best Practices for Scaling:

High-Performing B2B eCommerce Platforms Incorporate Common Elements:

• API-First Architecture
• Modular Services to Support Pricing and Orders
• Deeply Integrated with Core Systems
• Performance-Centric Design
• Strong QA and Observability
• These Best Practices Will Help Mitigate RISK and Support Long-Term Growth.

Final Thoughts on B2B eCommerce Solutions

Developing a B2B eCommerce platform is not simply about developing a traditional storefront. Developing a B2B eCommerce platform is more about developing a set of systems that can support complex buying relationships, multiple pricing models, and complex operational business processes.

In cases where centralised efforts are not available or when teams underestimate these differences, teams will often find that they must rebuild the solution within one to two years of initial development.

Teams who approach the design of their B2B eCommerce platform with intention will end up developing platforms that:

• Increase Buyer Adoption
• Decrease Operational Friction
• Easily Grow With the Organisation

Logiciel Solutions enables organisations to develop and create B2B eCommerce Platforms that reflect the buying patterns of real-world customers. Our AI-first approach to engineering allows us to design scalable architectures, create deep integrations between systems, and provide an ever-adaptable solution for our clients.

If your B2B eCommerce Platform seems like it is fragile, slow, and/or difficult to evolve, the problem is rarely a lack of demand. The problem is almost certainly related to your design.

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