The ability to sell goods via the internet has been a real game changer, not only for consumer-focused brands and distributors, but also for business-to-business (B2B) organisations which now have a global market to go after - irrespective of their size. With a good website and the right logistics SMEs can take advantage of the same international opportunities as larger competitors - able to look and act the part despite having a fraction of the resources.
The potential is vast: the B2B e-commerce opportunity is twice that of business-to-consumer (B2C). Recent research from the UPS Industrial Buying Dynamics Survey 2015 reveals that more than half of European B2B buyers now source products online, and in 42% of cases this accounts for more than half their budgets.
The challenge, however, is the rising expectation of customers. Delivering to markets abroad means being able to match the convenience of domestic deliveries with convenient and efficient returns, for example. As B2C suppliers have long recognised, price and quality are expected as a given now; differentiation is about how easy a company is to deal with.
There is an urgency to this too, especially for B2B distributors. The internet makes it very easy for manufacturers to sell direct to customers, bypassing the need for wholesalers and resellers – especially if these are seen purely as a cost. The UPS 2015 Industrial Buying Dynamics study, conducted with 700-plus purchasing professionals in Europe, found that distributors are already being bypassed in 65% of cases.
This increases the pressure on distributors to prove their worth – which they can do by taking away the pain of purchasing, delivery and returns. Three-quarters of respondents in the survey confirmed that they would prefer to deal with a distributor with a user-friendly website and better customer service.
Based on our research findings, we’ve pinpointed five areas B2B suppliers should consider as they adapt to the new opportunities and demands presented by international e-commerce:
- Replicate local convenience on a global scale
Going after new markets means taking advantage of value-added logistics services that will make this seamless and painless both for your business and for the customer.
UPS My Choice provides complete visibility of where the customers goods are at all times, and - crucially - gives the customer full control over the final delivery point, with the option to change this while items are in transit.
Deliveries can be made – or redirected - not only to office premises or individuals’ homes, but also to UPS Access Point locations in local shops. This allows customers to receive products closer to the point of need if their plans change towards the time of delivery.
If the recipient is a field-based engineer, this removes the need to wait in or return home to pick up an expected parcel, because it can now be routed to where they are. That’s a lot of time (and cost) saved, and a better experience for the engineer’s clients.
2. Shine online
Be flexible in your website and mobile apps, making it easier for customers to buy from you online. As well as having a web presence that’s easy to find and navigate, you’ll need a site that has been optimised for use on mobile devices – which is now a primary channel for interacting with suppliers.
UPS i-parcel help your company with all of this, from search engine optimisation (to help propel your company up Google’s rankings), to web and mobile improvements.
3.Think big
Europe is the biggest export market, and the UK leads the way for B2B distribution. But as soon as you’re shipping products abroad, logistics become more important than ever in instilling confidence in customers to buy from you. If there is anything wrong with the shipment, the last thing the purchaser wants to deal with is a laborious returns process.
UPS provides a wide range of hassle-free returns options internationally – from collections at a specified address, to the ability to simply drop packages for free collection at the numerous UPS Access Point locations on local high streets in towns and cities across Europe.
4. Be competitive
The internet is now the first port of call for more than half of B2B customers sourcing industrial/commercial supplies, according to our survey. That is a vast opportunity for smaller suppliers which now have a chance to display their wares to a global market – provided they can back up their offerings with a smooth logistics service.
Convenience and choice are key to being competitive. If you’re a manufacturer you have an option to supply customers directly, with help from the right logistics partner. If you’re a distributor, you will need to adapt your services, raising your game to help manufacturers deliver the slick experience that B2B customers now expect when purchasing products online.
5. Get ahead
Success in global B2B e-commerce is all about being nimble and able to adapt your value proposition as markets need shift. SMEs have an edge here, being typically more agile and flexible than larger organisations with ingrained ways of doing things.
By partnering with UPS, and letting us guide your export ambitions and fulfil your logistics, you could steal a march on larger rivals. In addition to our convenient delivery and returns services and associated traceability, and our web consultancy and enhancement services, we can help you localise your web store front for each new target market abroad. Through our UPS i-parcel Global Access solution, we provide language and currency conversion services, making it possible and practical to reach international shoppers in your choice of more than 100 countries. UPS i-parcel Global Access provides a smooth, step-by-step transition to an international sales proposition directly from your existing website, with all the tools you need to optimise your business, all managed via a self-service dashboard.
Remember: small is powerful. And in a digitally-driven world there is no need to be limited by national boundaries.
To find out more about how UPS could help your business grow globally, visit the UPS Export Toolkit.
For more insight on SME export trends and opportunities read our 2015 European SME Exporting Insights Study [PDF]: https://exporttoolkit.ups.com/wp-content/themes/ups-eet/assets/pdf/european-sme-exporting-insights-study.pdf
Matt Guffey is marketing director at UPS (UK, Ireland and the Nordics)
Content on this page is paid for and produced to a brief agreed with UPS, sponsor of the Exporting to New Markets hub on the Small Business Network.
