Checklist for D2C/B2C Brands and Retailers: Is Your Business Ready for B2B?
Diversify or die.
Sounds dramatic, right? But this saying holds weight for a reason. Thriving businesses embrace change and actively seek the next big opportunity.
In ecommerce, focusing only on B2C customers may eventually limit your growth. While prioritizing B2C was likely a smart move early on to tap into a strong market opportunity, many brands and retailers eventually hit a ceiling. Growth slows as markets become saturated, customer segments thin out, and competition heats up.
In an unpredictable economy, relying solely on consumer demand leaves businesses vulnerable. For direct-to-consumer (D2C) brands and retailers, diversifying into the B2B space can provide more predictable revenues and stability, especially during economic downturns or seasonal fluctuations. And, with B2B ecommerce projected to exceed $2 trillion in sales by 2024, it’s no wonder this opportunity has captured the attention of commerce and digital leaders.
However, transitioning from B2C to B2B isn’t just about tweaking your current model. It requires careful evaluation of your readiness and a strategic approach to entering this new space. Here’s a practical checklist from Red Van and our partner, Balance, to help you assess whether your business is ready to make the B2B leap.
Market Viability
Key Question: Is there a demand for your products in the B2B space?
Before diving into B2B, you need to ensure there’s a market for your products among business buyers. Start by evaluating demand:
Analyze Your Current Customers: Are any existing customers purchasing in bulk or asking about wholesale options? These inquiries may signal untapped B2B opportunities.
Research the B2B Landscape: Dive into market segments where your products align with business needs. For example, a consumer skincare brand might find a lucrative niche selling to spas or beauty salons.
Assess Competitive Dynamics: Review what similar businesses are doing in the B2B space. Are competitors thriving, and if so, what can you learn from their approach?
Supply Chain and Operational Scalability
Key Question: Can your operations handle larger orders and higher expectations?
B2B buyers have different expectations than individual consumers. They need reliability, efficiency, and scalability. Your supply chain and operations must rise to the challenge:
Capacity for Bulk Orders: Assess whether your current infrastructure can handle larger order volumes without compromising quality or delivery timelines.
Customization Capabilities: Many B2B buyers require tailored solutions, such as custom packaging, product bundling, or unique configurations. Can your supply chain adapt to these needs?
Reliable Delivery: Business buyers often work on tight schedules, so timely and consistent delivery is essential. Evaluate your logistics partners and processes to ensure they meet these expectations.
Payment Options and Financial Considerations
Key Question: Are you ready to offer flexible payment terms?
Unlike consumers, businesses rarely pay upfront. Offering flexible payment options is essential for meeting buyer expectations:
Net Terms: Allow buyers to pay on net terms (e.g., Net 30 or Net 60). This flexibility can drive larger order sizes and strengthen customer relationships.
Automated Invoicing: Invest in tools that simplify invoicing and accounts receivable processes. This will reduce administrative burdens and improve cash flow.
Credit Risk Management: Evaluate your ability to manage credit risk effectively. Bad debt can undermine the benefits of offering net terms, so proper vetting and monitoring are crucial.
Technology Readiness
Key Question: Do you have the right digital infrastructure?
B2B commerce requires the right technology stack to support the complexities of bulk ordering, multi-stakeholder workflows, and customized pricing. Here’s what you’ll need:
A Scalable Ecommerce Platform: Platforms like Salesforce and Shopify Plus offer B2B-specific features, such as contract pricing, tiered discounts, and account-based purchasing.
CRM and ERP Integration: Integrations between your ecommerce platform, CRM, and ERP are critical for managing customer relationships, tracking orders, and controlling inventory.
Automation Tools: Automating processes like reordering, invoicing, and payment collection will save time and improve the buyer experience.
Sales and Marketing Strategy
Key Question: Can your team adapt to longer sales cycles and relationship-driven strategies?
B2B sales are fundamentally different from B2C. They involve multiple decision-makers, longer buying cycles, and more complex negotiations. Your sales and marketing strategies need to reflect these realities:
Sales Team Training: Equip your sales team to handle relationship-driven selling. This includes understanding the unique needs of B2B buyers, navigating procurement processes, and managing multi-stakeholder approvals.
Marketing Focus: Shift your marketing efforts from emotional appeals to value-driven messaging. B2B buyers prioritize ROI, efficiency, and long-term solutions over impulse buys.
Take the Leap into B2B Commerce with Confidence
Expanding into the B2B space is a bold move, but it can unlock real growth for your business when done right. By assessing market viability, scaling operations, and preparing your technology, you’ll be set up to thrive in this expanding market.
Of course, you don’t have to navigate this journey alone. eCommerce consultants can optimize your technology stack for B2B success, helping you identify gaps, recommend tailored solutions, and ensure a smooth implementation. Partnering with payment solutions providers can also simplify credit assessments, invoicing, and collections, so you can focus on scaling without cash flow headaches.
At Red Van and Balance, we’re here to help. Our resource, A Retailer’s Guide to B2B Success, offers actionable strategies to help you capture growth in the B2B market.
Thinking about making the move? Let’s talk! Contact us today and take the first step toward building a more diversified, future-ready business.