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  • strategic intelligence for business-to-business professionals

    Key findings from THE 2019 U.S. B2B

    ECOMMERCE MARKET REPORT Technology and competition drive rapid growth and innovation

    in how companies do business online

    B2BecNews, a Digital Commerce 360 brand

    SPONSORED BY:

  • OVERVIEW SIZING UP B2B ECOMMERCE . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Definitions of terms 5

    THE ADVANCE OF B2B ECOMMERCE WEBSITES . . . . . . . . . . . . . . . . .8

    CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

    ABOUT OUR SPONSORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

    SPONSORED Q&A PunchOut2Go 6 Kibo 10

    CASE STUDIES Crash course: Changing the way auto repair parts are purchased 13 How a drivetrain manufacturer retooled its website 16

    DATA Electronic transactions account for a majority of B2B sales 3 Getting into the game 8 What are your biggest challenges in building your B2B ecommerce business? 9 Most companies are investing more in B2B ecommerce 12 Many are investing a lot more 12

    2 ©Copyright 2019 B2BecNews (a Digital Commerce 360 brand) & Vertical Web Media LLC. All rights reserved. Data as of March of 2019.

  • 3 ©Copyright 2019 B2BecNews (a Digital Commerce 360 brand) & Vertical Web Media LLC. All rights reserved. Data as of March of 2019.

    OVERVIEW

    SIZING UP B2B ECOMMERCE Electronic Data Interchange, or EDI, which

    allows companies to exchange such standardized business documents as purchase orders and invoices via electronic networks.

    In 2018, these three electronic channels accounted for $7.579 trillion in B2B transactions, or 50.7% of total U.S. B2B sales of $14.951 trillion, up from 49.2% in 2017, according to the B2BecNews analysis.

    That means 49.3% of B2B sales, or $7.372 trillion, still took place through traditional B2B channels, such as phone and fax orders and face-to-face transactions. And that $7.372 trillion in offline transactions represents the still-massive market opportunity for B2B electronic commerce.

    Long before there was a commercial internet, companies did business electronically to cut costs and improve efficiency. But the internet dramatically accelerated the move from phone and fax to electronic ordering, and 2018 represented a milestone in that transition: For the first time U.S. companies made more of their sales to businesses electronically than through traditional purchasing methods, according to an analysis of business-to-business sales by B2BecNews, a publication of Digital Commerce 360.

    But business-to-business transactions are more complex than those in the business-to-consumer arena, and the B2B channels are more varied than the retail websites and marketplaces that attract consumer dollars. For the purpose of this report, B2BecNews has broken down B2B electronic transactions into three categories:

    Ecommerce websites and online marketplaces where many companies sell a wide variety of products;

    E-procurement software that allows companies to purchase electronically from approved sellers, either via their websites or electronic catalogs, and industry-specific and more general online networks and exchanges where registered buyers and sellers do business;

    ELECTRONIC TRANSACTIONS ACCOUNT FOR A MAJORITY OF B2B SALES Percentage of 2018 U.S. B2B sales by purchasing method

    Source: B2BecNews

    EDI 32.5%

    E-procurement/ networks

    11.0%

    Ecommerce sites 7.2%

    Manual transactions 49.3%

  • ©Copyright 2019 B2BecNews (a Digital Commerce 360 brand) & Vertical Web Media LLC. All rights reserved. Data as of March of 2019.4

    KEY FINDINGS FROM THE 2019 U.S. B2B ECOMMERCE MARKET REPORT B2B ECNEWS

    OVERVIEW • SIZING UP B2B ECOMMERCE

    A detailed look at the three main channels of electronic B2B transactions, with estimates of sales and growth in each channel and key trends.

    An in-depth look at Amazon Business, including the features it offers that account for its popularity, number of sellers and how it’s impacted other B2B players.

    Exclusive data from B2BecNews surveys of manufacturers, wholesalers and distributors on their ecommerce plans and priorities, their participation in Amazon Business and other marketplaces, and the inhibitors to their ecommerce growth.

    Articles on personalization on B2B sites and how punch-out software can boost online sales.

    Four case studies of how companies are investing to improve their B2B websites, overcome internal obstacles to ecommerce and boost online sales. l

    How channels break down EDI still accounts for the big bulk of electronic B2B transactions—64.1% in 2018, according to the B2BecNews analysis. But that share is steadily dropping as other web-based forms of B2B transactions gain traction.

    Growth is especially strong in e-procurement software and online networks linking registered sellers and buyers. Those channels accounted for 21.7% of B2B electronic transactions, up from 20.0%.

    There has also been slower but steady growth in sales on B2B ecommerce websites and online marketplaces, particularly the rapid growth of Amazon Business since its launch in 2015 by ecommerce giant Amazon.com Inc. Sales on these websites increased by 11.0% in 2018, according to B2BecNews, and accounted for 14.3% of electronic sales between businesses.

    The full report provides a detailed look at the evolution of electronic transactions in B2B commerce, with examples of how leading manufacturers, wholesalers and distributors are gaining market share. The full report includes:

    Download the complete 59-page 2019 U.S. B2B

    Ecommerce Market Report For 15% off the full price, use Discount Code: B2B2019KFR

    THE 2019 U.S. B2B ECOMMERCE MARKET REPORT Technology and competition drive rapid growth and innovation in how companies do business online

    B2BecNews, a Digital Commerce 360 brand

    B2B ECNEWS

    https://www.digitalcommerce360.com/product/b2b-ecommerce-market-report/

  • ©Copyright 2019 B2BecNews (a Digital Commerce 360 brand) & Vertical Web Media LLC. All rights reserved. Data as of March of 2019.5

    KEY FINDINGS FROM THE 2019 U.S. B2B ECOMMERCE MARKET REPORT OVERVIEW • SIZING UP B2B ECOMMERCEB2B

    ECNEWS

    DEFINITIONS OF TERMS

    Ecommerce sites: This category includes all ecommerce sales that take place on a B2B seller’s website, log-in portal or third-party marketplace with a shopping cart and electronic payment by credit or debit card, or other form of payment such as electronic checks or an online credit service.

    E-Procurement: This category includes software-as-a-service, or SaaS, and other forms of web-based procurement software that allow business buyers to connect to the seller’s system and to buy using specific purchasing and payment requirements agreed to by the buyer and seller. E-procurement software can also include a punch-out option, which lets a buyer link to a preferred supplier’s ecommerce site to browse and purchase among a contracted selection of products and pricing; once the buyer clicks to make a purchase, the transaction is completed in the procurement software, updating the financial and inventory records of both buyer and seller. E-procurement also

    includes exchanges, a vertical-industry or general business/industrial “many-to-many” internet network where businesses can buy and sell goods and services directly online based on the available inventory and price set by the seller or at a quantity level and price negotiated electronically between a buyer and seller. These include such vertical industry networks as GHX (Global Health Exchange), Exostar (covering such industries as aerospace/defense, energy, chemicals, life sciences and healthcare separately) and Oildex. It also includes sales through more general “many-to-many” internet networks such as SAP Ariba.

    B2B ecommerce: As used in this report, includes all sales through ecommerce sites and e-procurement channels. It does not include sales via EDI.

    Electronic transactions: Includes all sales through electronic channels, includin

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