Software companies have started embedding financial services into their applications, whether that’s sending or receiving payments, enabling lending, or even providing banking services.
Now, most customers expect to browse websites and marketplaces that enable them to use embedded payment options at checkout for a seamless purchase experience, and now B2B sellers are bringing similar payment features to their B2B eCommerce platforms.
Even before the pandemic, B2B marketplaces were expected to generate $3.6 trillion in sales by 2024, up from an estimated $680 billion in 2018, according to payments research firm iBe TSD. They were already growing more quickly than most B2C marketplaces that predated them, and when COVID shutdowns hit, many companies scrambled to shift all purchasing online. A survey of business buyers conducted by Digital Commerce 360 found that 20% of purchasing managers spent more on marketplaces, and 22% spent significantly more, during the pandemic.
Embedded procurement is set to enable businesses to buy things like supplies through vertical B2B apps, instead of more old school channels like sales reps or distributors.
The ability to schedule recurring orders from the same software portal a business uses to processes payments, manage accounts, and handle payroll, makes a lot more sense for businesses. And companies that can offer those services are set to benefit from this burgeoning trend.
B2B sellers haven’t generally prioritized streamlining their eCommerce experiences because most corporate buyers have been comfortable with traditional processes, which tend to be longer. However, these methods may become obsolete as they fail to satisfy business clients.
A shift toward digital commerce in the B2B sector has been a long time coming. This acceleration of sales in the B2B sector thanks to the pandemic could prove lucrative for vendors that are well-positioned to cater to digital purchasing demands. In August, a survey of 85 business buyers revealed that 57% of respondents made more purchases on eCommerce sites during the health crisis.
eCommerce purchasing experiences that are too complicated or time-consuming run the risk of frustrating procurement professionals and leading them to abandon their shopping journeys. B2B vendors seeking to cater to the rising demand for digital purchasing options may therefore wish to examine the tools and solutions that remove frictions from consumers’ online shopping experiences and apply them to their own B2B platforms.