Digital B2B wholesale does not have to cost a fortune!
According to studies, 60% – 70% of companies selling B2B and wholesale do not make use of a digital platform.
This not only means a lot of wasted time in the form of manual work. It also reduces the opportunities to retain customers and make additional sales (To learn why to read some of our other blog posts here). Something that no business can afford!
So why don’t more companies invest in an eCommerce solution for their B2B and wholesale?
Well, one of the major obstacles – especially for smaller businesses – is the price of such eCommerce software.
Historically, wholesale eCommerce software has been priced at thousands of dollars a month. Alternatives, such as customized platforms built from scratch, require a one-time investment of at least tens of thousands of dollars, followed by continuously paying for updates. Neither of these options is feasible for smaller businesses. The cost would simply be higher than the gains.
In this blog post, however, we are going to tell you that it won’t have to cost you a fortune to digitize your B2B and wholesale sales.
But first, let’s establish why digitizing your B2B and wholesale tends to be so costly.
The price of a B2B and wholesale eCommerce software
Traditionally, the price of B2B and wholesale eCommerce software has been costly. Especially when comparing it to the price of B2C (Business-to-consumer) eCommerce software.
The higher prices of wholesale eCommerce software are ascribable to two things;
- B2B and wholesale transactions being a lot more complex than B2C transactions
- A limited number of wholesale eCommerce vendors
Complexity
When a brand is selling its products to retailers or other businesses, the process tends to be a lot more complex than selling directly to the consumer.
First of all, differentiated pricing is very common in wholesale. Wholesale customers negotiate special prices based on their size and bargaining power. A brand selling to 100 different retailers might use 20 different pricing schemes. Building eCommerce software that can handle this seamlessly is quite a task.
But wholesalers and retailers don’t stick to only using differentiated prices. They also negotiate individual payment terms, delivery terms, and transfers of risks (incoterms). Also, very complex stuff to build into eCommerce software.
All in all, this level of complexity simply means that the software needed for B2B and wholesale ordering is more expensive to develop and maintain due.
If you want to learn more about the key characteristics of B2B and wholesale, we suggest reading our complete guide: The complete guide to B2B
E-Commerce vendors
The other reason why B2B and wholesale eCommerce tends to be a costly affair is the limited number of software vendors supporting the required functionality.
Generally, we see that B2B Commerce is 5-10 years behind the development in B2C eCommerce. Therefore – and perhaps due to the complexity mentioned above – there have been few vendors of B2B eCommerce software.
It’s a simple question of supply and demand; When there are few suppliers of wholesale eCommerce software, there is little competition. As such, the few vendors that do build software for wholesale can charge a high fee.
B2B and wholesale eCommerce does not have to cost a fortune
Luckily, the times are a-changing. Wholesale and B2B eCommerce that was once considered unattainable for small and medium-sized companies is now finally available in payable versions.
At Turis, we believe that the once high prices of wholesale eCommerce are no longer justified.
That is why we offer a very affordable alternative digital wholesale B2B platform at only €168 a month. This even includes extended functionality and features such as free integrations with accounting systems and automated data analyses.
This will not only save your time but also limit order mistakes. It will also help you gain insights into your business. This way, even smaller businesses will find it affordable to invest in B2B eCommerce. This allows them to experience the benefits of digitizing their B2B wholesale and enables them to further grow their business.
Can’t I just use a B2C webshop? Won’t that be cheaper?
We understand that it might be tempting to simply use a ”normal” consumer-faced webshop and “cramp” a B2B and wholesale framework into that. After all, despite the decrease in prices of B2B and wholesale eCommerce, you can still find B2C webshop software at lower costs.
But what might cost less money initially will probably end up costing you more in the long run.
Obviously, a “normal” webshop is not built with wholesale and B2B transactions in mind. You will find that you are missing a lot of the key features that are included in a dedicated wholesale product.
Some brands try to “patch” these shortcomings with various wholesale plugins. All of which cost an additional fee every month. In the end, putting plugin on top of plugin, you will end up with an unstable solution that is bound to break down frequently.
Choose a dedicated B2B and wholesale platform
We suggest using a tool dedicated to B2B and wholesale transactions. Even if it costs a fraction more.
If you are like most brands, your wholesale revenue accounts for roughly 80% of your total revenue. That should make it okay to spend a bit more on a professional tool.
Furthermore, using a dedicated wholesale platform instead of a “hacked” B2C webshop is the only way you are sure to enjoy the many benefits of digitizing your wholesale and B2B. Some of these benefits are increased sales, better customer retention, and less time spent on manual order handling.
You can learn more about the many benefits of digitizing your wholesale from our blog post: The 5 benefits of a digital wholesale platform
So even if a dedicated B2B and wholesale solution cost a bit more, the many benefits are sure to more than make of for the cost.