B2B, or business to business, is a sales model in which you sell your products or services to other companies instead of end customers. These companies then resell them or use them for their own business activities. Traditionally, the B2B model was built on personal contact and individual sales, but more and more companies are now launching their own B2B online stores. These save time for both parties – the seller and the buyer – and represent a modern, convenient, and fully functional form of B2B sales. A B2B online store can be a standalone project or a great addition to a regular e-shop where you sell to end customers (B2C).
What are the advantages and risks of a B2B online store? Why and how should you approach B2B in WooCommerce? Let’s take a closer look.
B2B online store: advantages, opportunities, and risks
Whether you already run a standard e-shop or are just planning one, B2B is a business model worth considering. Compared to traditional B2C sales, it brings several advantages and opportunities. On the other hand, it also comes with certain risks. Let’s explore them.
Opportunity to reach new customers
With the B2B model, you gain the opportunity to target new customers, such as companies and organizations. For some products or services, this may even be the only viable sales channel. If you decide to add B2B sales to your existing e-shop, you significantly expand your market reach.
More stable revenue
In the B2B model, long-term contracts and recurring orders are common, which can lead to greater stability and better revenue predictability.
Larger orders
B2B sales are typically associated with larger orders. On one hand, this increases demands on storage capacity and shipping methods, but on the other hand, it also brings higher turnover and profit.
Better use of resources
Do you have unused production or warehouse capacity? B2B sales can be an excellent way to optimize and utilize these resources.
Brand strengthening
Finally, B2B sales can help build your brand. Through additional distributors, more customers may become familiar with your products, which benefits your brand overall.
Need for investment
Like anything else, launching a B2B online store requires investment – financial, time, or both. You may need to expand your warehouse, adjust processes, develop a new marketing strategy, or improve communication with your partners. In short – it won’t be free.
How to get started with a B2B online store?
The process of launching a B2B e-shop is very similar to starting a standard one. You will need a platform to sell on, integrate payment, shipping, and customer service systems, and define your marketing strategy and business plan.
TIP: We covered the process of launching an online store in our article about starting your own e-shop.
You can also implement B2B into your existing e-shop. Whether you are launching a new B2B store or integrating B2B into your current one, keep in mind the specifics of this sales model.
Payment methods
Unlike B2C e-shops, where payment gateways dominate, B2B commonly relies on invoice payments after goods delivery. In a B2B store, you will especially appreciate invoice generation with a QR code for convenient bank transfer payments and a tool for verifying payment status.
TIP: In WooCommerce, the ideal solution is integrating your store with one of the invoicing systems that can automatically generate invoices with QR codes and verify payments.
Shipping
Unlike small parcels typical in B2C, B2B often requires shipping large consignments or even full pallets. Before launching wholesale sales, check which carriers can handle such shipments and whether they can be integrated directly into your e-shop.
TIP: Carriers such as FOFR or TOPTRANS can handle large shipments. With the right plugins, you can integrate them directly into your WooCommerce store and manage shipments easily from the admin panel.
Benefits for wholesale partners
In B2B, we usually talk about partners rather than customers. The relationship is closer and often based on individual agreements. Some B2B partners may receive special benefits, such as better pricing or free shipping. These benefits need to be technically implemented in your B2B store so you don’t have to handle each order manually.
B2B in WooCommerce
With minor adjustments, WooCommerce can effectively serve as a platform for a B2B online store – whether standalone or combined with your standard e-shop. How? With the right plugin.
The Wholesale plugin allows you to register wholesale partners and create individual accounts for them. You can set various benefits, such as discounts or free shipping. It also handles displaying wholesale prices and lets you define purchase conditions, such as minimum order quantity or minimum order value. For B2B orders, it offers the Invoice payment method.
With the Wholesale plugin, your wholesale partners can shop conveniently in the same store as regular customers. Learn more about the Wholesale plugin >>