All About B2B Procurement
Are you interested in B2B procurement? B2B stands for business-to-business, which is when businesses sell to other businesses instead of to consumers. It is a nuanced, detailed field with a lot happening. Let’s take a closer look at B2B procurement.
What exactly is B2B procurement?
B2B procurement, also known as e-biz, is the exchange of goods, services and information between different businesses instead of between businesses and consumers, which is known as B2C. Though B2B procurement started through online retail, it has expanded to include all kinds of sales avenues, everything from product procurement to company websites to information sites.
Who is your B2B buyer?
Generally, the market is divided into three groups: up-and-comers, established buyers and seasoned executives.
Up and Comers
The first group, the up-and-comers, is dominated by younger businesses often run by millennials aged 18-35. They tend to have extensive experience buying things online and tend to expect an experience similar to buying a college textbook on Amazon. In fact, many of these individuals do their shopping on Amazon Supply. They also tend to do most of their business-related shopping online and are also more likely to spend at least 1-2 hours comparison shopping for better prices before deciding on a purchase.
Similarly, the established buyer, usually aged 36-45, also does research online and comparison shops online. These individuals tend to use a smartphone or a tablet to conduct this research. They also tend to prefer Amazon Supply.
But by contrast, the seasoned executive, often aged 46-60, tends to be less familiar with
these internet-based means of shopping. While 57% of those surveyed had heard of Amazon Supply, only 12% of those in the established age group have made purchases using Amazon Supply. They also were less likely to use a mobile device to do research and comparison shopping.
In terms of broader trends, 37% of all corporate buyers expect to increase their budget for online purchasing in the coming year. 57% have also participated in online purchasing this year. In addition, corporate buyers are looking for an experience that they would be more likely to find on a B2C, such as Amazon’s website for consumers. Of those surveyed, 71% would increase the amount of their budget they could spend online if the user-interface was easier to follow and laid the information out clearly.