Why Ecommerce is Booming
“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday's logic” – Peter Drucker, Austrian/US economist
In the wake of the pandemic, many companies were forced to switch to new forms of collaboration. Many merchants have had to find ways to explore new opportunities or expand existing ones despite output restrictions and a shutdown economy. Experts are talking about an acceleration of digitization, and the trend in business-to-business (B2B) is also clearly moving toward digital commerce.
Uncertainty in times of crisis
Small and medium-sized enterprises (SMEs) in particular have been hit hard by the crisis. According to a survey by KfW (DEU), 2.2 million SMEs, i.e. 58%, experienced sales losses in March due to the COVID-19 crisis. 44% reported reduced liquidity.
Another survey conducted by the Hans Böckler Foundation (DEU) in April 2020 showed that 14% of respondents in dependent employment were put on short-time work. The high level of uncertainty makes the situation particularly difficult— no one knows how long this crisis will last. It is therefore critical for companies to use all the means at their disposal to explore potential opportunities, or to focus more strongly on new avenues and look to the future with confidence.
“Eighty-nine% [of B2B companies surveyed] expect that more than half will buy from online stores and marketplaces in 2025.” - it.daily (DEU)
Even before the crisis, it was apparent that companies were increasingly switching to online retailing. According to the ibi research study “B2B e-commerce 2020 - status quo, experiences and outlook” (DEU), one in five German companies generated more than 50% of their sales online in 2019. These figures alone make it clear that e-commerce is becoming increasingly important compared to previous years. Even before lockdown measures were introduced, 89% of the companies surveyed predicted that more than half of all business purchases would be made online by 2025. It stands to reason that this point in time will arrive earlier in the wake of the pandemic, as dealers are now being forced to reorganize their operations.
Discarding “yesterday’s logic” and using the crisis as an opportunity
There’s no question about it: changes and upheavals are always a challenge and require costs to be overcome. In such times, it is important for entrepreneurs to react agilely and not stick to outdated patterns and “yesterday's logic”. An adaptable business plan is paramount to running a successful business in today's fast-paced environment.
The crisis can thus serve as a welcome momentum to focus on e-commerce now and invest in one's own future. Initial analysis from Bloomrech (DEU) in March 2020 shows that B2B website traffic is up 20% and online purchases are up 40%. In the wake of the pandemic, e-commerce has become the most reliable way to boost existing business. Equipped with the right tools, you can offer your customers a smooth shopping experience online.
Optimally equipped for e-commerce with BNPL for B2B and payment by invoice
In e-commerce, it is important to respond to the customer’s needs. Especially in the current situation in the wake of COVID-19, giving your customers the option to buy now and pay later is more relevant than ever. 83% of German entrepreneurs see payment by invoice as the most important payment method for B2B purchases (DEU). But how can late payments be overcome? As a trader, you are dependent on liquidity. The uncertainty caused by the threat of non-payment makes payment by invoice a seemingly impractical payment method. Digital payment by invoice, where you get paid immediately, is the solution: You can grant your customers in the online store later payment terms and remain liquid and secure. Billie offers one such payment method, giving online merchants the freedom to run their business regardless of their customers' payment terms.
Are you ready to increase conversions in your B2B e-commerce store by offering your customers to pay by invoice? Then don't hesitate and contact us at info@billie.io or talk to our B2B experts directly: