Introduction
Because the #B2B audience or buyers have very different requirements than a# B2C consumer, #B2B businesses require a specially optimized #eCommerce store. It is critical to understand the major challenges of #B2B eCommerce and their solutions. Today, I'll talk about a critical issue that many #SMBs face: custom pricing strategy and its solution.
Please keep reading my post.
Inconsistent Pricing and Its solution
Pricing is probably the most difficult aspect of a #B2B eCommerce store to implement. Why? Because the relationship between a #B2B company and its buyers is unlike any other, and prices are never fixed. Despite the fact that most #B2B companies base their pricing structure on volume, that is not the only aspect considered.
The Challenges
Pricing Based on Customer
In terms of pricing, the biggest mistake you can make is to treat every customer equally. Indifferently treating first-time buyers and long-term customers can jeopardize your valuable business relationships. B2B eCommerce stores must ensure that long-term customers are rewarded in the form of discounts or other means.
Pricing Based on Volume
This is the most common pricing structure found on B2B eCommerce sites. The volume of purchases is the deciding factor here. When implementing bulk-deal pricing, you must encourage buyers to make large-volume purchases by offering discounts and other incentives based on the quantity ordered. Despite the fact that many B2B eCommerce stores implement this pricing feature, they frequently fail to set up automated pricing to the orders.
Pricing Based on Tier
Although similar to volume pricing, it is a more streamlined and adaptable form of pricing. In this case, the price is defined for a unit within a range, as opposed to volume pricing, which reduces the price when the order exceeds a certain threshold. Orders are classified into tiers based on the quantity range in which they fall. For example, if the first tier of 1-10 units costs $10, the next tier of 11-20 units costs only $7, and so on. Despite the simple logic, many B2B stores fail to create a fully functional pricing system based on the tier system.
The Solutions
Custom or Personalized Pricing
Implement a pricing logic with predefined rules that can manage the price displayed to the customer automatically. You can even incorporate the contract terms with your buyers to determine the custom pricing. This often involves grouping the buyers into different categories based on their buying patterns. Pair it with auto-applied discounts for long-term or return customers.
Volume Pricing
Volume pricing is popular in #B2B #eCommerce stores and is simple to implement in yours. Volume pricing allows companies to receive discounts on orders when they purchase a certain number of products or more. You can either use a standard plugin available on the market or customize it to meet your specific needs.
Multi-tiered Pricing
Many people believe that multi-tiered pricing is more appropriate for #B2B #eCommerce. Unlike volume pricing, which gives customers a discount when they place an order of a certain quantity, tiered pricing gives customers incentives to shop more. This means that the greater the order quantity, the greater the reward or discount, encouraging customers to purchase more from your B2B store.
Dynamic Pricing
Dynamic pricing allows you to charge customers higher prices when demand is high and vice versa. Although dynamic pricing is more difficult to implement in #B2B than in #B2C, the right #eCommerce partner can make all the difference.
Conclusion
All #B2B companies should understand and categorize their buyers' needs. It's critical to understand your buyers' pricing challenges and implement solutions that work best for your company.
In the preceding article, I attempted to highlight the majority of the pricing challenges that #B2B eCommerce businesses face today.
What pricing challenges have you faced in your business, and how did you overcome them?
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