How a platform built for B2C can damage your bottom line...
Every day, manufacturers and distributors face increasing pressure to provide more powerful digital customer experiences. For most companies, the way forward is a solid B2B digital commerce platform. But the needs of B2B companies can't be met with just any ecommerce solution. Complex decision-making, large transactions, diverse stakeholders, and long sales cycles put B2B commerce in a different league altogether.
In 2024, researchers cited data in one of the first peer-reviewed studies comparing the needs of B2B commerce against those of B2C organizations, stating: "Unlike B2C commerce, B2B commerce involves longer decision-making cycles, more complex procurement processes, and multi-layered organizational hierarchies, which create additional technological and strategic challenges."
Solutions that aren't purpose-built for B2B require costly customizations to meet these needs—often imperfectly, if they ever do. And the stakes continue to rise. Analysts at Gartner predict that in 2025, 80% of B2B sales interactions between suppliers and buyers will occur in digital channels.
Yet the allure of B2C platforms like Shopify and BigCommerce continues to grow. As innovation from major players like Adobe, SAP and Salesforce wanes, these B2C platforms are aggressively marketing B2B capabilities that aren't fully functional. If B2B organizations believe these promises, they could soon be facing hidden expenses or, even worse, lost opportunities.
Thinking about choosing Shopify, BigCommerce, or another B2C-based solution for your B2B business? Here are five hidden (and substantial) costs to consider.
1. Significantly higher Total Cost of Ownership (TCO)
According to experts at the Boston Consulting Group, choosing purpose-built B2B platforms over B2C solutions can reduce costs by 20-35% for important aspects of digital commerce like order processing.
This is largely due to the enormous number of customizations required to retrofit B2C platforms for complex B2B commerce environments. Additional expenses that contribute to higher TCO for a poor-fitting B2C solution include higher administrative overhead, additional (and often manual) maintenance, and constant tweaks to ensure even basic functionality stays on track.
Implementation times can be significantly longer as well, due to the need for extensive customization. One Gartner study reported that organizations with a composable approach to their enterprise applications outpace competition by 80% in the speed of new feature implementation.