In the rapidly evolving landscape of B2B commerce, businesses are increasingly recognizing the need to modernize their operations to remain competitive. The concept of composable commerce has emerged as a transformative approach, allowing businesses to build tailored e-commerce solutions by integrating best-of-breed technologies. In a recent podcast conversation, Chad Solomonson hosted Lance Owide, General Manager of B2B at BigCommerce, who shared valuable insights into the modern B2B landscape and the role of composable commerce in driving growth and efficiency. Listen to the full episode of the podcast here.
The Shift Towards eCommerce in B2B
Lance Owide's journey into the world of B2B commerce is a testament to the significant shifts occurring in this space. With only about 15% of B2B transactions happening online as of three years ago, there is immense potential for growth. Projections suggest that this figure will double or triple in the coming years. For businesses that have yet to embrace e-commerce, the urgency to modernize is clear. As Owide points out, approximately 40% of B2B companies in the U.S. are still not transacting online, indicating a vast opportunity for those willing to adapt.
Understanding Composable Commerce
At the heart of modernizing B2B operations is the idea of composable commerce. This approach enables businesses to select and integrate various technologies tailored to their unique needs. BigCommerce has positioned itself as a key player in this space, promoting the use of open APIs and microservices to facilitate seamless integration. The recently launched Catalyst, a Next.js reference architecture, exemplifies BigCommerce's commitment to simplifying the creation of headless stores, allowing businesses to respond swiftly to changing market demands.
Owide emphasizes that the complexity of B2B transactions necessitates this flexibility. Unlike B2C, where the buyer journey is often straightforward, B2B transactions involve intricate workflows, multiple systems, and varying buyer requirements. Composable commerce allows organizations to create customized experiences by integrating specific technologies that cater to their unique operational needs.
Speed to Market: A Critical Factor
One of the most compelling advantages of adopting a composable commerce strategy is the speed to market it offers. In today's fast-paced environment, businesses cannot afford lengthy implementation timelines. Owide highlights that traditional e-commerce projects often take six months to plan and over a year to implement. However, with composable commerce and tools like Catalyst, businesses can launch new sites in a matter of weeks, drastically reducing time-to-market.
This agility is particularly crucial as buyer demands continue to evolve rapidly. Companies must be able to pivot and adapt to new technologies and market trends, especially with the rise of artificial intelligence and other innovations. Owide cites a recent success story of a lighting distributor that went live on BigCommerce's Catalyst in just three weeks, showcasing the potential for rapid deployment and immediate ROI.
Overcoming Integration Challenges
While the benefits of composable commerce are clear, businesses must also navigate integration challenges. Owide stresses the importance of a phased approach to implementation, particularly in the B2B sector. Many organizations can become overwhelmed by the complexity of their requirements, leading to delays and frustration. Instead of attempting to build a comprehensive solution from day one, businesses should focus on moving simpler, high-revenue transactions online first.
BigCommerce encourages a "crawl, walk, run" methodology, allowing companies to gradually build their e-commerce capabilities. This approach not only mitigates risks but also frees up sales teams to focus on nurturing more complex customer relationships. Owide notes that the key to success lies in aligning technology and sales teams early in the process, ensuring that everyone is on the same page regarding business requirements and expected outcomes.
The Emerging Landscape of B2B Commerce
As businesses modernize their operations, certain sectors are leading the charge in adopting composable commerce strategies. Industries such as automotive and building materials are witnessing a surge in online transactions. For example, MKM Building Supplies, a UK-based company, has successfully implemented a headless e-commerce solution that allows customers to access personalized search and streamlined invoicing processes.
These advancements are not merely about enhancing e-commerce capabilities; they are about creating a seamless and engaging buyer experience. Owide highlights the importance of personalized search functionalities, which adapt to customer preferences and previous purchases. By leveraging data and technology, businesses can create tailored experiences that resonate with their customers, ultimately driving higher conversion rates and customer loyalty.
The Future of B2B Commerce
Looking ahead, Owide is optimistic about the future of B2B commerce. He envisions a democratization of e-commerce tools, making them accessible to mid-market businesses that previously could not afford sophisticated solutions. BigCommerce's B2B buyer portal, developed from extensive customer feedback, exemplifies this shift, providing mid-market companies with access to essential functionalities, such as approval workflows and invoicing portals.
On the enterprise side, customizability will play a pivotal role in shaping the future of B2B commerce. As businesses seek to differentiate themselves, having the ability to create bespoke solutions tailored to their specific needs will be paramount. Owide cites an example of a leading golf brand that is leveraging BigCommerce to build a unique user interface for customizing golf club sets, showcasing the power of tailored solutions in enhancing customer experiences.
Conclusion
The journey towards modernizing B2B commerce is well underway, and composable commerce is at the forefront of this transformation. By embracing flexible, integrated solutions, businesses can enhance their operational efficiency, accelerate time-to-market, and ultimately deliver superior customer experiences. As Lance Owide aptly puts it, the future of B2B commerce is not just about keeping pace with change; it's about leveraging technology to drive innovation and growth. For businesses willing to adapt, the fast track to composable commerce offers a promising path forward in an increasingly digital world.
