Category: B2B eCommerce

B2B eCommerce Platform KPIs

5 Critical B2B eCommerce Platform KPIs You Need to Consider

Do you have a B2B eCommerce marketplace platform? Are you looking for ways to know if your marketplace is moving in the right direction? 

There are specific metrics available that can help to measure your eCommerce store success. 

But, 

  • What does it mean by KPIs metrics in eCommerce? 
  • Which are the crucial metrics to measure the success of your eCommerce platform?
  • How do KPIs metrics help to improve the eCommerce store?

You will get answers to your all questions from this blog. To provide your consolidated information, we have talked to developers who have experience in creating B2B eCommerce solutions. With their help, we have listed down the most important metrics to make any eCommerce solution successful in the long run.

Let’s get started.

What Does It Mean by B2B eCommerce KPIs for Marketplace?

KPIs (Key Performance Indicators) are the important measurements to check the progress and success of your eCommerce business. Having access to the KPIs helps to know your platform’s weaknesses and strengths and where your eCommerce business is heading in the future. KPIs help you to track and monitor your business’s growth, sales, conversions, and conversion rate ratios. 

So, as you have a B2B eCommerce platform and its KPIs, know your specific platform goals. For example, you want to increase your monthly recurring revenue, increase customer retention rate, increase the number of orders, and lastly increase the overall conversion rate of your B2B software solution. Doing this will help to make your platform the best B2B eCommerce platform for your users in the market.

So as you know now, KPIs for B2B software solutions. Let’s understand the ways to identify KPIs.

How to Identify the KPIs for Your Business? 

To know the KPIs for your business, you have to ask several questions to yourself. Below are some questions to help you. 

  • What is the objective of your business?
  • What are the end goals you want to achieve with your eCommerce business?
  • What is the weakness of your eCommerce software solution?
  • What are the strengths of your eCommerce platform?

Answering the above questions will help you to know where you actually stand according to your goal and where you need to go in the future to achieve the goal. This way you will be able to take your team ahead as per your goal and motivate them to achieve the most. 

Moving further let’s look at some of the important KPIs of B2B eCommerce software solutions. 

5 Top B2B eCommerce Solutions KPIs to Measure in 2022

If you running an eCommerce marketplace platform, ensuring it gets successful is not that easy. Satisfying the dynamic needs of users, offering a proper user experience, and managing profits simultaneously is difficult. 

But, with the right actions by measuring KPIs, these problems can get sorted easily.

1. Customer Retention Rate on Your eCommerce Marketplace

This metric lets you know how many customers are repeatedly coming and purchasing products from your eCommerce business. In short, the CRR measures how long a customer stays loyal to your brand and how much time he/she continues to purchase from your business. Also, you can measure how many customers continuously left your brand within a certain time. This is known as the churn rate.

Here is a quick formula to help you find the churn rate percentage.

Churn rate = Total customers  – X no. of customers at end of month/ no. of customers at starting of month X 100 

CRR metric helps you know the overall performance of your eCommerce platform and lets you know how many average users are active on your eCommerce stores (daily/weekly/month). You can use the same formula to calculate the churn rate for weekly users. The churn rate helps you to know the average percentage of users who left your eCommerce store and how you can decrease your churn rate effectively.

2. Average Order Value of Your eCommerce Store

This metric helps you to know the average value a customer spends on your eCommerce platform to purchase a product or service. In short, an average order value that a customer spends. With this KPI, you are able to know if an individual is continuously spending a certain amount on your platform. In addition, you are able to know what is the average order value customers spend on your platform.

So, measuring this KPI helps you to know where you need to improve and how you can upsell your customers to make more purchases on your platform. Also, you can know if you are able to make upsell or cross-sells to potential customers of your eCommerce platform. This is possible when you bifurcate the customers on their spending and categorize them from higher spending to lower spending. So, the customers who spend higher on your platform are the potential ones.

3. Lost Carts or Abandonment Rate

This metric allows you to know the percentage of customers who add the item to the cart and left the store without making a purchase. So, you get an idea about items added to the card, the value of the cart, and how long they were on the platform. By this metric, you are able to predict that customers were interested to make the purchase but left the store somehow without making any purchase. 

However, you can make strategies to reduce your abandonment car rate and increase the sales lifecycle to make your store more profitable in the long run.

4. Reorder Rate 

With reorder rate KPI, you are able to know which products are being purchased by consumers the most. So, you can manage your store products according to and keep the extra stock of products that are high in demand during a certain period or season. 

With this metric, you can reduce the bounce rate of your eCommerce store and increase your consumers’ trust in the platform to make new purchases. Having the right amount of products in the store helps you increase the store purchase and profitable in the long run.

5. Return on Investment

The most important KPI of your eCommerce software solution. With this metric, you are able to know whether your eCommerce platform is profitable or not. If yes, then how much percent of profit do you get on a certain amount of investment. 

On the contrary, if no, then how much percent of loss you are facing from your eCommerce platform. This way, you are able to measure the money efficiency on your platform and how you can improve your eCommerce platform to make more profits. There are several ways through which you can measure your ROI.

ROI = Total Revenue Generated/Cost

With the following metric, you are able to know if the project is overall profitable or not.

CPI = Earned Value/Actual Cost

This metric allows you to know the difference between actual costing and the amount earned from the platform. 

CV = Budgeted Cost/Actual Cost

With the following metric, you are able to know the cost of acquiring a new consumer on your eCommerce platform. 

CAC = Overal cost of acquiring new customers/total number of customers obtained

Conclusion

To conclude this blog, B2B eCommerce KPIs play a vital role when you want to measure the success of your marketplace. Identify the KPIs of your marketplace and start measuring them. This will help you to improve your eCommerce store overall. 

As a leading B2B software solutions development company, we have developed over 2500+ eCommerce solutions for our customers. If you are looking to develop an eCommerce platform for your business, book a call with us. 

B2B eCommerce Trends

The B2B eCommerce Trends, Challenges & Opportunities

Through the amid of pandemic, every aspect of the business started to look for digital transformation. As a result, the eCommerce industry continues to evolve over the next few years.

In fact, the InsideIntelligence report shows that B2B sites sales will reach $1.77 trillion in 2022, a sharp 12% growth from the prior year, 2021.

Thus, B2B businesses have shifted their focus to online from the last few years. If you are online of them, looking to build your B2B eCommerce website, and want to get succeed. Read the entire blog post to get complete insight.

Being a leading eCommerce solution providing company in the USA, we will discuss eCommerce trends, challenges, and opportunities in this blog post. Let’s get started.

So, what are the major challenges in B2B eCommerce?

B2B eCommerce Challenges

Challenge 1: Maintaining B2B Client Relationships and Offering Personalised Store

B2B businesses get help from a healthy relationship with clients. Maintaining relationships with the clients leverages you a competitive advantage. If you have a healthy relationship with your client, it’s likely to make more and more purchases from your store.

On top of that, to build a strong relationship with your clients, it is essential to provide a good customer experience. That actually means providing fast delivery, customised storefront, easy-to-use tools within the store, and transparency of information with clients.

In addition, you can also provide personalised customer-specific pricing, catalogue, product selection option, and organised store to your client within your B2B website or app.

Read More : How Mobile Commerce helps you to Increase Sales and Customer Engagement?

Challenge 2: B2B Buying Process Involves Many Decisions Making

In B2B business, many people are involved with their respective opportunities. That includes people who are researching the stuff, stakeholders’ involvement when making any decision of purchase, user influencers to know whether it is the right product to purchase or not, and financial representatives for final decision making.

So, to keep up with all the responsibilities, you need to make your store effective for all these individuals. But, how can you ease this decision-making process and increase the chances of your product getting purchased? It is simple. You just need to provide different tools that make the job of a different individual easier. That includes integration of CRM and ERP solution that allows managing data at one stop.

Don’t Miss: Ways To Get Elected In The B2B Buying Process

Challenge 3: Providing a User-Friendly Experience on Platform

Providing a simple platform to your users is not that effective. Instead, you need to make your platform user-friendly, so buyers do not need to spend too much time just understanding the store.

You need to make your store user experience effective enough that buyers can easily find out products of their means. To do so, one of the options is you can even set up automatic purchase orders to restock.

B2B eCommerce Trends in 2022

1. Invest in the eCommerce Technology to Scale Up Your Business

When you are looking to convert your traditional business into an online business, start with the B2B eCommerce platform as it will serve as the center of your nervous system.

It is not necessary to have any defined eCommerce solution. Choosing an eCommerce solution depends on your needs. Hence, you get a facility to choose the best solution for your eCommerce as per your needs.

With modern eCommerce solution requirements, choosing MobiCommerce for your eCommerce business offers benefits to you. The benefits include features, security, a DIY layout editor, and customization.

Explore More: Why Manufacturers must think of eCommerce Investment and How One Can Scale its Sales Up

2. Online Marketplaces for B2B will Grow

Marketplaces are the stores that digitally connect buyers and sellers. For example, Amazon, eBay, Alibaba.com, Etsy are some of the top retail B2C marketplaces. As the sales of B2B eCommerce are growing, resulting in the growth of websites or marketplaces.

According to TechCrunch, B2B startups are going to be the next billion-dollar eCommerce startups. In the last year, 2021, B2B marketplaces sales grew by 130%, as per a report of Digital Commerce 360.

Therefore, B2B marketplaces will hold a strong position in the future. If you are looking to develop a B2B eCommerce software, then developing such marketplaces will benefit you.

Read More: Why Investing In The B2B Ecommerce Marketplace Technology Is Important For Manufacturers, Distributors And Wholesalers

3. B2B Brands will Focus on Increase Custom Retention Rate

In business, we all know acquiring a new customer is always expensive compared to an existing one. According to a study by Bain & Company, if you can increase your customer retention rate by 5%, you may get up to a 95% boost in your revenue. So, putting your efforts into retention customers is more viable than investing in new ones.

B2B business customer retention involves several things, such as limited customer pool, a longer period of the sales cycle, higher cost of acquisition, and results in higher sales value.

So, focus more on increasing your customer retention rate. For that, you can personalise pricing quotes, provide availability of different products, shorter delivery span, and offer a smooth user experience to your clients.

So far, we have discussed the challenges and trends of B2B eCommerce. Next, check the B2B opportunities.

Don’t Miss: Why Customer Engagement & Retention is Important for Businesses

B2B eCommerce Opportunities

Entering into the B2B eCommerce business offers you an immense market opportunity. For example, some of the best eCommerce platforms like Amazon Business or Alibaba acquire a huge market portion and generate revenue in millions of dollars. Alibaba has a total of 58.2% market share in China in B2B eCommerce. This number is massive. So, if you want to establish your B2B marketplace, take this opportunity by developing your custom B2B eCommerce app or web solution.

To get succeed in the B2B eCommerce business, you need to make your brand unique or provide a good customer experience to your clients. One of the examples to do so is, providing multiple online payment options to your clients. The traditional process of generating invoices involves complexity and might result in an error as well. Therefore, a customised payment and invoices system can surely benefit your business.

Looking to create an B2B eCommerce Website and Mobile Apps? Book a Call With Us

Conclusion
So, we hope you have got an understanding of B2B trends, challenges, and opportunities. B2B eCommerce industry will have huge growth. If you are looking to enter into the B2B eCommerce business, it is the right time for a custom eCommerce website and app development.
With the use of advanced features, it is easy to make a dynamic Magento mobile eCommerce app for your business. By this, you can enter into the eCommerce marketplace and start dealing with clients with ease.