Business-to-business (B2B) sellers are out of step with B2B purchasers in the growing e-commerce sector, a new Visa Canada study shows.
The study, entitled How Business Sells, reveals e-commerce B2B selling will increase from eight to 30 per cent of total B2B sales by 2005, while the level of in-person and phone selling will decline from 70 per cent to 57 per cent in the same period.
But 72 per cent of B2B selling professionals say they prefer selling through traditional channels, in-person and over the phone rather than electronically, because traditional channels enable them to build and maintain personal relationships with customers.
The Visa Canada study findings indicate that the transition to electronics is, in part, driven by pressure from the B2B buying side. A previous Visa study (How Business Buys) indicates the Canadian purchasing industry anticipates placing 37 per cent of its orders through e-commerce channels by 2005, compared to nine per cent today.
The study also shows that buyers expect in-person and phone ordering to decline, accounting for 39 per cent of their ordering activity by 2005 compared to 53 per cent today.
Sales professionals’ preference for in-person selling is reflected in their use of company websites.
Only six per cent of the companies surveyed sell through websites; 22 per cent do not even have a website.
Respondents explained their limited use of websites by citing the difficulties of customized selling and discussing complex products online.
This puts sellers out of step with purchasers, 22 per cent of whom now buy through websites.
“The findings point to some interesting challenges for both sides of the B2B market in Canada,” said Jacqui Hurd, senior manager, commercial card products, Visa Canada.
“Sellers have to adjust to the fact that their customers are pushing for the efficiencies that electronic ordering provides them while finding ways to maintain the personal contact that underpins successful selling.”
