Almost all online stores have long been accepting cashless payment. With one clarification – for individual buyers. There are many payment services which allow you to quickly connect a card payment. Everything is convenient for the buyer – fill in a few fields, press the “pay” button, fill in the card details. But non-cash sales to businesses have been a long story so far. Today we’re going to talk about how to make them as convenient as b2c sales. If you don’t sell to legal entities – maybe it’s time, against the backdrop of the crisis and falling sales, to start doing it. In this article, we’ll discuss B2B ecommerce payment methods.
Who should think again about b2b?
If you have a small online store, it does not mean that you have to give up b2b-sales. On the contrary. Many companies prefer to buy in small stores, because it is cheaper there. Some owners of Internet stores think: “I have a specific product, only physical persons will buy it”. Not taking into account the fact that companies often try to buy everything by non-cash, even gifts to employees to reduce the tax base.
Another case: a large manufacturer has Internet trade, and the company is ready to work with legal entities. But it has difficulties with the speed of transactions. After all, the b2b-contractors have to go through a security check, collecting a lot of documents for this purpose. But the essence of Internet commerce is speed and convenience. If a person wants to buy a box of chocolates, and he has to provide the director’s passport for this? – Is this a service?
Why does cashless payment become a stumbling block?
Many would like to sell more b2b – office furniture and building material stores, grocery ordering services and equipment retailers. But those plans get crushed by the complicated history of cashless payments. Let’s say a firm wants to buy a printer or printer paper from your online store. How does this happen?
A representative of the company calls your manager, discusses the details of the order with him. Manager draws up an invoice, the bill is paid – and only then the order is collected and shipped. The entire process can take 2-3 days, and on weekends or holidays to make corporate purchases at all impossible. And then there is no less nerve-racking process for both sellers and buyers – the provision of closing documents. Anyone can make a mistake. Internet-shop has to specially hire an accountant, so that he correctly documented the sale to legal entities. Often small online stores, because of such complications, prefer not to deal with sales to corporate customers. And in doing so they lose a large b2b sector. Let’s take a look at the main payment methods that can be used effectively in b2b right now.
What Are B2B Ecommerce Payments?
- Traditional trade credit. When a firm extends credit terms to its buyers; often (but not always) managed by a third-party.
- Purchase order.
- Paper checks.
- Cash on delivery.
- Credit card.
- Mobile wallets.
- Instant credit.