From resistance to revenue: Selling your CFO on e-commerce

If you’re looking to stay competitive in today’s business environment, digital transformation is not optional. For many B2B businesses and enterprises, embracing e-commerce solutions can open doors to new opportunities for revenue growth, sales enablement and business scaling.

However, because B2B buyers have high expectations for B2B web stores today, these e-commerce projects require a lot of investment both in terms of time and resources.
It is this heavy investment that sometimes causes diligent budget owners to raise their eyebrows. It’s important that their concerns are addressed before continuing with a new e-commerce project.

Generally, CFOs and other finance officers cite concerns about the total cost of ownership (TCO) and return on investment (ROI) of a new or replacement B2B web store. In this blog, we’ll explore how CFOs can overcome these concerns and start seeing just how much value the right e-commerce solution can bring to your B2B organization.

Common causes of cost drivers in B2B e-commerce

When a B2B e-commerce project runs over its budget, there are a few usual suspects that you can easily avoid if you know what to look for.

Scope creep

One of the primary reasons for budget overruns in B2B e-commerce projects (and any type of software implementation) is scope creep. Scope creep occurs when there are continuous additions or changes to the project’s requirements and features beyond the original scope defined in the project plan.

As stakeholders request new functionalities or modifications during the development process, it can lead to increased development time, additional resources, and higher costs.
It’s important to choose a solution that has as many out-of-the-box features that fit your needs as possible. Keep an eye out for e-commerce solutions that have a B2C-bias. These will often include features for B2C use cases that you don’t need and will be missing essential features needed for B2B sales. This will be essential to keeping your scope narrow enough to prevent your costs from soaring.

Interfacing challenges

B2B e-commerce projects often involve situating the new e-commerce software next to various existing systems like ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), inventory management, and logistics.

However, only a few B2B e-commerce solutions truly integrate with your tech stack. True integration will cut down on costs over time because it means your web store will never break its connection with your most important business software.

However, any lesser forms of “integration” such as interfaced solutions or third-party connectors used in mainstream e-commerce will increase costs over time. Their looser integrations introduce more potential points of failure that will lead to costly order errors, downtime and maintenance.

Extended maintenance

Speaking of maintenance, this is where the true cost of B2B e-commerce reveals itself. In a perfect world, after you’ve gone live with your B2B web store, it shouldn’t have any downtime.

Unfortunately, when you find yourself with a malfunctioning web store because of issues that spring from a broken connector or inaccurate data, you more-often-than-not have to spend your way out of trouble.

This type of continuous maintenance spending can drive the TCO up and mitigate any revenue growth you could have expected from the launch of your B2B web store. This is why the project and delivery stage of setting up your store is so vital.

Capital expenditures vs. operational expenses

One of the primary concerns of finance officers is the perceived high TCO associated with B2B e-commerce projects. But this view may not fully capture the long-term cost-effectiveness of ERP-integrated e-commerce solutions. Unlike mainstream e-commerce projects, ERP-integrated e-commerce significantly reduces capital expenditures (CAPEX) by shifting the major costs to operational expenses (OPEX). This transformation makes e-commerce a worthwhile, long-term investment.

With OPEX, the costs are spread over time and are typically more predictable and manageable. Instead of a large one-time investment, businesses pay a recurring fee that aligns with their usage and requirements. This allows companies to budget and plan their expenses more effectively, as they can forecast ongoing operational costs related to the e-commerce platform.

Additionally, the OPEX model is highly scalable, enabling businesses to adjust resources and costs based on their needs as they grow or face changes in demand.

Moto Direct kept TCO low with integrated e-commerce

Take the success story of Moto Direct, a company that opted for an ERP-integrated web store. By embracing this solution, they managed to reduce their TCO by an impressive 27% when compared to their previous mainstream e-commerce solution.

The stable native integration gave their web store the boost it needed to help increase their online export orders by 400%. They no longer had to invest in middleware to maintain the connection between their web store and ERP.

Moto Direct’s story showcases that when implemented correctly, B2B e-commerce can lead to substantial cost savings and improved efficiency.

Shortening Time-to-Value

One of the key advantages of an out-of-the-box B2B e-commerce solution is its ability to provide a wide array of features with immediate value. This feature-rich environment translates to a shorter deal-to-live time, enabling businesses to start reaping returns on their investments quickly.

Shortening the time-to-value enhances the overall ROI of the e-commerce project and minimizes any initial impact on the bottom line. It’s a common concern for CFOs that the software they sign off on be value-added as quickly as possible.

Elevating Customer Experience

Your customers have a lot of choice when it comes to B2B suppliers. That’s why customer experience is a crucial factor that can significantly impact the success of your business’ B2B e-commerce project. The mission of your B2B e-commerce solution should empower you to provide a seamless, user-friendly experience to their customers, enhancing customer satisfaction and loyalty.

B2B buyers have a different set of needs than their B2C counterparts and it’s vital that these needs are catered to in their online buying experience. For example, order quote functionality and specific customer pricing agreements should all be available in the web store. Choosing a solution that has these features standard will go a long way in contributing to its cost efficiency.

By using a well-integrated and intuitive e-commerce platform, businesses can streamline ordering processes, personalize customer interactions, and deliver real-time inventory and pricing information. A positive customer experience not only translates to increased sales but also helps boost customer retention and long-term loyalty, enhancing the overall ROI of the e-commerce project.

Embracing Scalability and Flexibility

Scaling your business is exciting and full of opportunities for you and your team. However, from the CFO’s perspective, scaling operations can be a cumbersome and costly process. Integrated B2B e-commerce solutions offer unparalleled scalability and flexibility that lessens some of the cost burden.

The B2B web store should be able to easily adapt and accommodate higher order volumes, expanding product catalogs, and serving a broader customer base. Integration makes this even easier by auto-populating all the necessary information from your ERP or PIM into the web store.

The ability to scale operations without the need for significant additional investments allows businesses to remain agile and respond swiftly to market demands. This adaptability contributes to enhanced ROI over time and positions your company for sustainable growth.

B2B e-commerce should break barriers, not banks

While CFOs may naturally have concerns about the TCO and ROI of new or replacement B2B e-commerce solutions, it’s essential to understand the long-term benefits and advantages these platforms offer.

ERP-integrated e-commerce solutions can lead to substantial cost savings, provide a faster time-to-value, elevate customer experiences, and offer scalability and flexibility for future growth.

It’s the best way to guarantee the long-term financial health of the business. CFOs can be encouraged to embrace e-commerce projects as strategic investments that will positively impact the bottom line and ensure their company’s relevance in the years to come.