It is not uncommon for companies to expand selling channels and market to new demographics. For example, suppose a vendor sells primarily to consumers, but its products and services have value in a business environment. It would make sense for that company to branch out and incorporate B2B sales into its strategy. However, such a move must be done properly if companies are going to be successful by selling to both customer sets.
The Luxor Group - a seller of writing equipment - has begun selling its products to businesses as a way to complement its already successful consumer sales model. In fact, according to an article in the online publication My Digital FC, business sales have started to outpace consumer transactions.
Pooja Jain, executive director of Luxor Group, spoke with the news source about the success the company has experienced since reaching out to other businesses.
“B2B sales is an interesting segment for us," Jain said. "[Companies] from Nikon camera and Hero cycles to Horlicks can use a pen to go with their product as an offer. We also have been doing a lot of customization on our products according to the requirement of the client company.”
While Luxor has been successful selling to companies, that success can only be acheived if vendors take proper steps to ensure they are prepared to process B2B payments. For starters, accepting payments with level 3 data - including line item detail - will give companies the level of transperency they desire while also allowing vendors to save on processing fees. If this does not happen, vendors will not enjoy the full advantages of expanding their sales channels.
The transition is easier said than done, so companies must be careful before starting to sell to a new sector of the market. Working with a payment solutions provider can help vendors acquire the proper tools to assist with the initiative.