Competing against the big name providers can be difficult, particularly in the retail industry. When a Walmart moves into a small town, the local small businesses tend to suffer. Only those that implement strategies geared at providing unique services to customers are in the best position to keep up with larger competitors. The same can be said online.
For years, Amazon has served as the primary online retailer for consumers, and now the eCommerce giant has begun shifting its business to the B2B sales market. According to a study from the Acquity Group, 45 percent of companies surveyed have used Amazon Supply to make purchases. While this service can help buyers find various providers of goods they need for their business, it can impact the earning potential of these vendors.
Robert Barr, Senior Vice President at Acquity Group, spoke about the findings in a recent press release.
"B2B suppliers must be aware of the revenue threat from the third-party B2B eCommerce websites," Barr said. "This is particularly important since many buyers do not visit suppliers' physical stores, but rely on catalogs and websites to research products. Unfortunately, many of supplier's websites are outdated and lack capabilities to meet customer expectations."
To counter this issue, it's important for providers to equip themselves with the tools needed to offer exceptional service to their customers. For example, attaining PCI compliance is of the utmost importance. Additionally, it's crucial for merchants to ensure they are doing whatever they can to maximize the value of each transaction to alleviate any pains they might experience due to lost revenue. Processing Level 3 data will help ensure that they pay the lowest possible interchange rate, assisting with profitability.
Working with a B2B payments consultant can help vendors obtain solutions needed to stay competitive in an online marketplace dominated by the likes of Amazon.