How COVID-19 has changed trade sales forever
Photo by Dan Burton on Unsplash
It’s April 2020 and the UK is a few weeks deep into the first national lockdown. As the bustling on-trade ground to a halt, the volume of orders through Sellar dropped dramatically. Many of our partners had just lost their most important revenue stream and we were left wondering what would happen to our industry.
After the initial shock set in, we began to adjust and adapt to the new normal. People were forced to stay in their homes and to go online to do their shopping — some for the first time.
By May 2020, global e-commerce had already benefited from an explosive 77% increase in sales and U.S. e-commerce penetration experienced a mindblowing 10 years worth of growth in just 90 days.
Research from McKinsey & Company recently found that more than 75% of B2B buyers and sellers say they now prefer digital self-serve ordering and remote human engagement, a sentiment that has steadily intensified even after lockdowns have ended.
As well as increased personal safety, buyers have quickly realised it is easier to get information and place orders online while also enjoying the benefits of speed and convenience.
Sellar data confirms this trend with a +30% month on month increase in adoption from trade buyers and suppliers.
2) Excellent customer experience is essential
In an industry with high levels of competition and choice for trade buyers, making it as easy as possible for customers to quickly navigate your product range, get information, and make an order is essential.
A key distinction when building high-quality digital experiences is to remember that technology is no replacement for personal relationships. We saw this first hand in Sellar, where the in-app messaging feature racked up thousands of messages in the first two weeks!
Additional data from buyer feedback shows that dealing directly with suppliers is one of the primary reasons for using Sellar over other digital ordering tools. This highlights the sentiment that buyers want to maintain the connection they have with their suppliers, even through the use of digital tools.
Suppliers that can foster strong personal relationships and deliver quality digital experiences are seeing the greatest returns. Data from Sellar has shown an average 86% re-order rate from first use, highlighting this stickiness.
3) B2B marketplaces continue to increase in popularity
Sellar discovery tool for trade buyers
The growing popularity of B2B marketplaces makes them an important go-to-market strategy for businesses of all sizes. According to a recent study by market researched WBR Insights, 87% of B2B buyers purchase through online marketplaces with predictions by Gartner that up to 75% of all B2B procurement will be done through online marketplaces within the next 5 years.
This fast accelerating trend is being driven by two key reasons:
Convenience: buyers can order from multiple suppliers in one place.
A shifting demographic of trade buyers: Millennials are digital savvy and have a strong influence on how they operate from the marketplace platforms they use in their personal lives.
One of the main pitfalls to look out for from certain marketplaces in the drinks industry is how customer data is shared. Be aware of marketplaces that stand in the way between your brand and the customer, preventing you from making a connection and building fruitful, long-term relationships.
Payments evolution
As trade sales move online, there’s more opportunity than ever for innovation in payments and to provide customers with slicker, more convenient ways to pay for their orders.
While traditional POs (purchase orders) have worked for some time, this type of payment method often carries many drawbacks. Slow or late payment can impact the supplier’s cash flow and may require human resources to monitor and follow-up with customers about outstanding invoices.
With a digital ordering experience, it’s possible to offer a much wider range of payment options that can be integrated directly into the checkout process, making the experience faster and ultimately more seamless for your customers. Proprietary data from Sellar has shown that since introducing SellarPay into the platform, the number of online payments going SellarPay has increased by over 400% since July, with 60% adoption from the suppliers on Sellar at the time of writing.
Trade sales will continue to undergo transformations in 2021 as businesses adopt the latest technologies to find new customers, improve their supply-chain efficiencies, and upgrade the user experience offering to their customers.
At Sellar, we’re excited to be playing a part in reshaping the future of direct trade and help usher along these technological shifts.
If you’re a supplier looking for a digital solution to grow and manage your direct trade sales, head over to the Sellar website where you can learn more and apply to join. If you’re a trade buyer, you can register here for a free trade buyer account where you can start discovering and connecting directly with the best independent suppliers!