“What’s the expected ROI on a B2B eCommerce solution?”
In deciding the right time, the right team or the right budget for a B2B eCommerce purchase and installation, there’s a lot to consider. Calculating the ROI on a new piece of technology can be a daunting task. That’s why we often recommend people calculate the cost of waiting to implement B2B eCommerce in their business. There are so many unnecessary costs associated with manual order entry that can be eliminated through a commerce solution. The longer you wait, the more money you’re wasting.
Here are 3 unexpected costs associated with waiting to implement B2B eCommerce:
1. Order Error Costs:
Until they implemented an online ordering solution, Turtle Wax was experiencing a 6% order error rate in their manual entry process. There are financial costs associated with order errors (time needed to re-enter the order; costs to re-ship the order; lost inventory; etc.) and non-financial costs (unhappy customers; slower-than-needed time to deliver; etc.). With their solution, they were able to decrease their order errors down to less than 1%, decreasing their costs, and thus increasing their revenue.
2. People Costs:
Let’s take an order that needs to go through a call-center as an example. How many and what types of employees generally touch that order:
- 1 Customer Service Rep entering the order
- 1 Customer Service Rep receiving the order and processing it
- 1 Fulfillment Rep tasked with fulfilling the order and getting it ready to ship
- 1 Shipping Rep
- 1 Finance/Billing Associate to handle billing and Accounts Receivable
- Total: 5 (and that’s being conservative)
Each of these employees cost the business money. From things like technology needs to HR training to yearly salaries, even if each employee is only spending a percentage of their day on these orders, it adds up fast.
3. Customization Costs:
What are the characteristics of your orders? Do you have static or dynamic products? If you currently sell a lot of dynamic products, or ones that allow for a lot of customization, you know that these types are orders are much more error prone and expensive to be processed. Without an online ordering solution, these orders would need to be taken over the phone, transcribed to a designer, implemented, and send back and forth with the customer a few times for review. With an online ordering solution, customers wanting to customize their orders will find that they can make edits right on the app, view proofs, and send them directly to fulfillment and shipping, speeding up the process and lowering administrative costs for the business.
Each day you wait to implement B2B eCommerce in your business, you are spending unnecessary money that could be reduced through order automation.