According to the Bureau of Labor Statistics, inflation in the U.S. is at its highest level in over 40 years. Across the country, everyday essentials such as gasoline, food and housing are rapidly rising in price.
The quality of life for the everyday citizen has taken a hit with the rapid price increase of goods due to inflation. In order to stay afloat, these buyers are spending more time shopping before buying to search for the lowest prices and best deals on their essentials. This trend is prevalent in the B2B buying world as well, as companies struggle to balance their purchasing approvals with today's rising cost of materials and services.
Since buyers are now extra cautious with their spending, companies must navigate the challenges of staying competitive and engaging with their customers by offering favorable prices, but at the same time, companies must ensure their business won’t be damaged by inflation in the process.
B2B companies specifically are facing challenges associated with rising costs in raw material, labor and logistics. They face the dilemma of raising their prices to stay in business, or keeping prices competitive so they don’t lose their buyers.
So what can today’s distributors do to overcome this predicament?
The answer can be found in a variety of B2B consumer research studies which have shown that consumers are still shopping on Amazon despite inflation. Consumers in B2C and B2B want a shopping experience that provides them with a greater selection of products in one location. Online marketplaces allow shoppers to find complementary products at a lower price without having to shop elsewhere for a better deal.
B2B brands and distributors struggling with rising costs should innovate their E-commerce for long-term growth by launching an online marketplace. This way, companies can increase their customer base and expand product selection without having to invest in additional inventory or warehouse space.