Hybrid Ecommerce Serves B2C and B2B

Direct-to-consumer brands that add wholesaling can benefit from a hybrid ecommerce platform, one that caters to consumers and businesses.

DTC companies manufacture their own products and typically begin selling directly to individuals. The websites are rich with product information and polices and procedures. Employees receive appropriate training.

But then the company enters the wholesale market. Its customers are humans placing occasional orders and businesses with a slew of new requirements.

These DTC brands have three options for ecommerce.

  • Establish separate B2C and B2B websites, supporting each with distinct data, product catalogs, and fulfillment practices.
  • Develop a headless or configurable ecommerce infrastructure that supports two sites — consumer and business —  from a single data source.
  • Transform the current consumer platform into a hybrid, serving businesses and consumers with one dynamic interface.

Hybrid Website

Each approach has merit, but the hybrid B2C and B2B option is likely the best choice for small and midsized merchants. The approach lets a brand use its existing website to add B2B ordering.

The hybrid site unifies the product catalog without much development. The company’s established fulfillment workflow can process B2B orders. Hence the hybrid model is easier and less expensive.

Screenshot of a hybrid product detail page selling wine.

This hybrid ecommerce site uses Shopify and SparkLayer, an integration app. When the B2B buyer logs in, the product detail page displays wholesale pricing.

5 Vital Features

Popular ecommerce platforms such as Shopify, BigCommerce, NetSuite, and others offer many third-party apps to transform a consumer ecommerce site into a functional hybrid in minutes.

Prominent apps include SparkLayer, Wholesale Gorilla, and Wholesale All in One. Each adds B2B ordering to a live consumer shop.

A hybrid storefront will do more than show discounted or tiered pricing. It will provide wholesale customers — distributors, other retailers — with five essential features.

Wholesale payments

A good B2C-B2B hybrid allows wholesale buyers to pay via invoice with approved terms. A recognized, account-holding purchasing agent can visit the site, log in, and place an order — without typing in a credit card number.

The agent could also pay with existing consumer options, such as a credit card, hosted payment services (Apple Pay, Amazon Pay, etcetera), PayPal, or even buy-now pay-later.

Custom discounts

B2B customers often negotiate unique pricing based on order volume and contract terms, for example. A hybrid site should offer custom pricing configurations that load seamlessly when a wholesale buyer logs in.

Done well, the implementation would:

  • Display unique pricing per SKU for logged-in B2B buyers.
  • Show automatic volume discounts that adjust as quantities increase.
  • Offer tiered pricing based on customer groups.
  • Enable B2B customer-specific promo codes.

Easy orders and reorders

A hybrid site will allow a wholesale buyer to place orders directly from a product detail page. The page will reflect the buyer’s pricing and package but is otherwise similar to consumers’ experiences.

Moreover, B2B buyers should be able to:

  • Order via an uploaded and formatted CSV file,
  • Order from a table-like product matrix,
  • Place one-click reorders,
  • Create automatically fulfilled offers on a schedule.
Screenshot of a product matrix

B2B buyers may upload a CSV order sheet or view a product matrix to place orders.

Account history

Every major ecommerce platform offers some form of account history, but B2B customers often require more in-depth information about orders and the overall agreement with the seller.

This expanding information typically includes:

  • Invoice status. Paid and past due invoices and the total outstanding balance.
  • Agreements. Payment terms and negotiated item prices.
  • Pricing history. Current, past, and future prices (for pending increases).
Screenshot of a B2B account page from SparkLayer

This example from SparkLayer shows a B2B account page.

Multiple users

A wholesale customer with retail outlets or distribution channels could have multiple buyers, marketers, receivers, and accountants needing access to account info. These individuals could share credentials, but it’s a much better experience to provide each with a unique account, role, and access.

For example, a receiver needs only to log in and track orders, not place orders or view payments.

DTC + B2B

A hybrid ecommerce site is a practical solution for DTC brands expanding into wholesale. The approach integrates B2B features into an existing B2C site to serve both individuals and businesses efficiently.

The result is reduced operational complexity and seamless experiences for all customer types.

Columbia Sales Team Fuels B2B Supplier

Shahzad Chagani runs operations for PE Energy, a Houston, Texas-based supplier of industrial equipment and supplies. The company collects leads online from worldwide B2B buyers and relies on its Columbia-based sales team to convert them into customers.

“Colombia is pretty Westernized,” Chagani told me. “We find a lot of college-educated talent there.”

In our recent conversation, Chagani addressed his backend setup for 100,000 SKUs, the benefits of an offshore sales staff, and more. The entire audio of our discussion is embedded below. The transcript is edited for length and clarity.

Eric Bandholz: Tell us who you are.

Shahzad Chagani: I’m the director of operations for PE Energy in Houston, Texas. We sell industrial equipment and supplies. I’ve been running the company for 10 years. About 80% of our revenue is B2B, with 15% via ecommerce.

We sell parts and equipment for manufacturing, construction, and other industrial uses. Our products weigh as little as one ounce to thousands of pounds. We specialize in American-made items. We have customers worldwide and our own inside sales team to serve them.

We carry about 100,000 SKUs. We don’t white label or make the products ourselves. We do a lot of dropshipping with our suppliers. We mainly specialize in consumable products for repeat orders, such as filters and lubrication. That’s where the highest margins are.

We have feeds from our suppliers that sync into our store, spec sheets, and inventory details. Our website drives a lot of inquiries. Buyers go to the site and then request a quote.

The site uses WordPress and Shopify. It mostly drives leads rather than direct purchases. We have a “request a quote” section on all product pages. We’ll receive those leads and arrange custom pricing depending on the buyer.

We use DataFeedWatch for our inventory control. There are several similar data feed providers. We maintain a single master inventory file that connects to QuickBooks Enterprise, our ERP. Whenever a product is sold or lead times change, DataFeedWatch updates our system — even on Amazon, eBay, and Shopify — to let customers know.

Bandholz: Walk us through your sales training for so many products.

Chagani: It comes down to education and product knowledge to respond meaningfully to quotes. It takes about 90 days to learn our system. All leads come through Zendesk. We have our own customized customer management platform. It has all the price sheets, weights, everything. It also provides allowable discounts depending on the quantities and customer type.

We have seven inside sales members. Most work full-time and are based in Colombia. I find them using LinkedIn Jobs. It’s nice to go back annually and bring everyone together for training. It makes customer service so much better.

They’re all working remotely from different cities in Colombia. The team makes deals on the phone, emails, or even WhatsApp. Our business is global; we communicate by any means necessary.

Colombia is pretty Westernized. We find a lot of college-educated talent there. Their English is awesome. I make sure. It has a big impact on our customers and vendors.

Our hiring process is this. We create a post on LinkedIn Jobs for Colombia. We link from the post to our site to fill out an application. If the applicant looks qualified, I’ll jump on a video call with that person.

People in Columbia and similar countries just want an opportunity.

Bandholz: How are they paid?

Chagani: They’re all hungry and money-driven. We have a commission structure. We use last year’s monthly numbers divided by the number of reps to ensure they hit our overall goal.

The commission for each person is tier-based. Higher tiers earn a higher commission. We pay a base of $7 to $8 per hour. I have reps hitting $2,000 to $6,000 per month on top of their base. They’re so good. Earning $72,000 per year in Colombia is phenomenal.

Bandholz: When do you know to hire a new sales rep?

Chagani: I look at the leads. If customers aren’t being cared for, I’ll find more talent. I keep the LinkedIn Jobs ad running 24/7 at a $4 per day spend.

Bandholz: Where can people follow you or reach out?

Chagani: Our site is PE-energy.com. I’m on LinkedIn and email.

Charts: U.S. Wholesale Trends Q3 2023

Every month the U.S. Census Bureau gathers data from domestic wholesale firms on sales and inventories. The “Monthly Wholesale Trade” survey includes wholesale merchants, distributors, exporters, and importers but excludes manufacturers, refiners, and miners selling their own products.

U.S. wholesale revenue in September 2023 (PDF) stood at $678.14 billion, up from $663.72 billion from the previous month and $671.79 billion in September 2022, an increase of 2.17% and 0.95%, respectively.

Per the Census Bureau, the info from the survey “offers business leaders and policymakers a current assessment of the nation’s economic status and plays a vital role in estimating the quarterly gross domestic product.”

U.S. wholesale Inventories for September 2023 were $901.81 billion, slightly higher than $900.27 billion in August and down from $912.42 billion one year ago.

Separately, every two weeks the Census Bureau conducts its “Business Trends and Outlook” survey gauging the broader state of the U.S. economy. The survey queries around 1.2 million companies on their performance, revenue changes, employment levels, working hours, operating status, demand trends, prices, and other factors.

The “Wholesale Trade” sector of the survey consists of (i) merchant wholesalers who sell goods on their own behalf and (ii) B2B electronic markets, agents, and brokers who facilitate sales and purchases for others.

According to the November 2023 data, wholesale businesses in the U.S. assessed their current performance thus far in 2023 as “growing,” although at a slightly slower pace than the previous month.

Although moderately higher than the previous month, revenue for U.S. wholesale businesses continues to decline as of November 2023.