500 business buyers from a range of industries across the UK and the EU took part in the survey developed by Hokodo and several partners. Key findings include:
- 83% of B2B buyers will abandon an e-commerce purchase if no payment terms are offered
- 79% of buyers say access to payment terms is critical for the success of their business in 2024
- 86% of buyers agree that access to payment terms is an important consideration when choosing a supplier
- Payment terms among top 3 most important things B2B buyers look for when choosing a supplier
Hokodo, the B2B eCommerce Association, OroCommerce and Greenwood Consulting have released a joint report that explores the habits and e-commerce expectations of business buyers.
The report found that payment terms are a non-negotiable requirement for more than 8 out of 10 B2B buyers, as a staggering 83% of respondents said that they will abandon an e-commerce purchase if no payment terms are offered at checkout. This shows that merchants and marketplaces that are failing to offer payment terms are missing out on swathes of potential buyers. However, the report identifies three barriers that may prevent B2B merchants and marketplaces from offering trade credit.
Firstly, offering trade credit online can be a risk as the anonymity and scale of e-commerce means that it can be challenging to determine which buyers can be trusted to stick to their payment terms. Secondly, offering trade credit online can be complex – from credit scoring and fraud detection to payment processing, insurance and collections, offering trade credit comes with a lot of moving parts. Thirdly, trade credit can put pressure on cash flow when merchants are offering it off their own balance sheet.
However, it’s essential that B2B merchants and marketplaces find a solution to overcome these challenges in order to retain customers and entice new ones. 86% of buyers surveyed agree that access to payment terms is an important consideration when choosing a vendor or supplier. In fact, access to payment terms was placed in the top 3 most important things B2B buyers look for when choosing a supplier, alongside quality of product and delivery speed.
Alongside original data points and analysis, the report makes a number of recommendations that B2B sellers can implement in order to improve their checkout and user experience, to reduce the number of customers being lost due to an inadequate offering.
Louis Carbonnier, Co-founder and President of Hokodo said:
“B2B merchants and marketplaces are struggling to deliver the e-commerce experience that buyers expect. The findings of our report highlight the challenges faced by e-commerce buyers, and provide sellers with essential guidance needed to improve their service. 79% of buyers said that payment terms are critical for the success of their business this year, so this isn’t something that sellers can afford to ignore. It’s never been more crucial to provide seamless digital experiences in B2B.”
Christopher Gee, UK Chapter Lead of the B2B eCommerce Association said:
“Choosing to collaborate with Hokodo on this research was an easy decision to make. A seamless online payment journey is not simply a ‘nice-to-have’ for B2B buyers but a critical factor when choosing and reviewing a supplier. Offering a combination of easy-to-use payment terms and relevant settlement methods is essential for maintaining loyal customers.”
