Different Models of Pricing Strategy for B2B Commerce

Sector: Digital Commerce

Author: Nisarg Mehta

Date Published: 08/26/2024

Importance of Custom Pricing and Catalogs in B2B eCommerce

Contents

Tiered based pricing
Negotiated Contract Pricing
Promotional Pricing and Incentives
Tailored Catalogs

Custom pricing and tailored catalogs are crucial components of any B2B eCommerce business which enables a personalized and efficient purchase experience for the customers. In this blog we will explore different strategies to optimize these elements.

Tiered based pricing

Volume based pricing: Tiered pricing allows a business to offer different pricing levels based on their client’s purchasing volume. For example customers who place orders for large volumes get better discounts encouraging them to buy in bulk.
Customer Loyalty Tiers: Long time customers can be benefited from exclusive discounts to early access to new products. This strategy not just helps businesses to earn repeat orders but also builds a long lasting relationship with customers by making them feel valued.
Geo Location based pricing: Often businesses have location based pricing due to various state specific taxes, distribution network conditions and logistics needs these can be defined in the ecommerce system to ensure right pricing is applied when customer places orders.

Negotiated Contract Pricing

Unique Rates: Some clients negotiate special pricing based on factors like terms of the contract, purchase frequency and quantities or any special terms that they have agreed on. You can easily configure these special pricing in your eCommerce store to ensure correct pricing is applied and reduce pricing errors.
Dynamic Adjustments: Contract pricing many times needs to be adjusted dynamically in response to factors such as market conditions, commodity prices, or seasonal trends. B2B eCommerce platforms can automate these adjustments and ensure accurate and up to date pricing.

Promotional Pricing and Incentives

Limited time offers: A good b2b ecommerce platform will support time sensitive promotions such as seasonal sales or exclusive discounts allowing businesses to quickly adapt to market conditions and drive sales.
Bundling and Upselling: By offering bundling deals or targeted upsell suggestions, businesses can encourage customers to purchase complementary products and increase the average order size.

Tailored Catalogs

Just like custom pricing businesses needs to tailor their catalogs to meet the various customer requirements and in this section we will try to understand a few categories of tailored catalogs.

Industry Specific needs

Different industries have different needs and if you are a B2B manufacturer supplier for multiple industries you need to ensure that they can see the catalogs and products which are relevant to a specific industry only.

Geographical restrictions

Tailored catalogs can also account for geographical restrictions , you can opt to display the products that can be shipped to a client’s location or meet local regulations.

Client Preference and History

You can create custom catalogs based on client’s previous orders or their browsing history to make ordering princesses quick and easy for them.

Language and currency Localisation

While catering to multi-country customers, ecommerce platforms can offer content in client’s preferred language and display prices in their local currency to ensure a smooth and friction free transaction.

While the majority of the customization being available in leading eCommerce platforms like BigCommerce, Magneto, Shopify, implementing them correctly is crucial. Businesses that are able to implement their pricing correctly have experienced order values going up by 40% while their customer retention increased by 38%. Our team of eCommerce experts have helped major B2B customers with multiple rule based pricing to ace their eCommerce game. If you are also looking for help in putting your pricing strategy in automated mode, let’s talk.