B2B omnichannel ecommerce is surging to new heights, bringing new urgency for companies to move far beyond traditional in-person sales with a mix of self-service digital commerce, live chat and several other forms of online commerce, management consulting firm McKinsey & Co. says in a new report.

Many B2B companies are already increasing investments in omnichannel technology and operations, but McKinsey says those who aren’t stand to fall far behind.

“Companies are putting more money into ecommerce,” the management consulting firm says in its ninth annual B2B Pulse Survey, which surveyed 3,942 B2B decision makers across the United States and 12 other countries. “One-third of all our respondents have increased investment by 11% or more.”

McKinsey says omnichannel is a crucial strategy

But McKinsey is quick to warn that omnichannel ecommerce is not just a nice-to-have strategy.

“Those in B2B sales who think it’s optional to invest more in ecommerce are mistaken,” it says in the report, which was authored by McKinsey partners Candace Lun Plotkin, Jennifer Stanley and Liz Harrison and associate partner Victor Garcia de la Torre.

“The investment in ecommerce is paying off,” the report adds. “Results show that buyers’ comfort with remote and self-service spending has leaped in 2024, especially for orders worth $500,000 or more. Even buyers in sectors such as medical technology, where ecommerce has historically been slower to take off, are more comfortable than in the past.”

The report asserts that omnichannel ecommerce has “become the leading sales channel in revenue generation, usage, effectiveness, and investment. Since last year, ecommerce has dethroned in-person sales as the top revenue-generating channel among organizations that offer ecommerce as a purchasing channel.”

McKinsey notes that B2B commerce revenue is divided into thirds: self-service digital commerce, remote online transactions with sales reps, and in-person sales. The report refers to omnichannel ecommerce is the combination of self-serve digital commerce and the multiple forms of remote transactions with reps, including email, mobile apps, live chat and video conferences.

McKinsey says omnichannel is here to stay but many B2B companies still lack ecommerce

“What I found most notable in this report was the true cementing of some of the trends we’ve seen over the last few years,” report co-author Liz Harrison said in a reply to Digital Commerce 360. “Omnichannel is here to stay and the rule of thirds rules all (a combination of in-person interactions, remote communications, and digital self-serve).

“After surveying 30,000+ people over the last decade, we understand what’s driving B2B growth and how the winners stay ahead by offering an omnichannel experience, being responsive to customers’ needs in terms of how and when they interact and leveraging analytics to personalize content.

“One more surprising finding is that only 75% of B2B companies offer ecommerce, despite all the data supporting its business potential.”

McKinsey cites demand for integrated omnichannel commerce

The report asserts that it’s crucial for B2B sellers to provide a “cohesive, integrated omnichannel experience.

“Customers don’t want a mere variety of multiple channels; they want a true omnichannel sales experience that feels smooth, curated, and orchestrated to meet their specific needs.”

The report cites a trend over the last two years of B2B buyers showing a sharply increased willingness to place high-value orders through self-service digital commerce and remote online connections with sales reps:

⦁ 73% of B2B buyers, up from 59% two years ago, are willing to spend over $50,000 per order.

⦁ 39% of B2B buyers, up from 28%, are willing to spend over $500,000 per order.

⦁ 20% of B2B buyers, up from 15%, are willing to spend over $1 million per order.

Regarding B2B sellers, the report’s statistics also include:

⦁ 71% of respondents sell through at least one form of B2B ecommerce.

⦁ B2B online sales through self-service digital commerce and remote online connections with sales reps account for 34% of revenue.

⦁ For the fourth consecutive year, B2B companies that that sell online ranked ecommerce as their most effective channel.

⦁ In-person sales generated 17% of revenue, down from 22% two years ago.

“Ecommerce is the backbone of the omnichannel strategy,” McKinsey offers as a takeaway from the report. “With customer preferences shifting year over year, it’s now undeniable that ecommerce is a magnet channel in B2B sales. Ecommerce has moved from being a minor investment in a  company’s [go-to-market] plan to being the cornerstone of a successful omnichannel strategy and a driver of revenue growth.”

Q&A with McKinsey partner Liz Harrison:

DC360 engaged McKinsey in a Q&A dialogue about the B2B Pulse Survey, for which Harrison provided the following answers:

DC360: Regarding the thirds rule, what, if anything, will make self-serv ecommerce go beyond 1/3 as a preferred channel?

Liz Harrison: While we don’t see anything breaking the rule of thirds in the near term, there could be factors that increase self-service in the future. Improvements in AI could allow for less reliance on sales representatives and could be an early driver of self-service. One of the main reasons we rarely see fully self-service options is that there is still a desire to negotiate with a person face-to-face. As AI and other machine learning advances in the future, this could change. Post-sale service (when you need help or need someone onsite) will likely take the longest to see self-service increases because of the personal 1:1 nature of it.

The rule of thirds is here to stay, but the parts of the buyer journey that would see changes the fastest go from upfront research, followed by purchase, and post-sale service last.

Can you say more about why ecommerce is the top revenue generator among companies that offer it?

Most customers want a fast and easy option, so it’s no shock that when it comes to putting the item in your cart and making the purchase, ecommerce is the most common purchase method among companies offering it. However, the success of ecommerce is supported by customers’ ability to interact with someone in-person or via video in other stages. All of these element’s work in harmony — the speed and convenience and the ability to connect with a person if needed. Contrary to what some may believe, self-service isn’t just for low-ticket items. We are also seeing large, expensive items frequently purchased online. Customers’ comfort with remote and self-serve spending has actually jumped, notably for orders of more than $500,000.

Over time, there has been greater comfort with self-service, so therefore a greater comfort with spending more.

Can you say more about why buyers are more comfortable with orders over $500,000 –- and what type of orders these tend to be re types of products, No. of items per order, etc.

It’s difficult to bucketize online orders into a single type, and the number of items per order is also varied. What I can say is that we’ve seen prescription or recurring orders are especially well-suited for ecommerce as they offer customers’ ease in their day-to-day routine.

How are suppliers reacting in relation to trends for B2B buyers to be more willing to switch suppliers?

B2B customers have had a tendency to explore other suppliers more so than we’ve seen in past years. That said, this has been trending since the pandemic (vs. a specific spike in 2024). More than ever, organizations are taking extra precaution and proactive steps to help prevent their customers switching suppliers. They’re taking a closer look at things like order frequency, number of service calls, overall performance, etc., to predict such switches. And because companies are building out these toolkits, they are armed with the information to proactively reach out to their customers to try to mitigate and get ahead of any losses.

What are some good examples of companies increasing sales/revenue through multi-location work environments?

Ideally, a workforce would emulate the same type of hybrid flexibility that their customers prefer. For example, we know that customers want the rule of thirds and that they want in-person and remote self-service in equal measure all the time. So, this context gives us the ideal setting for how sellers need to be situated — with the ability to visit their customers in person, the ability to connect from a remote setting, and all the while ensuring they’re closely connected to their internal team so that all the channels are interconnected.

B2B decision makers are requiring flexibility, and the companies that emulate that flexibility are finding the most success. And the proof is in the findings — companies with hybrid work environments are more successful than those whose employees spend four or five days per week in a single location. 35% of respondents from hybrid companies say their company achieved greater than 10% growth over the previous year, compared with 28% of non-hybrid companies.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].

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