In the dynamic realm of B2B online trade, the year 2023 has undeniably been marked by a whirlwind of innovation and transformation. Noteworthy industry players such as GE Renewable Energy, Shopify, Walmart Business, and Amazon Business have made significant strides in their B2B strategies, emphasizing the accelerated pace of change. Amid this landscape, digital commerce has transcended mere rhetoric, manifesting as a tangible and immediate business strategy—a departure from the distant 10-year plans of yesteryear. 

For food distributors and brands, the relentless pursuit of digital transformation is palpable. Conversations have shifted from hypothetical futures to the practical implementation of B2B ecommerce as a crucial business strategy. Amidst this landscape, Balance, a leading digital payment platform, has unveiled its new suite of products meticulously designed to address the entire B2B transaction lifecycle.

The year 2023 witnessed a discernible shift in the readiness of distributors and B2B brands to adopt digital payments as a strategic cornerstone for their businesses. Unlike previous years, where the focus was primarily on adding payment options at checkout, Balance recognized a pivotal moment—the industry's eagerness to embrace digital payments as a central strategy for growth.

Balance engaged in extensive discussions with major U.S. brands, guiding them beyond the simple provision of credit cards online. The focus was on transforming e-commerce into a winning channel, necessitating innovation and optimization for growth. The pivotal question posed to Balance was simple yet profound: "How can Balance help me grow?"

Photo: Shutterstock/DC Studio

With a transaction network encompassing over 100,000 unique business buyers and more than 13,000 distributors and brands, Balance witnessed a surge in digital adoption. Checkout volumes soared tenfold as businesses turned to digital for critical purchasing needs, including trade credit. However, the complexities of the B2B transaction lifecycle extend beyond the checkout, demanding a comprehensive solution.

This is why Balance announced its new suite of products, providing a holistic approach to the challenges faced by businesses selling online. These suites encompass:

Digital Trade Credit:

• Enables swift buyer approval for terms
• Integrates a checkout application
• Facilitates easy invoice payments and more

B2B Payments:

• Offers a variety of payment methods supporting omnichannel and global transactions

Accounts Receivable Management:

• Provides dedicated products, including Accounts Payable tools for buyers
• Offers automated reconciliation, dashboard reporting, and more

Marketplace OS:

• Equips marketplaces with comprehensive tools for scaling GMV
• Covers everything from payouts to financing

Let's delve into three crucial benefits food distributors can harness by adopting a digital payment solution like Balance—opening doors to heightened efficiency, fostering stronger brand loyalty, and ensuring sustained growth.

Building Trust for Lasting Loyalty:

In the fiercely competitive realm of food distribution, winning and maintaining customer loyalty goes beyond mere efficiency. A user-friendly payment platform, seamlessly facilitating transactions and featuring practical AP tools, positions distributors as reliable partners. More than just a streamlined process, a positive payment experience becomes the cornerstone for building buyer loyalty. Recent research reveals that 80% of B2B food buyers prioritize a seamless e-commerce payment and checkout process. Cumbersome payment processes and subpar checkouts are significant turn-offs, with 51% citing these as top reasons to explore other brands. Moreover, 46% would discourage others from choosing a brand with a clunky checkout. Recognizing that 90% of buyers may abandon carts due to checkout issues, simplifying the ordering process becomes not only integral for customer satisfaction but also the bedrock for cultivating lasting loyalty.

Photo: Shutterstock/Juice Flair

Streamlining Credit Operations:

The second advantage lies in bringing net terms online, a game-changer for simplifying credit operations. A tailored payment platform cuts through the complexities of traditional transaction management. By offering diverse payment methods aligned with clients' needs, food distributors can expedite the procurement cycle. The integration of net terms online also makes the credit review process faster and more efficient for customers.

This doesn't just benefit customers; it streamlines things for finance teams too. Automating the underwriting process allows finance teams to focus on more strategic initiatives. The digitalization of net terms doesn't just improve external customer experiences; it also makes things more efficient internally, creating a win-win for both the distributor and its finance teams. 

Trimming Costs and Boosting Financial Metrics:

The third advantage is all about strategically reducing operational costs. A top-notch payment platform not only speeds up the payment cycle but also offers a comprehensive solution for optimizing processing costs, collections costs, and Days Sales Outstanding (DSOs). By digitizing and automating these financial processes, food distributors can save big. Streamlining collections and reducing DSOs contribute to a healthier cash flow, while the efficiencies gained in processing costs directly impact the bottom line. In a world where cost-effectiveness is crucial, a well-designed payment platform becomes a catalyst for financial optimization, making every transaction count towards the distributor's long-term profitability.

In an era where technology is reshaping industries, food distributors armed with the right payment platform aren't just adapting; they're redefining success. From operational efficiency to building trust for lasting loyalty and strategic growth, the benefits are both tangible and far-reaching. Learn more about how Balance can guide your journey towards lasting success.