Ready to Sell Software Licenses Online?
B2B E-Commerce Playbook
Unlocking B2B E-Commerce
Software vendors primarily selling B2B products face a critical question: "Can we sell our software licenses online?" The answer is a resounding yes. While many businesses believe that B2B sales require account managers and lengthy sales cycles, large vendors like AWS and Atlassian have successfully implemented B2B e-commerce solutions. This playbook will guide you through introducing e-commerce to your B2B software licensing, helping you tap into new revenue streams and simplify your sales process.
Why Focus on E-Commerce?
B2B e-commerce is no longer a novelty; it's becoming the norm. The global B2B e-commerce market is projected to reach $36 trillion by 2026, growing at an annual rate of 14.5% [1].
Similarly, McKinsey & Company reports that B2B eCommerce has become the most effective sales channel, with 73% of B2B buyers finding purchasing online more convenient [2].
This shift is driven by changing buyer preferences and the need for more efficient purchasing processes.
Benefits of B2B E-Commerce
- Increased Reach and Accessibility: Enable potential customers to access your software products at their convenience and access trial licenses without the friction of demo calls.
- 24/7 Availability: Software has an international audience. Selling online means your automated sales team works for you 24/7.
- Reduced Sales Cycle: The "see, try, buy" process is efficient and can reduce the time it takes to make a new sale.
- Lower Operational Costs: More automation means fewer team members coordinating calls, allowing more focus on customer success.
- Improved Customer Experience: Customers are time-poor; enabling self-service improves the positivity they get from interacting with your product and company.
Step-by-Step Guide to Implementing B2B E-Commerce
Step 1: Assess Your Current License Model
Before diving into e-commerce, evaluate your existing licensing model. Consider trends such as:
- Subscription-based Licensing: Popular for its flexibility and recurring revenue potential.
- Floating Licensing: Allows sharing of licenses among multiple users, providing cost savings for customers.
- Consumption-based Licensing: Grants licenses based on usage, aligning the value provided with the value received by the customer.
Step 2: Create a Simple Pricing Model
Simple pricing is crucial for successful B2B e-commerce. It should be easy to understand and compatible with credit card payments. For example, Greyscalegorilla’s pricing model offers a simple subscription with clear pricing and features, allowing customers to make quick decisions without lengthy sales cycles. You can view their pricing model here.
How you price your product is a critical aspect in selling online, with a variety of factors to consider when setting up or revising your pricing model. Check out this great post from the team at Pace Pricing for some more ideas: The Ultimate Guide to Value Metrics for B2B SaaS Pricing & Monetization.
Step 3: Design an Intuitive User Experience
Creating an intuitive user experience is paramount for successful software sales. Your product page should clearly present tiered options, highlighting distinct features and benefits for each. Implement a user-friendly selection process that facilitates easy comparison between tiers, helping customers understand the value proposition of higher-priced options. The team at Maxon does a great job of this.
For more insights on designing a user-friendly interface, consider reading this article.
Step 4: Choose an E-Commerce Engine
Choosing the right e-commerce platform is vital for B2B success. Consider platforms tailored to B2B requirements, focusing on factors like geographical reach and tax needs. Evaluate options based on their ability to handle complex pricing structures, bulk ordering, and customer-specific catalogs. Ensure the platform supports multi-currency transactions and complies with regional tax regulations.
Leading e-commerce platforms for B2B businesses include Stripe, FastSpring, Shopify, Adobe Commerce, BigCommerce, and SAP Commerce Cloud. These platforms provide essential functionalities such as bulk ordering, custom pricing, and easy integration with existing systems.
We offer straight forward integrations, allowing businesses to leverage 10Duke's specialized solution, alongside the e-commerce platform's core functionalities, creating a more comprehensive and tailored solution for B2B operations.
Combining Self-Service with Account Management
Selling software online doesn’t mean everything has to go through a credit card. For smaller customers, this option can reduce friction in the sales process. Larger customers require more personalized attention. Selling licenses online doesn’t mean abandoning the more personalized sales approach and account management.
Licenses can be granted automatically in two ways:
- An e-commerce engine can trigger the grant of licenses to customers who buy online.
- A good licensing engine can be integrated with your preferred CRM tool, like Salesforce or Hubspot, so that once an “Opportunity” becomes “Closed-Won”, licenses can be automatically granted to the license administrator of the customer.
Summary
If you’re a B2B or D2C software vendor selling software licenses, selling those licenses online should be on your roadmap. Key factors to consider include:
- Your license model and the license engine you choose to enforce it.
- Simple pricing.
- Your user experience.
- The e-commerce engine you choose.
- Whether you want to integrate with CRM or not.
Selling software licenses online can transform your business. As a leading license management solution provider, 10Duke has seen first-hand how implementing this approach correctly can lead to amazing results.
Book a call with us if you have any questions or want to discuss your licensing needs.
References:
- www.trade.gov/ecommerce-sales-size-forecast
- www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-multiplier-effect-how-b2b-winners-grow
Are you a software developer looking to sell more? Learn more from our guides:
Should You Outsource a Licensing System?
How to Monetize Software Products?
Guide to Software Licensing – Basics Explained
Software Licensing Models – Ultimate Guide
Software License Management – Basics Explained
Customer Identity and Access Management – What should a good CIAM solution provide?
