B2B Sales: Business To Business
Starting our list with the main types of sales, we have B2B ( Business to Business ). Also known as “corporate sales”, this model consists of commercializing products and services between companies.
In other words, a company provides its solutions to another legal entity and not to an end consumer. In B2B sales types, the business process is more complex. This is because the proposal made by the sales representative usually goes through different people and levels of approval within the company to which you want to sell a product or service.
Therefore, good preparation on the part of the seller is necessary. He needs to know in depth not only the company but also:
- the market in which it operates,
- your greatest pains and needs,
- the profile of decision-makers.
Armed with all the necessary knowledge, it will be possible to devise an effective argumentative strategy that will lead you to close a deal.
Consultative selling is a modality in which the salesperson acts as a consultant who will help the customer solve their main problems and challenges. Closely linked to business to business negotiations, consultative selling can also be used with end consumers, depending on:
- the degree of complexity of the product,
- of the average ticket,
- of customer acquisition costs.
This type of sale intends not just to convince the customer to buy a product or service but to show him that this is the solution he needs right now and that you can help him achieve his goals.
To be successful in creating a sales process like this, it is essential to put the customer at the center of all communication, offering value to each interaction. A consultative salesperson needs to be very persuasive.
To deepen your knowledge on this subject, read more at:
- Sales Persuasion Techniques: What Are They and Which Can Help You Sell More?
- Customer-centric: what it is, primary benefits, and five tips on how to implement this customer-focused strategy
Direct selling is a prevalent type of selling to observe. After all, you’ve probably already been approached by someone trying to sell you a product from HI node, Herbalife, Avon, Natura, etc. In this type of sale, there is not necessarily a commercial establishment. There is a group of autonomous representatives who market the products of a specific brand on their own.
Resellers can buy the products and resell them at a profit, or they can also receive a percentage of sales from other salespeople they recruit. Direct selling is widely used by companies that want to gain capillarity and distribute their products at a low cost. Dealers receive training on the products sold and interact directly with consumers.
What are indirect sales? Indirect selling occurs when company A needs company B to resell its products to the final consumer.
For example, supermarkets (company B) buy products from suppliers (company A) to resell these items to customers who come to their store. In indirect sales, there are distribution channels and intermediaries in the process. Note that indirect sales companies take their sellers to end consumers without the need for intermediary companies.
Consignment sales are a standard modality among companies that sell products to retailers and distributors. In this model, a certain amount of products is sold to the retailer or distributor. If he cannot pass it all on to the final consumer, the company collects the surplus without charging for unsold merchandise. The company charges the retailer or distributor only for the products he was able to sell. This type of sale has the main advantage of reducing costs with the stock maintenance.
However, if the company does not know how to manage this dynamic well, it can get in the way of the logistics of collecting excess goods and causing disruption to its supply chain.
Finally, we have the tie-in sale. Even though it is illegal, some companies still insist on this way of marketing products and services.
A tying sale is configured when the company only accepts to sell a specific product if the customer also buys another product. For example, the cable TV company will only sell this type of service to its customers if they purchase the internet service.
Not giving the consumer the option to purchase the products or services in isolation will tie to sales, a practice prohibits by article 39 of the Consumer Protection Code.
So, run away from the tying sale! The six types of sales that listed above are among the best known and practiced by companies of different sectors and sizes. However, some sales processes have been gaining more space in recent years, mainly because they meet some of the most central demands of the market, entrepreneurs, and consumers; they are:
- drop shipping,
- cross-selling and up-selling,
- inside sales.
Learn more about each of them below.
Drop shipping is an online and out-of-stock sales model in which online retailers sell items without having to keep them in their stock and without making any purchase to guarantee the item.
In drop shipping, the e-commerce owner advertises a product, makes the sale, and only forwards the order to the supplier. This supplier, in turn, separates the product and sends the item to the end customer (who purchased the item in the e-commerce store from the intermediary store).
It is increasingly common among entrepreneurs who start a virtual business, such as e-commerce; after all, it eliminates one of the high costs of starting a store: purchasing products to assemble a stock. In this type of sale, the store works as an intermediary between the customer and the supplier. It is possible, for example, to dropship with Chinese suppliers through platforms such as Aliexpress. Even in this model, the merchant must be concerned with offering exceptional service to his customer. We are talking about a legal sales model, which can be the gateway for many entrepreneurs who fear investing in a business and losing their savings.
Also Read: How To Automate A Company And Improve Processes? Five Steps