B2B e-commerce transactions almost begin with a request for quote (RFQ). Facilitating the RFQ From your store is a good way to generate new business opportunities for the store in the B2B marketplace.
Bargaining system has always been the key feature in our society.
Consider an example- Let’s say a product’s original price be rupees 50. Now if a customer wants to buy 100 quantity for the same product, it can be negotiated with the manufacturer to give them away at a lower price, say 100 quantity for rupee 4000.
A Request for Quote (RFQ) allows the customers, wholesaler, and retailer to request pricing for specific products or services directly through a website from the manufacturer or company.
In the image below there is an example how does the RFQ is made between the buyer and the sellers
Magento 2 Marketplace Request For Quotation (RFQ) allows the customer to send the RFQs to the marketplace sellers. Each seller can view and manage the RFQ from their end. The admin can configure auto or manual approval of RFQs from the back-end.
converting quotes to orders
The normal lifecycle of converting quotes to orders looks like this-
PRICE- B2B marketplace has their own different pricing policies. Some of them use extensions such as Price After Login to hide prices for non-registered customers.
Some companies or stores would rather not be upfront with any price but will give the custom price proposals. Yet others would be happy with tier pricing.
PROPOSAL- When it comes to sending a proposal, in answer to the online request, there are a few factors that need to be taken into consideration by the company or store.
Think about standard price lists and tier prices. The customers expect instant answers, anything less would be a disappointment.
To make it easier for the customer the main thing is to send out a decent proposal.
APPROVE NEGOTIATED PRICE- To convert Quote into Order the negotiation and approval is the key to success. In B2B marketplace business, customer relationship management must be there.
To make the two-way communication better we have the buyer and seller chat module. When your customer is happy with the negotiated price it’s merely one click to indeed convert the quote into an order.
WHY RFQ IS AN ESSENTIAL PART OF B2B E-COMMERCE?
Online quote systems for the company/store increase the conversion rates by providing prospective customers the opportunity to learn more about a product before committing to a purchase.
The customers can request a quote whenever it’s convenient for them. The customer can request for quote whether it’s during or outside of operating hours. Quotes are easily converted to orders for easy checkout.
Continuing with a simple multivendor marketplace is just not enough, It needs one step forward by starting a B2B marketplace.
RFQ provide customers the opportunity to learn more about a product or service and request pricing from multiple companies without any commitment to purchase until they are ready. In this way, both the retailer and manufacturer can earn a huge amount of profit.
There are many extensions and add-ons that play a major role in the success of a B2B Marketplace and Magento 2 Request For Quotation Extension is one of them.
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