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The Pros and Cons of Selling to Uncle Sam

February 17, 2022 | Oro Team

A version of this article has been published in Thomas, contributed by Yoav Kutner, CEO and Co-Founder of Oro Inc.

Business-to-government (B2G) purchases are notoriously complex and time-consuming. But for all the hurdles they create, B2G deals can be highly profitable for businesses. 

In this article, you’ll learn about the challenges and opportunities of selling B2G and how to get the most of B2G with digital commerce. 

What Pushes Companies Away from Selling B2G

In the B2G world, sellers deal with many unique issues. Complex policies and rules for contract agents, near-endless ordering processes, approvals, and certifications all get in the way of selling to governments. 

Not to mention, you need to meet transparency requirements forcing the disclosure of sensitive company information. 

With all these headaches involved, why do companies want to get into the arena of selling B2G?

Reasons to Embrace B2G

One compelling reason to sell products and services to the government is that it pays off well. The U.S. government spending amounts to $7 trillion annually, and that number has only risen during the pandemic. 

Furthermore, B2G deals help grow your business: with one contract under your belt, it’s easier to win others. Plus, contracts often run for many years, providing stable profits.

Last but not least, government procurement places all sellers on an even playing field, giving smaller vendors a chance to win big contracts.

Getting More Out of B2G

Selling your products and services to Uncle Sam has its pros and cons. The key is to knowing how to maximize the benefits of your B2G efforts. 

That’s where eCommerce know-how comes into the picture. With digital selling channels on the rise, it’s possible to leverage technology to assist with B2G sales. Deloitte reports that 74% of government agencies can benefit from digitizing key sales processes. 

This trend is supported by governments, which move online to streamline procurement, save time, and drive staff productivity.  

So what does it mean for sellers? They shouldn’t shy away from technology like eCommerce to meet government needs and increase their chances of getting lucrative contracts. 

What to Look for in a B2G eCommerce Solution

Start your search with eCommerce platforms that can accommodate government purchases. This means a robust, flexible, and scalable solution that supports APIs for complex integrations and provides the ability to adapt to different technologies and processes.   

Just as important that your eCommerce tool has a flexible and robust automation engine. It enables you to support diverse purchasing scenarios without resorting to costly workarounds.

The final thing to remember is that government actors have specific hosting, infrastructure, data control, and security requirements. So B2G eCommerce will typically involve on-premise tools instead of software as a service (SaaS) or platform as a service (PaaS) solutions. 

Drive Growth with B2G eCommerce

If you want to sell to federal, state, and local governments, you need to adapt to serve the needs of B2G customers. It means making eCommerce a substantial part of your B2G efforts. 

Digital commerce can help you meet unique organizational, approval, and transactional requirements, accomodating different agency structures, and ordering needs. Getting B2G eCommerce right will jump-start a new growth avenue for your business.


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