Best Way To Utilize B2B Marketplace Platform

According to a Statista report1, global business-to-business (B2B) e-commerce transactions reached the US $12.2 trillion in 2019. The growth of the B2B marketplace is one of the most notable trends in B2B e-commerce.

This online marketplace model has had a significant influence since it has changed the way that B2B buyers and sellers conduct business and serves as a hub for networking.

For conventional B2B wholesalers and distributors, adopting the online marketplace model is a great way to stay ahead of the competition as the trend continues to rise.

Essentials of B2B marketplace

A B2B marketplace is a sort of e-commerce platform that enables B2B buyers and sellers to conduct business online in one location. Businesses sell their goods and other value-added services on a B2B marketplace, much like they do on a B2C one.

The buyers are other businesses as opposed to brands, manufacturers, suppliers, and wholesalers. The marketplace operator processes these transactions electronically.

A B2B marketplace may also go by other names, such as a B2B trading platform, B2B purchasing or sourcing website, B2B portal, cross marketplace, B2B catalog and directory, and others, depending on the many B2B selling scenarios.

Comparing B2B with B2C, C2B, and C2C

It is helpful to contrast B2B with other sales models, such as B2C, C2B, and C2C, to better explore the definition of what a B2B organization is.

• Direct sales to individual clients are known as business-to-consumer (B2C), commonly referred to as retail sales. It is a less complicated business transaction with a fixed price, lesser volume, and less administrative work.
• Consumers provide services and values for businesses to use in consumer-to-business (C2B) transactions, such as customer reviews or influencer marketing.
• Consumer-to-consumer (C2C) refers to transactions between two private individuals. The traditional illustration illustrates how eBay was in the beginning.

The most popular B2B internet markets

There aren’t many notable B2B marketplace systems available today, mostly because it takes so much work to develop the technology and maintain a solid reputation over time.

Here are a few of the major B2B multi-vendor marketplaces, in no particular order:

• Alibaba.com
• Global sources
• eWorldTrade
• Thetradebuzz.com
• Amazon Business
• Thomas net

B2B marketplace types and their operational models

Depending on the participant structure and other various factors, there are various sorts of B2B markets.

Horizontal versus vertical marketplaces

Vertical marketplaces, often known as “vortals” (vertical portals), focus on a single product category or sector of the economy. Horizontal marketplaces cater to the demands of consumers in many markets or industries by selling a variety of goods and services.

Markets that are one-to-many versus many-to-many

A single purchasing business oversees a one-to-many marketplace. For instance, massive automakers like Nissan can create an online marketplace to which their suppliers can gain access and submit bids and quotes for the goods they are seeking.

Local versus international markets

We distinguish between local and international B2B marketplaces based on geography. While businesses only serve their local market on local marketplaces, the interchange of products and services across international borders is made possible by global marketplaces.

Business model dependent on commissions

Sellers pay a commission to the marketplace operators for each successful order they get through the platform, usually in the form of a percentage. Depending on the type of products, the category of products, the number of orders, the value of the cart, and other trade criteria, the marketplace may impose varying cuts.

Subscriber-based business strategy

To use the marketplace’s platform for commerce, merchants must pay a membership fee. Large B2B trade marketplaces with lots of recurring customers tend to use this approach more frequently. To entice more memberships, the marketplace might include some extra value in the subscription packages.

Benefits of participating in a B2B marketplace for suppliers

Currently, 75% of B2B transactions take place online, and an increasing number of companies are using online channels for product sourcing and procurement. For suppliers, participating in a B2B marketplace offers a tremendous opportunity to grow sales and your company.

If you’re still unsure, follow these pointers to discover more advantages of selling on a B2B marketplace.

• You will already be miles ahead of many of your rivals that still rely on outdated in-person B2B sales methods by digitizing your complete catalog.
• The B2B marketplaces provide B2B buyers with the ease and security of connecting with and making purchases from numerous verified and reputable suppliers on a single centralized platform.
• Regardless of the platform’s revenue model or the seller fee structures, entry to a B2B marketplace often has a minimal upfront cost that any firm of any size can afford.