In recent years, B2B e-commerce has expanded quickly, creating new sales channels, including B2B marketplaces. However, should they be taken into account while creating your e-commerce company plan?
Continue reading to learn more about the possible advantages of these services as well as the risks you should be aware of.
Annual business-to-business sales will top $100 trillion in 2020. Only USD$12TR of these were online transactions2, but change is rapidly approaching.
The pandemic and a new influx of millennials in decision-making roles who want business interactions that are more in line with their B2C experiences are driving the digitization of traditional B2B operational processes, from sales to customer interactions; from fulfillment to order delivery.
Your online B2B platform
Building a top-notch, user-friendly platform has never been simpler thanks to the development of B2B e-commerce software. Your website can contain a robust search engine, thorough product descriptions, interactive assistance, how-to videos, and a variety of payment choices in addition to being available in several languages.
In actuality, it has every feature users have grown to anticipate from a B2C website. This will increase sales while saving your company time and money. B2B marketplaces may be a beneficial complement to your sales channels, even though they are not a replacement for your e-commerce website.
Which one is the best for your company’s sales strategy?
B2B marketplaces may look tempting to providers. Access to a large consumer base and greater bulk sales are made available to SMEs with modest marketing expenses.
Customers benefit from the convenience of not having to evaluate and handle several providers. But there are obstacles as well. The average order value is typically greater in B2B transactions.
Because of this, the risks are substantially larger because even one negative transaction can harm the supplier’s reputation. B2B companies who want to incorporate markets into their e-commerce strategy should carefully consider the advantages vs the hazards.
You might opt to devote time and resources to building your e-commerce website, including digitizing your whole product catalog and incorporating a potent search engine.
How B2B digital marketplaces operate
- First, there are horizontal marketplaces, or “generalists,” that provide a large selection of goods to many different industries. You may locate websites like Alibaba.com here.
- The Vertical Marketplaces come next. These tend to deal with a single kind of product or sector and are specialized. For instance, in the automotive sector, buyers and sellers connect on websites like Car-Part.com or PartsMarket.com.
- B2B marketplaces can also make distinctions based on location. Large, global players conduct business globally (although they may tend to prefer manufacturers from particular regions) such as thetradebuzz.com. However, local B2B marketplaces typically link buyers and sellers within a particular nation or region.
What to look for in a B2B marketplace as a seller?
Naturally, you should have the chance to expand your network and bulk sales in every market. It should also enable SMEs on a tight budget to spend less time and money updating catalogs or monetizing marketing channels.
Additionally, your marketplace must provide direct communication with customers so that you can build business relationships. It should also enable automated solutions so that you can collect leads and orders more quickly than by phone or email.
Start with a payment option you can afford
Select one preferably offered by a B2B marketplace with a low-cost baseline: On each order you receive, commission-based models charge a proportion as a commission.
You may pay a membership fee for services like account administration, advertising, and logistics assistance in subscription-based business models. Models that are based on listing fees levy an additional fee for each product you list.
Find a user interface that is simple and intuitive to you
Instead of spending hours figuring out how to input product and business information, you want to get going as soon as possible.
Look for a variety of vendor attributes that give you control
Such as shipping tools, payment alternatives, and CRM (Customer Relationship Marketing) software.
To conclude, B2B marketplaces are preferably the best option for every company, which is why you absolutely must invest in your e-commerce website.
Can you afford to not have one when 38% of B2B customers say the option to make orders via an online sales portal is their top factor when choosing a new supplier?
This blog can assist your company in navigating the B2B digital revolution and making the most of every new sales opportunity, whether you currently have an e-commerce website that needs to be upgraded or you’re starting from scratch.