B2B Ecommerce is a short form of business-to-business electronic commerce, is selling products or services between two or more businesses through the internet. In general, it is used to upgrade capability for companies. With Ecommerce website, orders can be processed automatically, instead of processing orders manually by telephone or e-mail. B2B Marketplace management is an online marketplace, which acts as a center for the business community.
Where various businesses and companies such as seller and buyer companies, suppliers, importers, exporters, retailers, wholesalers, etc. Will be able to connect with each other for selling and buying the various products at one platform. In a simple terminology, it is a digital marketplace where a business is operated with another business in terms of a commercial transaction.
Here are five reasons B2B companies should launch their own Online Marketplace:
Risk-free assortment expansion
Today’s sellers need a more agile way of doing business. The Marketplace model is the best method for risk-free product assortment expansion, by reaching out to the extended community of sellers that bring flexibility and agility to the eCommerce process. The Marketplace model takes traditional assortment expansions mechanisms like drop-shipping to new, more agile levels.
With the Marketplace model, vendors – even small businesses – can tap into an audience of buyers that were previously inaccessible. Buyers also win, gaining access to an extremely wide range of supplier catalogs and products, with a customer experience that rivals B2C standards.
Remarkable growth forecasts
In addition to this $7 Trillion global forecast by Frost & Sullivan, Forrester Research estimates that B2B Online Marketplace will exceed $1 Trillion by 2020 in the US market alone.
The firm also found B2B Online marketplace sales in the US in 2015 to total $780 Billion. B2B Online marketplace will be mainly growing strongest in manufactured goods, such as spare parts in the automotive and aerospace industries, electronics, industrial machinery, and office supplies equipment. This represents a huge market opportunity for vendors and customers both.
Not only will you reach new customers, e-commerce also allows you to easily implement an automated cross-sell. And up-sell recommendation program, offering relevant suggestions to customers. On the site and encouraging them to purchase related items or items with more features and functionality.
Amazon has changed customer expectations
Given the changes in B2B buying behavior, distributors must optimize the online buying experience by following best practices of B2C. Amazon is the reference model for all B2B players investing in the eCommerce channel, so much so that companies aspire to recreate. The “Amazon experience” on their own websites (according to a study conducted by SAP Hybris and Forrester.)
Doing so requires increasing the breadth of products offered while keeping Quality of Service (QoS) high. These are two essential levers (the other being price) of an effective strategy for acquiring and retaining professional customers. The Marketplace model is the only one that addresses all three levers. Amazon changed the game in B2C retail and is having a fast impact in B2B. With Amazon Business doing over $1 Billion in its first year of operation.
Best way to build customer value and trust
The best way to create customer value is to gain and maintain the trust of that customer. When a customer decides whether to buy any product from one company or any competitor company. Then he will basically compare the price and quality of the product. And on the basis of that his trust will increase. This will help customer and sellers both to make the decision and his trust will remain.