Despite being around for more than 20 years, business-to-business (B2B) marketplaces have just started to gain enormous popularity. The number of vertical B2B markets has more than tripled during the previous two years, claims Digital Commerce 360.
Demand has increased as a result, with 40% of enterprises now acquiring 50% of their goods and services through online marketplaces.
By selling on a B2B marketplace, merchants may improve the digital purchasing experience for clients while also maximizing the speed and efficiency of digital commerce operations with minimal investment.
Benefits of global B2B marketplace
A strong B2B marketplace offering expands the markets where your products can be sold. Every supplier in your marketplace has a stake in the outcome. Everyone pushing and positioning the outcomes that are feasible for your clients benefits the ecosystem created around the marketplace.
If you’re unsure about whether your company should join an international B2B marketplace, take these factors into account.
Quickly satisfy customer demand for digital experiences
90% of B2B buyers want to digitize their procurement processes, according to Accenture. However, only 7% of industrial suppliers intend to revamp their sales team in the next two years.
You may immediately satisfy this buyer expectation with a marketplace by utilizing the already-existing digital sales infrastructure rather than developing your own.
Marketplaces offer the tools necessary for both current and potential clients to locate your products online and place orders using a quick checkout procedure. Simply add your product catalog, that’s all.
Increase sales and create new revenue streams
By selling directly to a wider range of distributors and end users, suppliers and manufacturers can create new revenue streams.
Contracting new carriers, negotiating spot prices, and setting up the technical capacity to track shipments are all possible aspects of coordinating the fulfillment and transport of less-than-truckload shipments.
The inconvenience might not be worth the extra money. However, a lot of markets already have a technological and logistics infrastructure in place. With the aid of this infrastructure, sellers may easily and cheaply satisfy orders of all quantities.
For instance, selling to the Chinese B2B platform will enable large manufacturers to create new revenue streams. Small manufacturers, meanwhile, have the chance to take larger orders than they would typically be able to fill.
Profit from platform marketing
The majority of marketplace owners run marketing strategies to draw in specific leads and promote the products displayed on their websites. With less money spent on marketing, sellers can still profit from the platform’s advertising efforts.
The network effect of the industry can also assist retailers. Customers are already swarming to the platform in search of information, commodities, and services as a resource for product comparison.
This enables merchants to increase the number of potential customers in their network without launching a significant outbound effort, either online or offline.
Increase the geographic sales area
Several costs are involved in starting a new brick-and-mortar business:
- Real estate
- Hiring fresh personnel
- Investing in equipment
- Financing the ability of local producers
All of these expenses are subject to the risky conditions of an emerging market. By switching out physical expansion for digital expansion and yet reaching a larger geographic market, merchants can avoid these costs by selling their goods on marketplaces.
Furthermore, unlike a brand-new standalone e-commerce store, marketplaces frequently have ongoing marketing campaigns, logistics alliances, and site visitors.
Protect your cash flow and give your customers good terms
B2B vendors frequently have to wait 60 or 90 days to get paid. To avoid this, vendors should look for a marketplace that includes built-in buyer financing. This will allow vendors to accept payments swiftly while still providing longer terms to buyers.
Both parties’ financial flow will be protected, making this a win-win situation. Additionally, smaller firms and those with bad credit can receive financing at considerably better rates by using the marketplace owner’s credit instead of their own.
Protect your cash flow and give your customers good terms
B2B vendors frequently have to wait 60 or 90 days to get paid. To avoid this, vendors should look for a marketplace that includes built-in buyer financing.
This will allow vendors to accept payments swiftly while still providing longer terms to buyers. Both parties’ financial flow will be protected, making this a win-win situation.
Additionally, smaller firms and those with bad credit can receive financing at considerably better rates by using the marketplace owner’s credit instead of their own.
