B2B e-commerce Industry: Growing Trends and Company Contribution
The B2B industry has been witnessing significant growth of e-commerce platforms. Various businesses choose B2B marketplaces to fulfill their demands related to features, offers, services, etc. Through B2B or the Business-to-Business e-commerce model, a business can offer a set of products or services to other companies through online platforms. The working of the B2B model is somehow similar to the B2C model, except this model involves trades between a manufacturer wholesaler and retailer via an online sales portal.
How does B2B e-commerce work?
B2B sellers work with wholesalers, retailers, organizations, and resellers. The combination of e-commerce and B2B business models is a prominent way for buyers and sellers to meet in one digital platform. Through this business model, the involved parties can place and manage their orders through mobile phones and efficiently connect with distributors and suppliers. Moreover, businesses can also reduce costs and improve efficiency through automated services.
Future prospective of B2B e-commerce industry
The concept of B2B e-commerce is evolving rapidly. Astute Analytica estimates that the global B2B e-commerce market is forecast to grow at a compound annual growth rate (CAGR) of 14.1% during the forecast period from 2021 to 2027. Growing innovations, service improvements, and the efficiency of internet-related services are driving the growth of the industry.
Trends driving the growth of the B2B e-commerce industry
Payment Convenience: The advent of cards payment, online payment, and other remote transaction methods has changed the outlook of the B2B e-commerce industry. The suitable payment methods are the prominent factor driving the growth of the B2B e-commerce market.
Augmented Reality (AR) and Virtual Reality (VR): AR is the prominent trend fueling the growth of the B2B e-commerce market. AR helps customers comprehend information relevant to the products. It also demonstrates the picture of the product in the real world by displaying the 3D outlook. Many popular brands, including Cisco, are now using augmented reality to grow their businesses. The company employs an AR Creation tool to provide technicians with virtual demonstrations of machines.
Chatbots: Chatbots is another significant trend preferred among the consumers of the B2B e-commerce strategy. It offers great customer service and enhances the customer shopping experience. For businesses, chatbots can eliminate a large amount of time spent on searching the information.
Omnichannel B2B E-Commerce: The demands of e-commerce, especially in the B2B industry, are changing steadily. Thus, an omnichannel strategy plays a crucial role in catering to the complicated demands of the public.
SEO and Social Media: SEO is considered a popular tool to grow popularity on the internet. Businesses spend highly on SEO to gain more organic traffic for the website. In addition, social media is now highly used to promote the brand because of the presence of a large number of users. The maximum number of businesses prefer social media to increase awareness about the brand’s services and advertise their product on a large scale. Social Media is considered a prominent platform to increase consumer engagement and gain followers.
Some Successful B2B e-Commerce Companies
The convenience of online shopping is raising the demand for innovations. B2B e-commerce business model is legit one of them. Consumers are rapidly inclining towards online sources to meet their needs. Some of the renowned B2B e-commerce business platforms are Amazon, Alibaba, Mercateo, Global Sources, Rakuten, Walmart, and IndiaMART.
Amazon: In 2015, Amazon transformed its B2B e-commerce operations from AmazonSupply to Amazon Business. The brand achieved sales of more than $1 billion in a single year. The B2B e-commerce industry is rapidly growing in recent years. Now it has become a significant necessity. Amazon Business offers B2B buyers a customer-focused e-commerce experience. The brand offers exclusive features, such as business prime, Multi-user account services, business-only discounts to raise the profits of the consumers.
Alibaba.com: Alibaba.com is the fastest growing B2B e-commerce platform across the globe. The business holds the highest market share of around 30% in the global market. In addition, it is regularly introducing strategies to expand its operation.
Recently, Alibaba.com inked a partnership with AWEX with the aim to help Belgian SMEs go digital. In addition, the brand also made headlines as it signed a pact with Hello Alice. This partnership intends to offer 50 entrepreneurs $10,000 each under its first Alibaba.com Grants Program.
In addition, the brand is focusing on strengthening its foothold in India, Europe, and the United States.
Shopify Handshake: Shopify Handshake is one of the latest wholesale marketplaces operated by Shopify. Shopify acquired Handshake, a B2B e-commerce platform, in 2019. The platform now offers services to both retailers and wholesalers with the aim to provide a variety of advantages
INSYNC: INSYNC launched B2BeCONNECT Mobile App in 2019 with the aim to set a strong foothold into the world of mobile commerce. The brand intends to offer smart, robust, and powerful e-commerce solutions to B2B marketers through this app.
eBay is also strengthening its B2B e-commerce services. The brand recently launched eBay Business Supply, a new section to cater to the demands of the small, medium, and large enterprises.
Recently in September 2021, eBay and Bidadoo inked a partnership on B2B eCommerce for equipment, trucks.