Introduction to B2B E-Commerce Marketplaces

Millions of transactions occur daily on internet marketplaces, echoing with clicks and taps. These B2B e-commerce platforms serve as more than just exchange areas for internet companies. They are the starting points for firms to scale up and the arena where giants and small enterprises compete fairly. The Gross Merchandise Value (GMV) of the Top 100 online marketplaces is expected to reach an incredible $3.832 trillion by the end of 2024, demonstrating the rapid growth of these platforms.

Unlike B2C marketplaces, which cater to individual consumers, B2B online marketplaces are designed to meet the specific needs of businesses. They offer bulk purchasing, negotiated pricing, and long-term contracts. Now that we understand a B2B e-commerce marketplace, let’s explore some of its key advantages.

Advantages of Using B2B Marketplaces for Businesses

According to predictions, the global market for business-to-business (B2B) e-commerce is expected to reach a valuation of $26.163 trillion in 2023 and reach $56.921 trillion by 2028. As we enter the world of B2B e-commerce marketplaces, we are essentially exploring a dynamic environment where businesses buy and sell products or services online. B2B e-commerce marketplaces function as digital platforms connecting companies, enabling them to conduct transactions efficiently and effectively.

Whether purchasing or selling, businesses can benefit significantly from using a B2B e-commerce marketplace. It simplifies many tasks, helps firms save costs, and attracts new clients. Let’s examine how:

Advantages for Buyers

• Access a global selection of suppliers, broadening your sourcing options.
• Compare multiple sellers to find the most competitive pricing, saving on costs.
• Manage all your ownership activities in one place, from ordering to negotiations.
• Discover innovative items that can improve your business operations.
• Rely on reviews and ratings to confidently choose reliable suppliers.

Advantages for Sellers

• Gain visibility to a broader business audience, attracting more potential buyers.
• Cut advertising costs by directly connecting with buyers in the marketplace.
• Expand your sales reach without needing more physical space or additional staff.
• Access valuable market insights to understand trends, optimal pricing, and buyer needs.
• Reach a global customer base, extending your business beyond local markets.

No wonder, online marketplaces offer a varied range of advantages to both sellers as well buyers. But just like any other business, this model also comes with its own challenges.

Ready to examine the other side of the coin? Let’s examine the challenges sellers face in B2B marketplaces.

Challenges of Selling on B2B Marketplaces

Entering the B2B e-commerce marketplace can open up significant growth opportunities, but it also presents various challenges. Here are the key points to consider:

• Growth Opportunities with Challenges: Selling on B2B e-commerce platforms offers growth but comes with challenges.
• Remote Sales Dominance: 82% of B2B revenue comes from remote sales, not in-person.
• Intense Competition: High competition requires differentiation through pricing, unique products, or reputation.
• Commission and Fees: Platforms often charge commission or subscription fees, impacting profitability.
• Limited Control: Standardized selling processes restrict brand presentation and customer interaction.
• Complex Transactions: Managing detailed negotiations, pricing, and shipping within marketplace systems can be time-consuming.

Know more: Craft a Professional Line Sheet for Wholesale Business

Top B2B Marketplaces to Sell Online

Faire

Benefits:

• Simple Setup: Faire offers a hassle-free setup with no upfront costs, subscription fees, or commitments for brands, providing a free storefront.
• Extended Payment Terms: Eligible retailers can benefit from 60-day payment terms, allowing them to buy now and pay later.
• Seamless Integration: Faire instantly synchronizes orders, inventory, and catalogs to your Shopify admin, streamlining management from a single platform.

Considerations:

• While Faire Direct orders have a 0% commission, inbound orders through the B2B e-commerce marketplace incur commission fees and additional costs for managing returns.
• Sellers on Faire are required to list their entire catalog at consistent prices with other wholesale channels to maintain trust and consistency among retailers.

Price:

• 15% commission + $10 on marketplace opening orders
• 15% commission on marketplace reorders
• 0% commission on direct orders

Alibaba

Benefits:

• Global Retailer Network: Alibaba provides access to a vast network of global retailers seeking various products, offering immense market reach.
• Verified Brand Profiles: Alibaba verifies brands’ profiles before selling, instilling trust and credibility among potential customers.
• Multi-Language Support: Alibaba automatically translates B2B storefronts into 18 languages, enhancing accessibility and international expansion.

Considerations:

• Intense competition on Alibaba can make it challenging for brands to differentiate and stand out.
• Longer shipping timescales are expected, mainly as many retailers operate in Asia, potentially impacting customer satisfaction.
• Profit margins may be lower due to similar product listings, necessitating price competition among brands.

Price:

• Standard selling plan: $3,499 per year, including $500 in keyword advertising credits
• Premium plan: $10,999 per year, including $2,000 in keyword advertising credits and US-based customer support

Ankorstore

Benefits:

• Flexible Payment Options: Ankorstore offers B2B customers payment on delivery or 60-day terms, enhancing flexibility and convenience.
• Greater Pricing Control: Sellers have complete control over wholesale pricing with no restrictions, allowing for personalized inventory pricing.
• European Presence: With customers and offices across nine European countries, including the UK, Germany, and Spain, Ankorstore facilitates regional market access.

Considerations:

• The minimum order value of £100, excluding VAT, may deter small businesses or first-time buyers from engaging with Ankorstore.
• Ankorstore’s focus on niche brands and independent retailers may limit its appeal to well-established and more prominent brands.

Price:

• 24% commission on opening orders
• 12% commission on subsequent orders
• No fee for directly invited B2B customers

Novi

Benefits:

• Aligned Values: Novi connects with retailers that share similar core values, enriching trust and credibility.
• Expanded Distribution: Expand your retail distribution to reach a B2B e-commerce marketplace or customers whose audience values sustainability and transparency.
• Credibility Assurance: Novi verifies marketing claims, formula ownership, and sustainable packaging, providing a seal of approval for your sustainability claims.

Considerations:

• Novi’s market size may be smaller due to its focus on values, which potentially limits its reach compared to generic B2B marketplaces.
• Documentation and evidence are required to substantiate claims, ensuring accuracy and credibility.

Price:

• Pricing is available upon request.

Amazon Business

Benefits:

• Global Reach: Amazon Business provides access to a vast global audience, maintaining Amazon’s reputation and supply chain network.
• Established User Base: A significant percentage of buyers in the UK and the US make purchases through Amazon Business, offering extensive market reach.
• Convenient Selling: Utilize Amazon’s infrastructure and interface for accessible product listing and transaction management.

Considerations:

• Intense competition on Amazon Business may make it challenging to differentiate and stand out among other sellers.
• Limited control over selling and communication with B2B buyers compared to standalone platforms.
• Some product categories may have restrictions on listing, impacting product availability and visibility.

Price:

• $39.99 per month subscription fee, plus referral fees starting from 8%, varying by product category.

Droply by Abound

Benefits:

• Zero Selling Fees: Droply by Abound offers sellers the opportunity to list products without any selling fees, maximizing profit potential.
• Verified Retailers: All retailers are verified before joining the platform, ensuring a trusted and reliable marketplace environment.
• Brand Showcase: Showcase your brand values, allowing retailers to filter and discover products based on shared principles.

Considerations:

• As a dropshipping marketplace, sellers are responsible for holding inventory and fulfilling orders on behalf of B2B customers, potentially increasing operational complexity.
• Droply’s focus on handmade or original products may limit suitability for brands offering large-scale off-the-shelf products.

Price:

• 10% commission of MSRP (Manufacturer’s Suggested Retail Price) upon sale to retailers.

Feeling equipped with knowledge about the top marketplaces? Great! Now, let’s look at strategies to ensure you hit the ground running.

Strategies for Success in B2B E-Commerce Marketplaces

Alright, you know where to sell, but how do you ensure you’re mastering these marketplaces? Deciding to start a new B2B business takes time. Following these B2B  e-commerce practices may increase your chances of success and get you ready for launch.

Real-time Inventory Management

When exploring B2B e-commerce marketplaces, utilizing real-time inventory management software is crucial to ensure smooth operations. With platforms like Shopify’s B2B marketplace, you can streamline inventory management across all sales channels, preventing the frustration of selling out-of-stock items to potential buyers. Additionally, platforms like Wizcommerce empower stakeholders to manage orders, generate invoices, and access past transactions effortlessly.

Elevating Product Management

In the dynamic landscape of B2B marketplaces, meeting the demand for expert knowledge from B2B customers is paramount. Implementing a strong Product Information Management (PIM) system is essential for efficiently managing a diverse product catalog across multiple channels. This software ensures data consistency by syncing critical product information, including SKU numbers, descriptions, and pricing structures.

Streamlining Order Fulfillment

Efficient order fulfillment is critical for success in B2B e-commerce marketplaces, where handling bulk orders poses unique challenges. Partnering with third-party logistics providers like Shopify Fulfillment Network is essential to ensure the timely delivery of products to B2B customers. These providers offer advanced fulfillment technologies and international warehouses, optimizing the fulfillment process. Additionally, exploring fulfillment services provided by the chosen B2B marketplace platform, such as Amazon Business’s Fulfilled by Amazon, further streamlines operations and enhances customer satisfaction and retention.

Know more: Best Practices for Successful Implementation of PIM Systems

Frequently Asked Questions (FAQ)

What is a B2B e-commerce marketplace?

A B2B e-commerce marketplace is an online platform where businesses can sell products and purchase wholesale items. These platforms often feature payment processing, product search filters, and order fulfillment services.

What are wholesale marketplaces in a B2B context?

In a B2B context, wholesale marketplaces are digital platforms where retailers can buy products in bulk from various brands at lower prices.

Can you provide an example of a B2B online marketplace?

Many B2B online marketplaces cater to specific industries. Well-known examples include Faire, Tundra, and Amazon.

Does Amazon operate as a B2B or B2C marketplace?

Amazon serves as both a business-to-business (B2B) and business-to-consumer (B2C) marketplace. Its wide range of products attracts individual consumers and small businesses looking for supplies.

How do B2B and B2C marketplaces differ?

B2C marketplaces, such as Amazon and Etsy, target individual consumers who purchase for personal use. B2B e-commerce marketplaces focus on businesses selling to other companies, usually in larger quantities and at discounted prices. Unlike B2C platforms, B2B e-commerce marketplaces often require customer approval before accessing listings.

Conclusion

In today’s digital landscape, B2B e-commerce marketplaces have become a powerful tool for businesses to find new buyers and expand their reach.

WizCommerce is a platform that helps B2B wholesalers, distributors, and manufacturers manage their sales process using artificial intelligence. It has created an easy-to-use digitization solution to make their pre-sales processes simpler and straightforward. You can even manage your designs and sample data with their user-friendly Product Information Management (PIM) system. To accelerate your business, book a demo now!