Wondering what a B2B marketplace can do for your B2B business?
You're not alone. More and more business owners and entrepreneurs are adopting this technology to grow their bottom lines.
B2B marketplaces offer an opportunity to reach new customers and build B2B sales leads with minimal effort.
We'll show you how these marketplaces work, the different types and services available, and how you can transform your business with one.
Business to Business B2B Wholesale Marketplaces
Business to business wholesale marketplaces are growing at an exponential rate and opening new channels of opportunity for small-to-midsize businesses. These online tools are changing the way B2B deals are made and what is B2B.
They are responsible for the rapid rate of growth seen in many industries. Here are some interesting data points:
- Marketplaces account for 50% of global online sales
- Only 6% of B2B buyers don’t currently use B2B marketplaces
- 75% of B2B procurement spending is projected to happen online in the next five years
B2B Marketplace Meaning
A B2B marketplace is a B2B ecommerce platform that connects wholesale suppliers to wholesale buyers. Sometimes called a B2B eCommerce marketplace, they enable sellers to reach more customers than they could otherwise and make the sales process easier.
Most marketplaces also allow sellers to market, sell, invoice, and fulfill orders using a single platform. BlueCart is one such platform that helps food wholesalers acquire new customers and grow their businesses.
The Basic Types of B2B eMarketplaces and Services
There are three basic types of eMarketplaces that each have their own services and structure.
The three types are:
- Supplier-oriented marketplace. This model is also called e-distribution and is noted for having many buyers and few suppliers. It can be run by a single business or a group and is owned by the supplier. It is good for building goodwill and loyal customers. Cisco runs one of the largest of these and sells more than $1 billion worth of network products each year.
- Buyer-oriented marketplace. Also called e-procurement, this model has few buyers and many sellers. In this model, the buyer owns the site, and the sellers list competing products at different prices. These bidding sites target large-scale buyers only. GE's electronic bidding site, which goes by the name of GE TPN Post, is one of the biggest buyer-oriented marketplaces.
- Intermediary-oriented marketplace. This fast-growing marketplace is called an e-exchange and features many buyers and sellers. It is owned by a third party that connects buyers to sellers for a small fee. It is the ideal solution for small- and medium-sized businesses. BlueCart is a great example of this type of marketplace that connects thousands of wholesale food suppliers and buyers.
Vertical B2B Marketplace
A vertical B2B marketplace is a niche marketplace where the products or services sold are only within a single industry. These marketplaces serve a smaller market than others, but are much more useful for businesses within that particular industry.
The BlueCart marketplace is a vertical marketplace for the food industry and connects food wholesalers with buyers from all over the country. It also saves on B2B marketing costs since it connects businesses with ease and has built-in marketing functionality.
B2B B2C Marketplace
There are many differences between a B2B and B2C marketplace.
Here are five of them:
- Product categories. B2B marketplaces are much more niche than B2C and may only feature a single category of products. This ensures the products are of a guaranteed quality, but also limits the market to far fewer customers.
- Order volume. B2C marketplace orders can be of any size, but are often a single SKU. B2B marketplace orders are much larger and minimum order quantities are often required.
- Pricing structure. All customers on B2C marketplaces pay the same price for the same goods. This is not the case with B2B marketplaces. Pricing is based on the relationship and agreement between the seller and buyer and sites may use a bidding system or pricing tiers. Sellers may offer bulk shipping, volume discounts, a recurring order contract, and more.
- Order cycle. Order cycles are a major component of B2B vs. B2C buying trends. B2C customers order quickly and require little information to be converted. B2B customers infamously take much longer to buy and may require more detailed information. B2B marketplaces are the ideal way to help speed the sales up and connect the buyer and seller.
- Delivery time. B2C marketplaces live and die by how fast orders are fulfilled. B2B marketplaces are more focused on orders arriving on-time than on them arriving quickly. Quality must also always be high or reorders are unlikely.
How to Start A B2B Marketplace
Starting a B2B marketplace is easier than ever, thanks to the rise of third-party hosting sites. Getting your site from idea to growing marketplace is best done by following a few simple steps.
Here are the steps you should take:
- Identify a market need. Marketplaces are only successful if they bring real value. You need to make sure that you're trying to solve a real problem that isn't fixed in a better way by someone else. If you are, then you can start building.
- Launch your Minimum Viable Product (MVP). The MVP is a bare-bones version of your final marketplace that you push out early to test the market. This product should still have a good user experience and will serve as a litmus test for the demand and help you hone your ideas.
- Find your market fit. With the MVP live, you'll see whether your idea resonates with the market or not. You'll also see what features are most-wanted and narrow your focus to provide the best end product.
- Add specialty features. With this information in hand, you should begin to add the features your customers want and improve the user experience. Focus on key features that will save your customers time and money.
Best B2B Marketplace
The best B2B trade marketplace varies based on industry and a business's needs. The key is to find a site that offers the tools you need to make informed decisions. You also want to make sure the user base is large enough to connect you with the best buyers and sellers. Vertical marketplaces are a great place to start.
For food wholesalers and those in the restaurant industry, the best B2B online marketplace is BlueCart. It's an all-in-one solution that lets sellers have control over every aspect of their sales.
You can monitor product catalogs, manage and fulfill orders, respond to customer questions using a built-in messaging platform, and more. There's even a robust set of options for B2B payments that allows you to be more flexible and build relationships.
Marketplace Your Orders
B2B marketplaces can connect small business owners with customers all over the world. This will let you grow your business quickly and effectively without having to invest all of your time and money into building an ecommerce website.