Considering capabilities and features, online B2B marketplaces are still underutilized. However, the trend is rapidly changing and several companies have started to realize the immense potential these online marketplaces possess. Now the common adoption of a marketplace as a purchase or sales channel will change the way a company handles its sales and procurement department. These marketplaces are bringing sustained profitability and improved productivity to their bottom line.
What is a B2B marketplace?
Business to business (B2B) marketplace is an online platform where sellers and buyers come to collaborate, communicate, and do business transactions. Whether you are a PCB assembly manufacturer or a LED TV buyer, you can find your respective customer or seller.
B2B marketplaces handle a large number of companies as a community. The main goal of a marketplace is the organization of business platforms filled with features, allowing members to conduct several business processes over the Internet. Ultimately, the company increases productivity.
Two primary barometers of a company’s productivity are:
- Increased Revenue
- Cost Saving
Both these two indicators show improved outcomes if a company includes marketplace features in possible areas of its business operations.
Following are six compelling reasons why companies should begin using B2B marketplaces without hesitation:
1. B2B marketplace contains a large community of sellers and buyers
After becoming a member of a B2B marketplace, companies get instant access to hundreds of prospective suppliers and buyers. On average, all B2B marketplaces have over 100 thousand members. For instance, if you need to sell a printed circuit board assembly, you can get hundreds of leads in no time.
This number offers an opportunity for business expansion by finding new suppliers and customers from this new community. Working with the members of the new community closely, businesses get every chance to enhance their businesses drastically.
2. Real-time marketplace allows buyers to make a quick decision
Buyers can research, study, and compare a product offered on a B2B marketplace without leaving it. This feature of online marketplaces gives key information essential to making a buying decision and helps buyers to make a buying decision faster.
According to an estimate, a full 47% of buyers visit a website without having the necessary information required to buy a product. Products listed on a marketplace are integrated with the e-Catalog and seller’s e-store. This aids in increasing the buyer conversion rate significantly.
3. Sophisticated e-Catalog helps show comprehensive product features
An e-Catalog is an online content management solution for products with an easy user interface that provides efficient navigation, integration, and searching capabilities to organize and publish product information. It will enable real-time handling of corporate processes concerning selling and buying.
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It stores item content in a solitary data set and puts together item data under a predefined ordered chain of importance. It additionally has modern inquiry capacities so purchasers can find items without any problem.
Researches show, in several cases, buyers cannot take conclusive purchasing decisions because of poor product content; resulting in a loss of business opportunity. To avert this, all B2B marketplaces have adopted one kind or another advanced e-catalog system that delivers a compelling value proposition. As an outcome, companies can expect an increase in revenue, better client satisfaction, and a shorter sales cycle.
4. Sales solution ignites selling process and thrashes overhead costs
The integration of the sales chain into a B2B marketplace covers all stages of the selling process including:
- negotiation
- quotation
- billing and
- shipment tracking
The electronic sales process reduces the sales cycle considerably, enabling lower costs of processing. Electronic sales also help diminish document errors connected with paper-based systems.
5. e-Procurement makes buying easier
Electronic purchasing is a technique of conducting transactions between suppliers and buyers over the Internet. An e-Procurement system has now become an integral part of online B2B marketplaces.
Procurement through online marketplaces has several undisputed benefits. Transaction costs get lowered thanks to the streamlined transaction process. It limits rogue spending and saves time for employees.
6. Web Store offers new opportunities to retail businesses
Via the online marketplace, you can discover a wide range of B2B buyers and the web store feature allows participant companies to grow their stores using the same e-Catalog providing a magnificent opportunity to target a different market segment.
This, by itself, is a distinctive opportunity. Studies show that an increased number of small companies with 20 employees or less are making more than 25% of their sales online.
There are some other advantages that a company can get from enrolling in an online B2B marketplace as well.
For buyer companies, a B2B marketplace provides:
Lower transaction costs –
It streamlines transaction processing.
Access to new suppliers –
Participation in B2B marketplaces removes geographical barriers and offers access to new suppliers.
Time savings –
It provides faster ordering and approval processes and delivery tracking.
For B2B suppliers, it offers:
Minimized inventory costs –
Forecasting capability and clearer visibility allow companies to considerably lessen inventory-keeping costs.
Access to new markets and buyers –
B2B marketplaces provide new sales channels, which opens up new opportunities for suppliers.
Increased sales –
With access to wider markets, suppliers have the prospect to increase revenue.
Reduced overhead costs –
Thanks to a smooth supply chain overhead costs can be minimized by up to 30%.
Diminished order processing costs –
The supply chain arrangements of a B2B trade may permit vendors to decrease request preparation costs significantly. Studies show that the cost of preparing a buy request can be diminished from US$ 70 down to US$ 6 as it were.
Reduced support costs and sales –
By automating customer support and sales companies can minimize overhead costs around 25-30% easily.
Last Word
B2B marketplaces are your one-stop business solutions for several needs of a company. Typically, online marketplaces offer a wide range of functions and features. Participant companies can choose required functionalities that use them effectively and reap the benefits mentioned above.
Would you like to read more about online B2B marketplaces-related articles? If so, we invite you to take a look at our other tech topics before you leave!
