Why You Should Invest in B2B eCommerce

B2B eCommerce

By 2020, the B2B eCommerce Market will be bigger than the B2C Market. It will be worth $6.7 trillion, which is a lot bigger than the $3.2 trillion expected growth of the latter. According to a recent research conducted by Frost & Sullivan, Alibaba is the forerunner of this growth as it reaches a gross merchandise value of $27.28 billion. The research firm also predicted China to emerge as the largest online B2B market with an estimated $2.1 trillion growth in 2020.

But, what is really the difference between B2B and B2C? In B2B, prices are variable. It needs flexible a logistics solution. The sales are affected by tax and regulatory factors. However in B2C, prices are fixed. Since quantities are low, product showcase and shipping are easy. Sales are also relatively simple due to little regulation and tax complexity. In B2B, marketing is more complex. Clients need to understand how a product works before considering a purchase. On the other hand, customers in B2C buy products even without interest of learning how they work. Although the B2B eCommerce platform is more difficult, it also increases the system’s value.

Currently, the B2B marketplace is dominated by consortia-led exchange and industry-sponsored markets, which thrive on harnessing the value proposition of buying/selling and using low-cost Internet platforms. In the past few years, companies around the world started their own B2B markets to migrate services to online platforms.

There are several B2B business models such as e-procurement solutions, consortiums, single firm-sponsored, and collaborative marketplaces. Most of them are moving towards ubiquitous and affordable online platforms to interact with both buyers and sellers using the standard PC and the Internet. This transition allows companies to work with multiple companies using EDIs to automate and facilitate online purchase.

B2B eCommerce is growing to around $7 trillion. The technology has improved, increasing the expectations of buyers and making automation more powerful. If you want to participate in the B2B space and take advantage of its growth, you need a reliable and effective platform. You need Appterra.

Charlie Alsmiller

Throughout his career, Charlie Alsmiller has focused on customer problems in difficult industries such as Energy and Telecommunications. Prior to starting Appterra in 2005, Alsmiller was VP of Global Operations for Allegro Development, a leading provider of software for the energy sector. He has also served as president of OmniSpace Technologies, a leading SaaS provider that he founded in 1999. He spent over 10 years in the consulting world with Price Waterhouse and Deloitte Consulting, where he participated in a wide variety of projects for very high profile clients. Mr. Alsmiller holds a BBA from Baylor University in Management and Information Systems and a MBA from the University of Dallas in International Business. Specialties: Technology ventures, Enterprise Software, Contract Negotiation, International Operations, Private Equity, Product Management, Strategic Alliances, Software Implementation, Software Development

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