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.