Considering the shift in the online buying habits of customers which is highly forced by technological changes and other factors like change in customer expectation, increased customer value has improvised the demand of online marketplaces. Due to this, online Marketplaces are doing vast growth and driving robust sales.
Ecommerce Marketplaces – Business Models
Business models are identified based on how and with whom the transactions are talking forwards.
- If the consumers are selling to consumers, model is known as C2C Businesses
- If the Business owners are targeting to Consumers, it would be B2C Businesses
- And when Businesses are targeting to other businesses then it would be B2B Businesses
The concept will remain same in the ecommerce marketplace business as well.
If you look around the marketplace platforms you’re using will make you understand how one is different from another.
OLX where the customer is selling product to another customer creates a C2C business platform, Amazon is the example of B2C marketplacewhere business is selling to customers whereas platforms like Alibaba, Indiamart are B2B marketplaces where the business needs are fulfilled by another businesses.
Here, B2B marketplaces can grow in two directions, Vertical businesses and Horizontal businesses. Industries like plastic, chemicals, automobiles etc. are falling in B2B sectors.
In B2B or B2C, the concept of online marketplace will remain same.In general terms, Marketplace offers a platform to multiple vendors who can sell their products to buyers. Marketplace owner is the middlemen connecting vendors and buyers who offer variety of different brand of products at a single platform.
Key differentiating Factors – B2B and B2C Ecommerce Marketplace
Though the concept is same, business model and the usage differentiates one marketplace with other. There are different buyer segment in each of the business model, customer of B2C model is different from B2B model.
Why it’s not a good choice to interchange B2C ecommerce Marketplace with B2B ecommerce Marketplace?
Customer from B2C and C2C Marketplace requires easy access, quick delivery, easy payment option, quick buying process. They buy the product in low amount.
Whereas customer in B2B ecommerce marketplace segment requires
- Bulk product orders
- Discount based on quantity
- Availability to edit or change and validation of purchase order online
- Quotation for orders
- Custom quotation
- Different payment option acceptability
In this way, the way buyers deal with the seller makes the difference.
Rising B2B Ecommerce Marketplace Trends
Due to shift in the way business buy products, B2B online marketplaces are rising.
“As per the report, today 74% of the B2B buyers do online research at least for half of their work purchases.
Also, the 73% of B2B millennial are involved into purchasing decision that has different mind-set and preferences for buying. (Reference: forrester.com)
So, the merchants need to be there where your customers are. Though the rises of B2C ecommerce marketplaces are high, actual revenue from B2B ecommerce marketplaces are high and touching the sky. B2B online marketplaces are an untapped opportunity; it provides convenience and easy accessibility to large new audiences.
Also, the start-ups have many advantages to tap this market, like-
- Low entry cost
- Easy to set-up
- No burden of making huge inventory
B2B E-catalogues – replacing print catalogues
Online catalogues are helping both entrepreneurs and buyers because of following important features –
- Gives easy access of products to customer
- Reduces labour costs
- Real time integration with suppliers
Easy access, real time integration and link with suppliers enable buyers to look into the details at their own desktop without any transit error along with reducing labour and print cost.
There are various platforms available to build your own ecommerce B2B multi-vendor marketplace. Magento is highly used and advanced ecommerce platform providing full flexibility and scalability.