Tag: b2b marketplace script

B2B Marketplace 01

Why Investing In The B2B Ecommerce Marketplace Technology Is Important For Manufacturers, Distributors And Wholesalers

Retailers have always been quick to embrace eCommerce. From selling clothing and sporting equipment to garden goods and groceries online, they seemed to have hit the jackpot with both B2B and B2C online mediums.

However, the same can’t be said about B2B manufacturers, distributors, and wholesalers. For starters – the vast majority of them don’t enjoy the high-profit margins or the revenue growth that a mature eCommerce business generates.

The B2B manufacturers, distributors, and wholesalers lag because they are not sure how if their customers want to buy online. Not so surprisingly, manual transactions account for 49.3% of all sales by manufacturers and distributors.

A survey conducted by B2BecNew states 50% of them don’t even have an eCommerce website, let alone any other option of selling their business online. With the B2B marketplaces and eCommerce websites collectively a $1tn market, things are bound to take a turn for the good.

The B2B manufacturers, distributors, and wholesalers now show an urgency to get into the game. That means, out of those who don’t have an online presence, 75% plan to launch a website within two years while almost 59% of them plan to do it within a year.

However, having an eCommerce website is not just enough. You must also invest in a proper B2B eCommerce marketplace technology. Here are four reasons why:

Enjoy higher profit margins

Consumers tend to spend more on an online transaction due to product recommendations, pop-ups instigating impulsive buying, and easy to navigate websites. The more eCommerce sites are more comfortable to navigate and browse through; the more transactions will they attract.

Whether you are a manufacturer, distributor, or a wholesaler, a user-friendly website will grant you profit margins that are several points higher if you have an eCommerce store. One of the biggest reasons for the same is an automated order entry that reduces waste productivity and customer dissatisfaction by upping a typical order value from $150 to $50.

And that can happen only when you invest in a robust marketplace technology, an online multi-vendor marketplace software on Magento, to be precise. But before purchasing one, make sure tally the costs and look for vital features such as payment gateways, integration with ERP, admin controls, customization properties, and more. Sign up for several demos before selecting one.

Too often, B2B companies don’t take the time to research the technology and dive straight into the world of eCommerce. Don’t make that mistake.

Leverage supply chain management

The emergence of eCommerce has been disruptive, not just for consumers but also for retailers, manufacturers, and distributors. There was a time when only one distributor could only access the supply chain.

However, by joining hands with multiple vendors and distributors, eCommerce retailers have managed to offer not only various products but also faster deliveries. Moreover, the consumers of today are used to having the order status on their fingertips.

Anything less than that causes immense dissatisfaction to them. As a manufacturer, wholesaler, or distributor, you must strive to give your customers an impeccable customer service. And that includes image optimization, detailed product information, social selling, a dedicated customer care team, and more.

Join hands with multiple verticals across the industry for that. Leverage supply chain management. But to manage it all, get the right B2B multi-vendor marketplace eCommerce software for the best results.

Upsell and cross-sell your customers

It is true eCommerce brings you closer to potential customers from every part of the world. But when that happens, why leave the golden opportunity to upsell and cross-sell them? B2B distributor sales reps, for instance, are masters at predicting their customers’ needs.

That is how distributors generate maximum leads and convert them to profitable transactions. However, to do that, the reps must be free of taking orders manually, and that’s only possible when the right Magento marketplace software solution is in place.

That way, they can focus on talking to customers about new product offerings and opportunities to grow their relationship with the customers. The eCommerce marketplace technology has brought a shift in the typical sales approach and given birth to a different type of relationship between the customer, retailer, and the distributor – one that should be leveraged properly.

Helps manage data

It’s a fact: manufacturers, distributors, and wholesalers have to invest in data management to be able to grow in the eCommerce space. If you don’t have the right systems in place to maintain and use data, you cannot compete in the digital world, let alone succeed.

For starters, the infrastructure must align with the supply chain function. From the mobile app, CRM, and website to shipping and warehouse – the success of your eCommerce store relies on the interconnectivity of the data collected.

Therefore, upgrade your front-end systems to ensure the best possible experience for your customers and overhaul the back-end systems for your staff. Look at any Magento marketplace software solution that can take care of all your needs, and especially help you manage data.

Conclusion

According to the B2B Ecommerce Market Report, an increasing number of are investing resources into their eCommerce stores or doing business on multiple B2B marketplaces. The scenario is favorable, and if they continue moving in the direction, the results will be phenomenal.

Online eCommerce Marketplace software

Seven Upcoming Industries for Multi-vendor eCommerce Marketplace in Middle East

The multi-vendor eCommerce marketplace landscape in the Middle East is undergoing a tremendous change. The total number of online sales in the region is expected to touch $49bn in 2021, with mobile phones becoming the most preferred source to shop online.

In the past few years, the Middle East has come in the limelight due to multiple positive developments such as younger working demographic, advanced infrastructure and high connectivity rates. Therefore, the aforementioned statistics are not surprising at all.

And, guess what? Cash on Delivery dominates the payment method for online purchases in the region. Countries like Saudi Arabia are set to become the topmost online retailer by 2020 in the B2C eCommerce market by surpassing the current trendsetter – UAE.

You may also like to read: Reasons Why You Should Have a Multi-Vendor App for Your Ecommerce Marketplace Like Amazon

Therefore, when we think of the multi-seller eCommerce platforms in the Middle East, there are many. And all of them belong to diverse industries which invariably shows that there is potential waiting to be tapped fully.

Adding to that, here are seven upcoming industries for multi-vendor eCommerce marketplace in the Middle East that are already receiving a fabulous response by consumers:

1) Laundry

This particular industry is thriving in the Middle East all thanks to the increasing urban population in the region. According to the UN Development Programme, 60% of the population is below the age of 30 and with textile and tourism booming in the Middle East, there is really no dearth of disposable income.

Laundry eCommerce solution

That’s why you have so many online and mobile laundry eCommerce shops like Smart Washr, Safleen, CleanLine and Ghasili that allow their customers to book their laundry through Android and iOS mobile apps. Simple!

2) Car rental and office leasing

The tourism industry in the Middle East is on a high. The region is not only witnessing an increasing number of people traveling to other parts of the world but also more and more people are traveling countries like Saudi Arabia, UAE, Egypt and Iran.

This upward trend has also led to a boost to car rental services in the region, which is expected to grow at a CAGR of more than 9% by 2025. Similarly, with so many startups seeing the light of the day, office rentals have become equally popular.

Dubai’s RentSher Middle East is the region’s first online platform for services and product renting, specifically targeting office leasing.

3) Restaurants

Any business related to food is a hard one to crack. Apparently Middle East has found the perfect way to do so.

According to a 2017 KPMG report on the Food & Beverage industry in the Middle East, 87% of food operators are listed on delivery apps with 60% of UAE customers using an app to order food compared to just 18% of US consumers. Such acceptance in F&B marketplace isn’t just restricted to home food deliveries, restaurants are also tasting the eCommerce flavor.

on-demand restaurant mobile app

Saudi Arabia’s first online restaurant reservation portal ‘YoTable.com’ has changed the way the way people choose to eat in the region, including splitting the restaurant options according to the national cuisines for faster decisions. The online marketplace will soon expand to other cities in the Middle East.

4) Bookstores and eLearning

A recent survey by the Arab Reading Index states people in the UAE spend 50+ hours reading while an average reader in the rest of the region spends an average of 16 hours! The number of hours vary considerably. However, it doesn’t mean there is no requirement of online book shopping.

Jarir Bookstore, a thriving eCommerce business based out of Riyadh, was initially a physical retail shop selling office supplies, books and educational aids. But by looking at the increasing demand of the millennials, it expanded its services online by adjusting to the disrupting technologies and changing consumer buying patterns.

5) Health and beauty

A 2017 PwC report states health and beauty is one of the major categories when it comes to offering multi-vendor marketplace solutions in the Middle East, constituting 48% of the pie among other categories like electronics, clothing and footwear, and furniture.

Pharmancy mobile app builder

Saudi Arabia’s beauty eCommerce marketplace Golden Scent is already breaking records. It tripled its customer base in 2018 after launching its mobile app. Moreover, it raised its portfolio by 25% after branching out to the mobile medium.

6) Travel and booking

The focus on online travel and booking in the Middle East heightened only a few years ago. The reason for the positive development is the younger, tech-savvy generation that is hooked on to their smartphones and prefer using the device to make any bookings or shop!

online appointment booking solution

More than 50% of the UAE population relies on the internet to purchase travel-related products or to plan their holiday, with Saudi Arabia (35%) coming in second on this list. Almosafer, a Saudi online tourism platform, predicts an increase in resort-based destinations, growth around religious tourism and continued momentum throughout 2019.

7) Baby care

Tapping the potential of niche markets opens up avenues for success – no matter which country or region you belong to. And one such niche market is baby care. Do you know the aforementioned market in the Middle East and Africa was worth $1174.6mn in 2016 and is expected to reach $1605.4mn by 2025?

The reasons why the market has grown exponentially in these regions is because of increased child hygiene awareness and rise in the rate of borth in the evolving countries. Mumzworld is doing an excellent job, selling clothes, toys and food for both babies and moms online in the whole of Middle East, with an inclination towards the markets in countries Saudi Arabia and UAE.

Endnotes

If you want to be a big player in the Middle Easter eCommerce spectrum, you have to adapt to the ever-changing market trends. Pay attention to what your consumers want. Leverage technology to provide the best possible multi-vendor marketplace software solution. It’s an exciting time for eCommerce in the region, make the most of it this year and beyond!

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