If you want to create a B2B marketplace like Amazon, you need to know a few things. Here is a comprehensive manual that will show you the ropes.
The Covid pandemic exposed the world to a new way of life, finally drawing attention to a highly profitable B2B market. Interestingly, eCommerce platforms had been largely ignored for some time, with only a few major players such as Amazon and Alibaba reaping the benefits. In the past, creating such a system was a time-consuming and labor-intensive process.
As e-commerce becomes more popular, an increasing number of people are wondering how to start their own B2B marketplace. Fortunately, advanced technology is now widely available and has greatly streamlined the process. In this article, we’ll talk about B2B markets and walk you through the process of creating your own online store. First, let’s dissect the concept of a business-to-business marketplace.
What is a B2B marketplace?
As the name suggests, B2B (business-to-business) marketplaces are online meeting places for businesses to conduct transactions with one another.
Most of us are probably familiar with B2B marketplaces like Amazon, Alibaba, Rakuten, etc., and may have even placed an order with one at some point. In a nutshell, the purpose of business-to-business platforms is to facilitate communication between businesses and their clients, thereby enhancing the quality of both the purchasing and receiving processes.
There are two types of business-to-business (B2B) marketplaces, each of which is further broken down into several categories.
B2B marketplaces based on business type
These platforms can be further broken down into:
- Vertical B2B marketplaces: They offer services tailored to specific types of businesses.
- Horizontal B2B marketplaces: They offer services to different types of businesses.
B2B marketplaces based on the business model
The following subcategories are included in this group:
- B2B service marketplaces: They offer solutions to business problems by providing needed services.
- B2B product marketplace: They facilitate the selling of products by connecting different businesses.
- Hybrid marketplaces: These marketplaces serve as platforms for exchanging goods and services.
Top 6 B2B marketplace projections in 2022
Yes, we did just say that this industry is massive, but how big exactly are we talking about? Consider the following illuminating data.
- Approximately 80% of the world’s B2B market is based in Asia. About 27.5 trillion yuan can be attributed to the Chinese market alone.
- Experts put the value of the US business-to-business market at $6.7 trillion.
- Business wire predicts the B2B market will generate $21 trillion in annual revenue by 2027.
- Statista compared business-to-business (B2B) and business-to-consumer (B2C) platforms and found that while the former has a smaller market, the latter has greater potential for profit.
- In 2021, the business-to-business market was estimated at USD 6,883.47 billion; between 2022 and 2030, that number is projected to rise to USD $9,509.89 billion, or 19.7 percent.
- In the past two years, the number of B2B platforms has quadrupled, and business-to-business transactions are predicted to grow by 130 percent.
A step-by-step strategy to start your B2B marketplace
To help you make the most of the online shopping industry’s potential, we’ve put together this easy-to-follow guide to creating your own B2B marketplace.
Pick your market
By starting your business in a specific niche, you can avoid the pitfalls of trying to manage too many different markets at once and instead concentrate on growing your existing one.
Pick a Model
Now that you have a better understanding of the available models, you can make an informed decision about which one is best suited to your industry and long-term goals.
Define the main features
The features of your platform, both the fundamental and the specialized ones, make up its functionality. But you’ll need to decide on the key features to integrate into your B2B platform.
Find a development partner
To create a minimum viable product, test your platform for bugs, and figure out what technologies to use, it’s best to hire a development team.
Build demand and supply
The best way to draw customers to your site is to offer goods and services that are in demand. This also aids in deciding whether or not your marketplace will specialize in offering a single product.
Ensure platform liquidity
Determine whether or not your customers can get the goods and services they need on your platform by measuring its liquidity. Three key indicators—density, demand and supply ratio, and category concentration—are necessary for monitoring your liquidity.
Identify your value
Learn your platform’s network effect, branding, and user-friendliness to gauge its marketability and compatibility.
The business-to-business (B2B) market is expected to expand at a rapid clip in the future. New, low-cost entry points into the market have become available as a result of technological developments in the industry. You can avoid the tedious steps involved in launching your B2B marketplace by working with a custom software development company.