When it comes to talking about shopping nowadays, millennials are the most certain to think of online platforms instantly. E-commerce is indeed the ongoing craze that does not seem to lose its charm any soon and is indeed the pride of the B2C sector right now. Manual dealings, physical payments, offline shopping, paper usage, and similar offline activities have rapidly faded in the Business to Commerce industry. However, B2B was posing to be behind the race in the implementation of this concept until lately.
There were days when B2B or Business to Business was not under much limelight. But then, things jiggled surprisingly during the pandemic of 2020 that brought an unexpected rise in this sector. A sudden shift to the B2B sphere was being observed owing to heavy demands by the buyer that made B2B companies get in action like never before. People are enthusiastically asking for digitization, innovation, and online functioning of even B2B businesses now. This is paving a promising path and need for the establishment of the websites marketplace.
If you are craving to know about what’s and how’s of building a marketplace for B2B Ecommerce, take this post as a sign. Or, if you want an exciting reason to proceed with this post, how about knowing that Canada’s B2B annual growth rate is projected to be 18.30%? In other words, the expected market volume in Canada’s B2B E-commerce is 18.97 USD Trillion by 2028.
Have these numbers bowled you over? Well, read on to fetch more productive details and give yourself the confidence to get going in this opportunistic market.
Let’s know some terms first!
Before diving into the fun part of how to build an E-commerce marketplace, it is wise to know the relatable terms for better understanding.
- B2B Ecommerce-It is the electronic way of doing business to business trade concerning goods and services. Meaning thereby that businesses trade with each other through online mode under this concept. Even promotions are done through creative websites marketplace here for a quicker and larger reach. B2B businesses are usually of the following types.
- Wholesalers where the retailers buy goods in bulk at a price lower than the market value for ultimate consumers. Clothing, packed food, medical products, cosmetics, etc. are a few of the many examples of this type of B2B business.
- Manufacturers where firms buy goods directly from the makers; the buyers here can be other manufacturers, wholesalers, or even retailers in some cases. The auto industry is the best example of the manufacturer to manufacturer dealing here where one maker produces some parts and the other one either produce more parts or assembles them.
- Distributors where the middlemen take charge of the goods to supply them to other buyers. The most prominent example of this type of B2B Ecommerce would be Amazon and eBay where they take goods from manufacturers or other sellers and distribute them to other retailers or businesses.
- Marketplace- It is that space where a buyer and seller would close the deal agreeing to proceed with business to business or B2B dealing with each other. Yes, it is a lot more similar to a B2C marketplace that promotes trading between a seller and consumer. However, the difference is that in B2B, the order will be in bulk and the payment will be huge. Thus, it will need a scheduled, systematic, and genuine protocol for conducting business according to the convenience of both parties.
How to start a marketplace for B2B Ecommerce?
Be it about a single or multivendor marketplace Canada, it is utterly crucial to know the fundamental steps for a successful experience. Here is how you can begin with the creation of the B2B marketplace smoothly.
- Look for the need of the market
There are endless options for what you wish to do as an enterprise. Begin by shortlisting your options like whether you are aiming for a product or service, an existing product or a new development, and so on. As a beginner choosing something where somebody else is already the market’s favorite can be both difficult and exciting; choose wisely. Else, you can come up with a solution for an unattended problem.
- Know your strengths and weaknesses
It will be crucial to know what you excel in and what needs improvement. This will help in planning things accordingly and provide you with an insight to know who to hire, what to make, how to improve, where to invest funds, and so on. Proceed only if things seem manageable and practical; otherwise, you may feel trapped for not having enough expertise, staff, funds, or other resources.
- Identify who you wish to partner up
Once you have identified your target market and planned your finance plus resources, you will be almost ready to get yourself another business partner. This is where your B2B marketplace procedure comes into action and becomes different from the B2C sphere. It can be a wholesaler, manufacturer, or another distributor. Weigh the pros and cons of each B2B type and finalize the one that matches your needs and can help you in achieving your business goals.
- Build your presence at online portals
Since it is all about building a marketplace for your Ecommerce B2B enterprise, you will certainly need to have an online mechanism to deal with others. The best ways are to have a website, promotional emailing, and get published at prominent online listings. Either create an online presence from scratch with professional IT help or you can also checkout leading online solutions for a marketplace like Oro, Spryker, Mirakl, and more.
- Improvise and take feedback
You can proceed by introducing MVP or Minimum Viable Product to observe the acceptance of your product or service in the market. Try to improve or fill the lacunas to satisfy the buyers if needed. Feedback is very crucial as it will help you in knowing the market behavior and chances of growth or halt. Do not forget to include everything in the feedback one at a time like preferred payment, transaction type, product viability, and more.
Voila! You are done with building a marketplace for your E-commerce B2B enterprise!