B2B is an online marketplace where one business system sells goods and services to other business systems. The vendors are often wholesalers or distributors. They have regular clients who are often companies that deliver to their own end customers.
In B2B commerce, the webshop is normally used as a platform for placing orders, while payments are carried out as in other B2B transactions, invoice to invoice - in other words, via bank transfer.
2020 has been a crucial year for the whole nation and the economy, but B2B e-commerce has benefited from this pandemic. Though the online business was showing good growth even before this pandemic and lockdown. From 2013 to 2019, these marketplaces, operated by manufacturers, distributors, wholesalers, and group purchasing organizations, more than doubled from $5.8 trillion to $12.2 trillion gross merchandise value (GMV) worldwide. Read more.
The covid-19 outbreak has made an impact on everything. It has changed our lifestyles upside down. Before the COVID-19 pandemic, the growth of internet users and rising awareness related to online shopping, increasing online launching of products, low price due to bulk purchase, and so on pushed people to opt for online shopping. This pandemic seems to just add benefits to the e-commerce businesses. Social distancing and staying home are expected to push consumers towards online shopping. Read the impact of coronavirus on e-commerce.
B2B e-commerce or business-to-business electronic commerce is growing faster than ever. The attractive offers and less price range as compared to the shops motivates people to shop online. Along with that, it also gives a chance to shop anything of our choice while sitting at our home. There is not a fixed time of opening and closing of shops, you can shop anytime you want.
As the Covid-19 crisis continued, people preferred buying things online rather than going to shops. 62% of consumers shop online more now than before the pandemic. Even before the pandemic, the advantages one gets by online shopping makes people buy things online. Today, 73% of millennials are involved in the B2B buying process. Seeing the figures and the continuous growth in online marketing, it can be said that B2B marketplace startups have a great future ahead.
We, at OpenGrowth, are continually looking for trending startups in the ecosystem.
If you want to know any further information about the startup ecosystem or have any mind-boggling ideas, do refer to the other blogs at OpenGrowth. If you have any suggestions, do let us know in the comment section below.
*Note: The content published above was made in collaboration with our members.
Jyotsana is very keen to express her views on new topics and wants readers to remember her through her writing. She is passionate about reading and believes that words wield the power of changing the scenario and she uses them to encourage people to the best of her knowledge.