The global online business-to-business (B2B) market is expected to reach $ 6.7 trillion by 2020. Business-to-business (B2B) online retailing has been witnessing strong growth due to the rapid migration of manufacturers and wholesalers from legacy systems to open, online platforms. A recent study from Frost & Sullivan projects states that the global e-commerce market will reach $6.7 trillion by 2020. Additionally, the report suggests that the combined potential of B2B and B2C online retailing makes e-commerce the most attractive emerging market in the world.
New analysis from Frost & Sullivan, Future of B2B Online Retailing, reveals that B2B online sales will account for close to 27 per cent of total manufacturing trade, which is likely to hit 25 trillion $ by 2020. Geographically, China and the United States will lead the B2B online retailing market. The latter is anticipated to double its revenue contribution to 1.2 billion $ by 2020.
B2B online relationships are likely to move from a one-to-many to many-to-many business model. Instead of a model where one company invests and builds an e-platform for its suppliers, the preference will be for a solution in which anybody integrates an e-procurement process and facilitates the purchase of goods online.
Frost & Sullivan’s Visionary Innovation Group Analyst stated that in private industrial networks, where specific companies come together to exchange products and public market places that are employed for on-the-spot purchasing, have gained prominence over the last decade. With businesses buying more than selling online, these seller-driven B2C-type open public networks will help provide more visibility and storefront capabilities to sellers.
Retailers however face certain challenges while implementing B2B e-commerce strategies. Unlike the B2C setting, in the B2B e-commerce setup, prices are variable and order volumes are high and of a wide range, necessitating a flexible shipping and logistics solution. Tax and regulatory concerns also impact sales highly and providers typically employ large staff whose only responsibility is delivering products and services within these restrictions.
Moreover executing marketing or educational initiatives in the B2B setting is complex, as clients need to understand the way products work and interact with other systems that they already have or are considering for purchase. The black box effect, wherein a customer buys a device without a real interest in learning how it works, barely exists in the B2B context.
Nonetheless, with technological advancements facilitating the procurement of goods on the move through smartphones and tablets, business use of online platforms will rapidly grow. The emergence of cloud platforms that offer more scalability, both as a software and infrastructure service, too is pushing businesses towards B2B online retailing.
If you are a B2B company it is perfectly understandable that the industry has all potential and offers tremendous opportunity that give prosperous to both its investors and companies.
New analysis from Frost & Sullivan, Future of B2B Online Retailing, reveals that B2B online sales will account for close to 27 per cent of total manufacturing trade, which is likely to hit 25 trillion $ by 2020. Geographically, China and the United States will lead the B2B online retailing market. The latter is anticipated to double its revenue contribution to 1.2 billion $ by 2020.
Frost & Sullivan’s Visionary Innovation Group Analyst stated that in private industrial networks, where specific companies come together to exchange products and public market places that are employed for on-the-spot purchasing, have gained prominence over the last decade. With businesses buying more than selling online, these seller-driven B2C-type open public networks will help provide more visibility and storefront capabilities to sellers.
Retailers however face certain challenges while implementing B2B e-commerce strategies. Unlike the B2C setting, in the B2B e-commerce setup, prices are variable and order volumes are high and of a wide range, necessitating a flexible shipping and logistics solution. Tax and regulatory concerns also impact sales highly and providers typically employ large staff whose only responsibility is delivering products and services within these restrictions.
Moreover executing marketing or educational initiatives in the B2B setting is complex, as clients need to understand the way products work and interact with other systems that they already have or are considering for purchase. The black box effect, wherein a customer buys a device without a real interest in learning how it works, barely exists in the B2B context.
Nonetheless, with technological advancements facilitating the procurement of goods on the move through smartphones and tablets, business use of online platforms will rapidly grow. The emergence of cloud platforms that offer more scalability, both as a software and infrastructure service, too is pushing businesses towards B2B online retailing.
If you are a B2B company it is perfectly understandable that the industry has all potential and offers tremendous opportunity that give prosperous to both its investors and companies.
No comments:
Post a Comment