Business today is more technologically and digitally driven than ever before, with various applications and devices re-shaping the way companies do business with their consumers and with each other.
So many daily processes and transactions are now done virtually, regardless of industry, and the IT industry is no exception to this. The rise of eCommerce is already well underway, as global marketplaces are being digitally transformed.
ECommerce refers to the buying and selling of goods or services using the Internet and the transfer of money and data to execute these transactions. It is often used to refer to the sale of physical products online, but it can also describe any commercial transaction facilitated through the Internet. Ecommerce found its humble beginnings in the 90s when a man sold a CD by the band Sting to his friend through his website NetMarket but has grown immensely since.
The global e-commerce market size was valued at USD 6.64 trillion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 18.7 percent from 2021 to 2028. One of the reasons for this colossal growth is the existence of business-to-business (B2B) marketplaces, which is a type of eCommerce platform that brings together B2B sellers and buyers and enables them to do business in one place online.
“The impact of the online marketplace model cannot be understated, as it redefines the business relationship between B2B buyers and sellers,” said John Street, CEO, Pax8, a pioneer in developing a service for global Managed Service Providers. “B2B marketplaces allow us to streamline and simplify processes to make it easier for buyers and sellers to buy, support, and bill services, along with other benefits that have driven their recent growth.”
Currently, 75 percent of B2B purchases are already made online, and more and more businesses are leveraging online channels to conduct product sourcing and procurement. Most consumers use B2B Ecommerce marketplaces every day, with Amazon and eBay being some of the most notable.
Pax8 features a standardized user interface and easy-to-use seller portal, where a business can simply load their information and product to get their online business up and running.
“The best B2B marketplaces go beyond basic reselling and integrated product management, CRM, and payment solutions or services removing a lot of the expensive and time-consuming work that needs to be done,” Street said. “In order to reduce costs and increase end-customer satisfaction, MSPs need to change the way they’ve been doing business and eliminate as much friction as possible.”
These B2B marketplaces also give MSPs a place to expand their customer base and reach out to small and medium-sized enterprises that may have gone unnoticed prior.
B2Bs allow MSPs to display their products in different languages and integrate translation tools or services to the platform. In this way, wholesalers, manufacturers, and MSPs can have the ease to access a wider range of audiences and develop new contacts all over the world, without the need for becoming an expert in cross-border trade themselves.
“Quality B2B marketplaces allow MSPs and other businesses to improve their customer service and loyalty by helping facilitate connections and conversations with their buyers,” Street explained. “Simplified and digitized solutions allow MSPs to manage their relationships in a more efficient way and timely manner, meaning less time spent on fielding leads and orders over phone and email, allowing for more time to be allocated to business growth and consumer satisfaction.”
Overall, while the opportunities that B2B marketplaces present are vast, the competition is quickly getting fiercer as more parts of the globe shift to technology-driven business. As the world continues to become increasingly digital, strong relationships between MSPs and their end customers will be essential for any business looking to keep up with their competition and their consumers’ expectations. And because of this need to find and grow these relationships, B2B marketplaces that make eCommerce simple for enterprises will also flourish.
Arti Loftus is an experienced Information Technology specialist with a demonstrated history of working in the research, writing, and editing industry with many published articles under her belt.
Edited by Luke Bellos