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What is a B2B Marketplace?
A B2B marketplace brings together many B2B buyers and sellers on one website so that they can perform transactions. B2B (business-to-business) denotes transactions between businesses, so the shopping experience of B2B marketplaces must meet the supply and purchasing needs of businesses.
B2B marketplaces can be described in different ways. They are sometimes referred to as B2B procurement websites, sourcing portals, purchasing platforms, multi-vendor marketplaces, supplies catalogs, and more.
Like their B2C (business-to-consumer) counterpart, B2B marketplace platforms allow sellers to reach a wider audience and expand beyond their traditional footprint. A B2C marketplace like Amazon hosts retailers who sell to end-consumers, but B2B online marketplace sellers can be distributors, retailers, brands, or manufacturers selling to other businesses by units or in bulk, using a B2B wholesale marketplace.
B2B marketplaces can be global, offering a wide variety of products (Amazon Business); vertical, offering many of the same types of products (SupplyCore); or horizontal, offering different products but with similar characteristics (e.g. used goods, like thredUp).
A common type of online B2B marketplace is a one-to-many marketplace. Supplier-oriented marketplaces have many buyers but few sellers. An example is a corporation managing quotations or proposals from a large pool of buyers. Buyer-oriented marketplaces have many sellers and a single buyer like a government or a school board. A wholesale B2B marketplace provides an opportunity to sell and buy products in bulk. Global marketplaces target customers around the world, while local marketplaces are confined to a certain area.
Sourcing, procurement, and vendor management (SPVM) professionals love the versatility of marketplaces. Buyers can fulfill a variety of their purchasing needs with a single onboarding process and maintain a central record of purchases and quotes. Sellers can increase their revenue by reaching customers they might otherwise miss, and marketplace operators can make money from commissions, subscriptions, listing fees, and more.
Business Benefits of a Multi-Vendor B2B Marketplace Platform
Change the Way You Do BusinessLearn More About OroMarketplace Features
Think beyond selling directly to customers. Start facilitating transactions between third-party sellers, wholesale suppliers, retailers, and their customers. Efficiently grow your marketplace by adding vendors, products, and services. Enrich your core offerings without investing in additional inventory, marketing, or manufacturing and warehousing facilities. Move beyond linear selling relationships and leverage the power of partnerships.
When you see business through the lens of a B2B marketplace platform, you’ll see new opportunities and look at your entire organization differently. Harness the power of the B2B eCommerce marketplace and your digital transformation will completely transform your business model and operations. Prepare now for the new market and new ways of doing business.
Create Your Own EcosystemLearn More About OroMarketplace Features
Don’t be walled in by the limits of your upstream suppliers and the constraints of your downstream customers. See beyond to a complete ecosystem where technology vendors, financial service providers, complementary and even competing vendors engage in commerce with new participants to the benefit of all.
You’ll greatly improve customer satisfaction through expanded offerings – becoming the first place customers will search when they start their buying journey. Transform your value chain into a rich value distribution fabric by removing friction, solving problems, and bringing participants together in a 24/7 ecosystem that scales and evolves to meet their needs.
Enjoy New Revenue StreamsLearn More About OroMarketplace Features
Generate new revenue streams from commissions, service fees, advertising, technical service offerings, logistics services, and even payment processing without increasing your overhead costs. Once your B2B marketplace platform is established, you can even expand your brand offerings into new niches identified within the marketplace and benefit from new sources of revenue you didn’t even know existed.
A B2B eCommerce marketplace allows you to leverage existing suppliers and generate additional profit for you as you help them grow their sales. You can even generate revenue when your competitor makes a sale. Your eCommerce website becomes an in-demand destination: it allows you to sell services, subscriptions, and build relationships. It’s easier to grow and expand into a new market. Eventually, you’ll unlock greater financial rewards.
B2C and B2B Marketplaces are Not the Same
B2B marketplaces are built for the needs of B2B eCommerce. B2C solutions just aren’t up to the challenge of serving buyers and sellers in a marketplace for B2B. It takes a platform built for B2B eCommerce. Unlike their B2C counterparts, business-focused marketplaces support the complexities of B2B sales through:
- Bulk ordering and checkout capabilities
- Quote, RFP, and negotiation workflows
- Purchase order acceptance functionality
- Pricing, products, and marketing personalization
- Unique pricing with tiered or quantity discounts
- B2B-friendly payment types and terms
Why Choose Oro for Your B2B Marketplace?
Multi Organization Capabilities
Why place limits on how well your multi-vendor marketplace does? Oro’s B2B marketplace platform is built with enterprise-grade flexibility in mind. Easily scale up to accommodate new suppliers, product data, and customers without affecting marketplace performance.SEE FULL FEATURE LIST OF OROMARKETPLACE
Built for B2B
Based on the same robust architecture as the #1 B2B eCommerce platform, OroCommerce, OroMarketplace simplifies the complexities of B2B selling. Gain the flexibility to configure inventory management, order data, and separate seller accounts with multiple permission levels. Users will love the convenience of a marketplace built specifically for B2B transactions.SEE FULL FEATURE LIST OF OROMARKETPLACE
Powerful Pricing Engine
Support for complex pricing rules ensures every order and every quote is priced properly. OroMarketplace supports various pricing strategies required by operators, sellers, and diverse B2B marketplaces, types, verticals, and monetization models. Showcase only the relevant prices to the correct buyer.See Full Feature List of OroMarketplace
Streamlined Negotiation Capabilities
Whether you’re a manufacturer engaging in a wholesale B2B marketplace or distributing products with value-add services, we got your ordering needs covered. Vendors and buyers will love the ease of the automated Bid to Quote to Order and Request for Proposal processes. Digitize the negotiation process and speed up the sales cycle.See Full Feature List of OroMarketplace
Multiple Payment Options
B2B marketplaces require diverse payment options, workflows, fee-splitting, and more. OroMarketplace lets you support credit, debit, ACH, terms, and all other popular forms of making payments. Digitize the credit approval process to the delight of sellers and buyers.See Full Feature List of OroMarketplace
Streamline your processes integrating with multiple systems and businesses. Readily available APIs allow 2-way instantaneous data sync between your B2B marketplace solution, ERP, CRM, WMS, 3PL. Use Oro’s native commerce CMS made for B2B marketplaces and support your buyers’ front-end experiences or connect via our APIs to any CMS of your choice.See Full Feature List of OroMarketplace
Flexible and Customizable
OroMarketplace conforms to how you want to build and manage your multi-vendor marketplace. We never ask you to change how you do business to fit the software. Open-source software is completely customizable – so you can accommodate new markets or respond to changes in customer demand.See Full Feature List of OroMarketplace
B2B eCommerce Marketplaces Create Value for All Players
With B2B marketplaces, everyone wins. Buyers get a frictionless purchasing experience and sellers enter markets they may not even know exist. A marketplace B2B destination makes everyone’s job easier.
Marketplaces are one of the greatest disrupters to B2B eCommerce in the last 5 years. Access markets that otherwise represent walled-off gardens.
Enrich your offerings through complementary payment, credit, and logistics services while maintaining your core competency.
Streamline your provision processes, take advantage of a wider selection of suppliers and products, and destroy the perception that procurement is a bottleneck.
Frequently Asked Questions about B2B Marketplaces
What is a B2B marketplace?
B2B sellers and vendors use the marketplace to perform online transactions. B2B marketplace portal allows sellers and buyers to work together by helping sellers and wholesale dealers bring buyers. As marketplaces grow, they become stronger, capture new markets, and attract more seller and customer traffic. At the same time, a B2B marketplace is different from business-to-consumer (B2C), consumer-to-business (C2B), or consumer-to-consumer (C2C) marketplaces.
One aspect of selling to businesses is that B2B transactions are higher value, and there are more of them. Purchases may require a series of approvals and compliance with legal and regulatory requirements. The ordering process is different, too: B2B buyers use shopping lists (instead of shopping carts) for order creation and re-ordering.
What are the types of B2B marketplaces?
B2B marketplaces can sell products, services, or bookings. They can also be divided into vertical, horizontal, or global. Vertical marketplaces tend to target a narrow audience in a specific industry, such as finished parts, services, or raw materials. Horizontal marketplaces sell products across industries. A global marketplace targets customers around the world, while a local marketplace is localized to a certain area.
There are other terms used to describe marketplaces. The term pure-play marketplace refers to businesses displaying, selling, and fulfilling products online without an offline presence. Supplier-oriented or wholesale marketplaces describe scenarios with few suppliers but many buyers. A buyer-oriented or eProcurement marketplace is the opposite, having many sellers but few buyers. However, the few buyers are usually large corporations or government-affiliated clients.
What are the monetization models of B2B marketplaces?
Marketplaces operate over diverse monetization models. A marketplace B2B strategy may make use of one or a combination of different monetization options. The commission-based model is a popular one, where sellers pay the commission fee per product dictated by the marketplace operator. The membership or subscription-based model usually charges a monthly or yearly cost to the seller, while a listing fee model charges the seller for submitting a product to the platform.
What are some examples of successful B2B marketplaces?
Two famous global B2B marketplaces are Alibaba and Amazon Business. However, the marketplace trend is quickly spreading to different verticals, ecosystems, and locations.
For example, Diplonova is a French-only service marketplace targeting small businesses. FoodMaven is an example of a vertical marketplace. It’s an online food services marketplace aimed strictly at the restaurant and hospitality industry. A horizontal marketplace sells a specific type of product or service to multiple industries. Grainger, a popular B2B distributor, entered the B2B marketplace space with Zoro, a horizontal marketplace for business supplies, equipment, and tools.
How do you set up a B2B marketplace?
To build a successful online B2B marketplace, you need to carefully analyze your business niche and market needs. After all, a marketplace will only be successful if it brings real value to customers. Start with the basics, such as performing research and surveying your customers. This will help you formulate the vision and key differentiators for your marketplace.
Once you identify what you want to achieve, you can explore the different monetization models and features you want to include in your marketplace. Next, you’ll need to learn how to build a multi-vendor marketplace and create a minimum viable product (MVP). An MVP is a bare-bones model of your marketplace designed to further collect feedback, validate the need for your marketplace, and add improvements iteration after iteration. The MVP approach offers you the flexibility to add more features or change the direction based on what your customers want before it’s too late. Either way, your B2B marketplace management system needs to be flexible enough to support you every step of the way.
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