What is B2B Marketplace – How it improves your business to next level:
Business to business is an online place where the two main market stakeholders (i.e. buyers and sellers) meet to communicate with each other and do business transactions. It is composed of a number of participant companies in a form of community. B2B marketplace allows its users to perform different kind of business related operations over the internet. It also helps to increase any company’s business effectively.As we know that there are two key features which show any company’s performance these features are amount of revenue increased and cost of saving. Both of these features will improve if a company uses online marketplace for its business operations.
Advantages of Business to Business Marketplace:
Here are some of the advantages of using this type of marketplace for your business operations:
1- It contains a large number of buyers and sellers:
By using B2B portal for business operations a company can communicate and do collaboration with number of online buyers and sellers. It has been noted that most of the online B2B marketplace has more than thousand members. This gives chances to the companies to expand their businesses by finding new customers and suppliers of different countries and culture. This will help companies to grow their business and to increase their returns on investments.
2- It helps buyers to take decisions:
A B2B market place helps buyers a large extent to give a careful consideration about any product in a market. So this ability of a b2b helps buyers to make quick buying decisions. A survey shows that 47 percent of buyers visited a b2b portal without having necessary information needed to purchase a product had ended up purchasing that product. This shows that a B2B market place increases buyer’s conversion rates dramatically.
3- It helps to improve supply chain:
Another very important advantage of b2b portal is that it helps to improve a company’s supply chain efficiency. Due to this companies can receive deliveries in less time. It also reduces amount of inventory at a time company can have and also allows companies to bring their products to the market in less amount of time. All of these advantages can be achieved by the implementation of an ecommerce solution.
4- It has more strong marketing potential:
With B2B portals it is easier for companies to market their products. There are different ways to market products in a B2B which includes “share, like, re-tweet” or forward messages. These techniques also require less amount of money unlike television and newspaper advertisements.
5- It increases sales and reduces overhead cost:
The ecommerce solution integrated with B2B websites contains all the modules related to sales like quotation, negotiation, billing and shipment. This ecommerce solution reduces sales cycle and also cuts cost of processing. Also computer based systems has advantage to minimize human errors which are part and parcel of paper based systems.
6- It makes buying process easier:
Most of E-commerce portal provides electronic procurement system which helps in conducting transactions between buyers and suppliers over the internet. According to a recent survey it has been estimated that a midsize company can save 2 million dollar a year by the help of this system. It also helps to improve over all supply chain performance and reduces the overall cost of products to sell. Due to this advantage buying process becomes easier.
7- It helps small companies to increase sales:
A recent survey shows that b2b system helps small companies which have less than 20 employees to increase their sales. This is because due to online marketing a company can meet large number of buyers of different nationalities and origins. This helps to interact with a totally different market segment which cannot be done without online B2B marketplace.
The list of advantages here does not mean that the other forms of online marketing don’t deserve to be used by the companies. But, rather these advantages shows that online B2B marketing should be integral part of any company’s marketing strategy in collaboration with other marketing techniques.Also it has to be noted that it is not easy to find the right online B2B website because it requires a lot of study and research. But this is a true fact that a successful finding of online B2B marketplace can increase company’s earnings and decreases overhead costs.