Nov 11, 2021
Business-to-business, i.e. B2B is electronic commerce (E-commerce) in which products, services, or information are exchanged between businesses rather than between businesses and consumers (B2C). A Business-to-business (B2B) transaction occurs when the two businesses, such as online retailers and wholesalers, conduct business together. Every organization benefits in the same manner throughout most B2B business models, and they typically have similar negotiation leverage. B2B E-commerce can take many different shapes. Here's a rundown of some of the most common B2B E-commerce models.
B2B e-commerce refers to an online transaction in which both sides are companies. In other words, a B2B transaction occurs when a company sells products or services to another company, which is its customer. B2B enterprises, like any other type of business, come in a variety of shapes, sizes, and levels of sophistication. They can cover a wide range of company types and industries, from accountancy, legal, and digital services to physical items including machinery, equipment, and consumer goods.
According to Facts and Factors [226+ Pages Report], the global Business-to-Business E-commerce market was valued at roughly USD 7.35 Trillion in 2020 and is predicted to create revenue of roughly USD 18.57 Trillion by the end of 2026, with a CAGR of roughly 18.70% between 2021 and 2026.
Business-to-Business E-commerce Market: Growth Factors
The COVID-19 epidemic shifted consumer preferences toward online buying, opening up new opportunities. The B2B e-commerce business outlook has been impacted by a growth in the number of orders, changes in customer behavior, supply chain disruptions, and the closure of physical storefronts. While retail sales fell in 2020, e-commerce sales grew significantly. Several B2B companies are increasingly concentrating on bringing their customers online.
Smartphones are becoming more common, and internet penetration is expanding, opening up new opportunities for industry growth. The increased popularity of B2B e-commerce platforms has resulted from the simplicity of doing business and the ability to check inventories, see orders, and make payments on mobile phones. Furthermore, as the market becomes more competitive, many organizations are turning to online business strategies to acquire a competitive advantage.
In an economy that is progressively becoming digital, E-B2B has a strong use case to resolve traditional Business - to - business retail enhance the end-consumer experience and supply-chain capabilities by resolving the pain points of intermediaries in the traditional B2B and unorganized supply chain.
Impact of Covid-19 on Business-to-Business E-commerce Market
The market is highly fragmented on a global scale, with a mix of small, medium, and large organizations transferring their operations online. As a result of the epidemic, numerous businesses have turned to internet platforms as an alternative to meet customer demands. The COVID-19 epidemic is likely to continue to have an impact on how businesses operate in the long run, with most B2B vendors opting for online commerce as their preferred method of doing business.
Due to the rapid move from brick-and-mortar purchases to online retail platforms to limit the danger of coronavirus infection during human interaction, the COVID-19 pandemic has resulted in considerable development in the e-commerce business.
COVID-19 had a significant impact on the e-commerce business in early 2020. Existing customers' behaviors have transformed significantly as a result of the shutdown in nations such as Germany, the United States, Spain, Italy, India, China, and Russia. Due to the restrictions on public gatherings, online buying is preferred during this time. Although social interactions are also migrating Business-To-Business (B2B) and online conversations are going to take place technologically, millions around the world are flocking to the internet as a consequence of social alienation. According to e-commerce industry analysts, this has positively influenced the business, with some companies reporting a significant boost in product demand.
Top Market Players in Business-to-Business E-commerce Market
For More Research Insights, Read Business-to-Business E-commerce Market Report