B2B commerce underwent a significant revolution during the pandemic as many buyers were forced to look for alternative suppliers online. But there has been a further shift more recently, as businesses grapple with a challenging macroeconomic climate.
Prices of materials and ingredients have risen exponentially, and global freight costs have seen three-digit increases. In addition, supply chain disruptions continue to cause order fulfilment issues, leading to a 38% decline in customer satisfaction and 40% of consumers to change suppliers to outside of the UK.
Online B2B marketplaces are one means of helping businesses overcome such challenges. In fact, according to McKinsey and Company’s latest global B2B Pulse survey, B2B enterprises that utilize online marketplaces experience an average of 20% revenue growth and a 25% increase in profitability.
Technological innovation is key to improving the procurement process
The popularity of online B2B marketplaces, such as Alibaba.com, lies in their impact on the procurement process. With the click of a button, buyers of wholesale goods can browse, explore, and discover products from suppliers around the world. Such platforms can cost-effectively reach and match wholesalers and buyers, delivering a seamless solution for bulk orders.
Procurement efficiency has accelerated even further through the deployment of new technologies. These ultimately make the relationship between buyer and seller – regardless of where they are and what they sell – as seamless as possible.
Livestreaming is one such technology. It allows suppliers to showcase the benefits and quality of their products, the story of their operations, and foster relationships based on trust and transparency. And it’s a technology in high demand amongst B2B buyers. During the first week of this year’s Alibaba.com March Expo, more than 700,000 B2B buyers watched 50,000 ‘LIVE’ events and more than 60,000 manufacturers performed the same such events – an 100% increase from last year.
Virtual reality factory tours are also disrupting the B2B online marketplace space, enabling buyers to go inside a supplier’s factory from the convenience of their office, cutting out international travel whilst giving buyers assurances about the suppliers they ultimate choose.
Other disruptors of B2B ecommerce include hybrid trade shows. According to Taggbox, 34% of event organisers expect to invest more in hybrid events in the next few years. A hybrid format is beneficial for B2B buyers for various reasons, including increasing convenience and efficiency.
In addition, product customisation allows buyers to build their own personalised products with 2D and 3D design tools. This presents a significant growth opportunity for B2B buyers to differentiate their offer.
Another key innovation likely to shape B2B online marketplaces is digital sales rooms – or online, secure spaces where buyers and sellers can meet and facilitate sales. 69% of those surveyed by Wunderman Thompson said they would like to conduct their B2B online purchases in online sales rooms in future.
The shift to online is enabling businesses to source more sustainably
With climate issues now front and centre in the public sphere, it has never been more important for businesses to demonstrate their commitment to sustainability. In fact, according to Boston Consulting Group, 76% of consumers in the UK are trying to play their part in creating a more sustainable future and expect brands to do the same, with 30% of consumers either switching brands as they opt for more sustainable offerings, or positively or negatively advocating to support this shift.
However, the current macroeconomic climate means it’s never been more of a challenge for some businesses to offer sustainable products to buyers. Online B2B marketplaces are one such channel which buyers can leverage to make the transition to a more sustainable brands easier. They offer an unlimited catalogue of products from hundreds of thousands of suppliers, enabling buyers to browse a huge selection of and choose from the very best products – both in terms of quality and sustainability – for their customers.
Alibaba.com has seen a huge surge in year-on-year growth across several sustainable product categories, with refillable cosmetics (+64%), organic detergents (+58%), and eco-friendly sanitation (+21%), all witnessing double-digit growth. In addition, the number of Request for Quotations (RFQ) that used common sustainability phrases, such as eco-friendly, bio-degradable, renewable, and reusable, have increased 88%.
Ultimately, the rapid shift from offline to online B2B marketplaces and subsequent technological innovations will not only help to streamline business transactions and protect and grow bottom lines, but ensure businesses are creating a greener future for all.
