If you gravitate toward the favorites when betting sides, you better think again when it comes to eCommerce. The business-to-business (B2B) eCommerce industry is ripe from disruption; it sits at almost $1 trillion dollars, representing almost 10 percent of U.S. retail sales and growing by roughly 15 percent annually, according to the Department of Commerce.
Nowadays, buyers are demanding more business-to-consumer (B2C)-like functionalities like customer connectivity along with plenty of options that drive worth beyond the “add to cart” option flashing in the upper righthand corner of the sometimes not mobile-friendly browser.
One would assume Amazon and Alibaba have annihilated the contest given the immense victory both eCommerce behemoths have obtained, sitting pretty at more than $1 trillion in combined market caps. However calling it quits in such markets is a gaffe as emerging trends in the B2B landscape report shocking stats which present flourishing opportunities startups shouldn’t miss.
BigCommerce conducted a poll to understand just how more than 500 international B2B companies are aligning with the new expectations for revenue growth. The findings underscore a pivotal insight within these tendencies. The analysis found that eCommerce is now a driving force in the B2B area, and entrepreneurs who do not take advantage of these tendencies will be left behind. Additionally, 41% of B2B retailers expect online sales to grow more than 25% this year and Frost & Sullivan estimated B2B eCommerce transactions will reach $6.6 trillion by 2020. In that time period, B2B companies will invest more on eCommerce technologies than online retailers do.
These statistics prove that in today’s gargantuan quest for growth, retailers will need to fully immerse themselves on electronic platforms—specifically where their clients spend the most time on mobile—in order to keep the current momentum. And by embracing community and customization to drive users to share on social media, startups have a chance to join the charge.
What we’ve learned is that marketplaces which have a firm grasp on curating and building strong social followings are then influential in forcing a sense of community across businesses and industries. A TechCrunch article states that in order to win these markets, brands must interest millennials by “turning their values and communities into cultural cachet.”
In reality, the belief that a subculture compels inclusion has subsequently led to the development of a sub-SaaS class called MaaS (marketplace for a service). This category is directed by Fancy.com, a technology firm based in New York City that currently provides a stage to over 3,000 brands.
And just like that, infinite bandwidth and merchandise lines ricochet off a platform built for breakthrough scale and shift from a tool to an experience. These end-to-end journies are fueled across multiple customer-aware touch points and supply companies the opportunity to completely immerse within an omnichannel philosophy.
Marketplace platform solutions enable a better experience for consumers who will benefit from greater choice and better pricing. Furthermore, they provide vendors more fresh exposure, consequently attracting new revenue channels and new clients as a result. And for this new era of omnichannel retailers, this means favorable economics and a chance for a better outcome.
A report by IDC Retail Insights discovered the following insights from retailers using omnichannel Advertising strategies:
• 15-35 percent increase in average trade size
• a 5-10 percent increase in loyal customers’ profitability
• a 30 percent higher lifetime value than those who shop using only one station
The pressure is on and retail behemoths such as Amazon and Alibaba will be focused on an omnichannel strategy, adapting and refining purchasing experiences for customers. They’ll look beyond brick and mortar and facilitate engagement in marketplaces, the web, mobile and social. The target is to remain in the customers’ peripheral vision on channels they trust, thereby creating a feeling of familiarity and credibility.
By the end of this year, experts have predicted that 70% of eCommerce will move from B2C and B2B models to models that focus on the individual customer encounter. And it is not slowing down, either.