How To Build The Best Online B2B Marketplace Platform?

How does one start a successful online B2B marketplace platform? Here are the precise steps you would like to create b2b marketplace example B2B marketplace for businesses.

B2B marketplace platform is often a profitable marketplace business model. Because all the transactions that are carried through the marketplace tend to be long-run and lucrative transactions, today, you’ll learn even the tiny details about building an online B2B marketplace so that you’ll reap the rewards.

What Is Online B2B Marketplace?

An online B2B marketplace is a digital platform where businesses buy and sell products or services to other businesses. It facilitates transactions between businesses, offering a wide range of products, services, and suppliers. These marketplaces streamline procurement processes, foster collaboration, and expand business networks in a digital market.

How Does Online B2B Marketplace Software Work?

Unlike the B2C Marketplace, an online B2B marketplace connects businesses. The freelancing platform Upwork and the eCommerce vendor marketplace Alibaba are samples of B2B marketplaces.

However, now many marketplaces available in the online market are hybrids of B2B and B2C. Sellers on Etsy/Amazon or other marketplaces can target retailers to sell their products in bulk. Some even host on the holiday rental marketplace Airbnb, which mainly targets consumers. At an equivalent time, they will offer accommodation for business travelers.

The great thing about B2B platforms is this: you would like fewer users because B2B transactions tend to be long-term arrangements.

On the opposite hand, if your marketplace is in a longtime industry, it is often hard to lure B2B users to use a replacement, competing platform. After all, businesses tend to stay in their existing systems. But as long as you’ve got an excellent offer, you’ll grow your marketplace with the proper marketing strategy.

Top 4 Benefits of B2B Ecommerce Marketplace Platform

1. Cost Reduction

Lowering operational costs is crucial for profitability.

B2B ecommerce helps businesses reduce costs by eliminating the need for physical storefronts, minimizing overhead expenses, and streamlining processes. Automation and digital transactions reduce manual labor and errors, allowing companies to operate more efficiently. By cutting costs, businesses can increase their profit margins and allocate resources to other areas, such as product development or marketing.

2. Increased Reach

Expanding market reach is vital for growth and revenue diversification.

B2B ecommerce allows businesses to reach a global audience without the limitations of geographical boundaries. This expansion opens up new markets and customer segments, increasing the potential for sales and diversifying revenue streams. Businesses can connect with suppliers, distributors, and customers worldwide, leading to greater opportunities for growth.

3. Improved Efficiency

Streamlining operations through automation directly impacts productivity.

Ecommerce platforms automate various business processes, such as order management, inventory tracking, and customer relationship management. This automation reduces the time spent on manual tasks and minimizes errors, enabling employees to focus on more strategic initiatives. Improved efficiency leads to faster turnaround times and better service delivery, enhancing overall business performance.

4. Better Customer Experience

Enhancing customer satisfaction can lead to repeat business and loyalty.

A positive customer experience is essential for retaining clients and encouraging repeat purchases. B2B e-commerce platforms can offer personalized experiences, such as tailored product recommendations, flexible payment options, and efficient customer service. Satisfied customers are more likely to return, resulting in increased sales and long-term relationships.

Top B2B Online Marketplace Companies Examples

1. Alibaba – Best B2B Marketplace Software

It is one of the largest global B2B ecommerce platforms that originated in China, connecting manufacturers, wholesalers, and buyers from around the world. It serves businesses looking for bulk purchasing and product sourcing. With over 40 million active global users and around 400,000 daily product inquiries, it is one of the largest online B2B marketplaces. It caters to both small business owners and mass wholesalers. Moreover, it caters to a wide range of categories ranging from medical devices to the least bought household items. 

Competitive Analysis Overview

• Strengths – It boasts a diverse network of manufacturers, wholesalers, and buyers. It has a comprehensive product selection and a large number of verified suppliers.
• Market Share – As one of the pioneers in B2B e-commerce, Alibaba holds a substantial share of the global market, with a dominant presence in China and significant reach across Asia, Europe, and North America.
• Unique Aspects – Alibaba offers trade assurance, which provides buyers with secure transactions, and a range of tools like supplier verification, RFQ (Request for Quotation), and customized sourcing solutions.

2. Amazon Business – Best B2B Marketplace Platform

It is the B2B arm of Amazon, offering businesses an extensive range of products with features like bulk discounts, procurement tools, and invoicing that primarily dominate the US market. It reached an annualized gross sales of 35 billion dollars in 2023. It has over 6 million customers, including 96 of the Fortune 100 companies. Their product catalog spans millions of items, and the platform supports over 300 million active customer accounts globally.     

Competitive Analysis Overview

• Strengths – It leverages Amazon’s robust infrastructure and vast product assortment to provide an end-to-end B2B procurement solution. It offers features such as bulk pricing, procurement workflows, and integration with third-party procurement systems.
• Market Share – Amazon Business is rapidly gaining market share in North America and Europe, benefiting from Amazon’s brand recognition and established logistics network.
• Unique Aspects – The platform’s integration with Amazon’s extensive delivery capabilities, coupled with business-specific features such as purchase analytics and multi-user accounts, makes it a popular choice for B2B buyers.

3. ThomasNet – Top Online B2B Software Marketplace

A well-known industrial B2B marketplace that connects manufacturers and suppliers in North America. It focuses on providing sourcing solutions for industrial products and components. It currently has over 1.3 million active users and is growing at the rate of gaining 10,000 new subscribers every month. Every two seconds these industrial buyers, engineers, and MROs source new suppliers and products from 70,000 categories containing 500,000 North American manufacturers and 7.8M product listings – and growing. 

Competitive Analysis Overview

• Strengths – ThomasNet focuses on industrial products and services, providing an extensive supplier directory for engineers, procurement professionals, and manufacturers.
• Market Share – It holds a leading position in the North American industrial B2B market, with a focus on providing sourcing solutions for the manufacturing sector.
• Unique Aspects – Its in-depth product catalogs, engineering specifications, and industry-specific search capabilities make it unique among B2B platforms that serve the industrial sector.

Top 8 Online B2B Business Models

1. Wholesale Model

Businesses purchase products in bulk from manufacturers or distributors and sell them to retailers or other businesses at a markup.

Key Statistics:

• The global wholesale e-commerce market was valued at approximately $7.6 trillion in 2020 and is projected to reach $12 trillion by 2027, growing at a CAGR of about 7.3%.
• More than 80% of wholesalers are expected to adopt digital selling methods in the next few years.

Future Growth Potential:

• The rise of digital platforms is transforming traditional wholesale practices, enabling better inventory management and data analytics.
• Increased demand for fast delivery and streamlined supply chains will likely drive growth.
• The integration of AI and machine learning into wholesale processes can enhance decision-making and operational efficiency.

2. Marketplace Model

This model connects multiple buyers and sellers on a digital platform, allowing businesses to list products and facilitate transactions.

Key Statistics:

• The B2B e-commerce marketplace is expected to reach $3.6 trillion by 2024, with a projected CAGR of 14%.
  
• Online marketplaces have grown significantly, with approximately 60% of B2B transactions occurring through such platforms.

Future Growth Potential:

• The marketplace model is poised for growth due to the increasing trend of businesses preferring to buy online.
• Enhanced user experiences, diverse product offerings, and efficient logistics will drive adoption
• The development of mobile commerce and omnichannel strategies will further facilitate marketplace growth.

3. Subscription Model

Customers pay a recurring fee to access products or services, providing companies with predictable revenue.

Key Statistics:

• The subscription e-commerce market was valued at around $15 billion in 2020 and is projected to grow to $478 billion by 2025, with a CAGR of 72%.
  
• Over 70% of businesses that adopt a subscription model report improved customer retention.

Future Growth Potential:

• This model appeals to businesses looking for stability and consistent revenue streams.
• Increased reliance on software and cloud services will likely drive growth in subscription-based offerings.
• The ability to provide personalized and tiered subscription levels can enhance customer satisfaction and loyalty.

4. Freemium Model

Basic services are offered for free, while advanced features require payment.

Key Statistics:

• A significant portion of B2B SaaS companies (approximately 60-70%) use the freemium model, with conversion rates varying from 2% to 10%.
• Companies using the freemium model can see a 300% increase in user base within the first year.

Future Growth Potential:

• The freemium model is expected to grow as businesses focus on user acquisition.
• Companies are increasingly investing in marketing strategies to convert free users to paying customers.
  
• Leveraging data analytics to improve conversion rates can enhance profitability.

5. Direct Sales Model

Companies sell products or services directly to other businesses, often employing dedicated sales teams.

Key Statistics:

• Direct sales in the B2B sector are projected to account for over 60% of total B2B sales by 2025.
  
• Companies that implement direct sales strategies often achieve up to 30% higher customer satisfaction.

Future Growth Potential:

• The direct sales model is expected to grow as businesses focus on personalized service and customer relationship management.
• Advancements in technology, such as CRM systems, will support this growth.
  
• The rise of remote work is increasing opportunities for virtual sales engagements.

6. Value-Added Reseller (VAR) Model

Resellers enhance existing products with additional features or services before selling them to businesses.

Key Statistics:

• The global VAR market is anticipated to reach $4.9 trillion by 2025, driven by the demand for integrated solutions.
• VARs can achieve profit margins of 20-30% on value-added services.

Future Growth Potential:

• As businesses seek tailored solutions, VARs are well-positioned for growth by providing customization and support services, especially in the technology sectors.
• Increased collaboration with technology providers can enhance service offerings.

7. Manufacturing Model

Manufacturers sell their goods directly to other businesses or wholesalers, often customizing products to meet specific client needs.

Key Statistics:

• The B2B manufacturing market is expected to reach $13 trillion by 2025, with growth driven by advancements in manufacturing technology.
• Manufacturers using digital channels report an average of 15% increase in sales.

Future Growth Potential:

• As automation and digitalization continue to advance, manufacturers will likely leverage B2B e-commerce to enhance efficiency and reach new markets.
  
• The integration of IoT technologies can lead to improved product tracking and supply chain management.

8. Dropshipping Model

Businesses sell products without holding inventory, transferring orders directly to suppliers for fulfillment.

Key Statistics:

• The dropshipping market is projected to reach $557.9 billion by 2025, with a CAGR of 28.8% .
• Approximately 23% of e-commerce sales in 2021 came from dropshipping businesses.

Future Growth Potential:

• This model is gaining popularity due to lower financial risks and the flexibility it offers.
• The rise of e-commerce will continue to fuel growth as more businesses adopt dropshipping strategies.
• Innovations in supply chain technology can streamline operations and enhance customer experience.

What Are All 4 Important Things Need To Create Online B2B Marketplace Website?

There are a couple of things that are needed to create B2B marketplace online business. Here are the foremost vital elements you would like to keep in mind.

1. Your Niche

Your B2B marketplace business needs a distinct segment. Why? Because that’s the only way your marketplace platform can stand out.

Think about it: If you’re trying to seek the audience’s attention with a general eCommerce B2B marketplace. What would be the outcome? It probably won’t get much attention. Why because there are well-known marketplaces like Alibaba out there that work similarly. Those are marketplaces people address for their more general needs.

But if your marketplace features a niche product of yours, then surely your marketplace will hit the online market soon because of the “go-to” source for that niche. For instance, you would possibly be the marketplace for businesses that require seeking out quality jewelry or a marketplace for the most straightforward business travel services.

To figure out your niche, check out the industry you would like to work in. What’s already out there? How are you able to offer a far better marketplace? Does one offer better quality or make B2B transactions more convenient or cheaper? 

2. Product/Market Fit

Any business, including yours, will work only if there’s a product/market fit. 

What does this mean? Simple: There must be a market that’s hungry for your B2B platform. 

Usually, you’ll get to iterate to seek out that fit. You recognize people want your platform once they start signing up and paying for it. On the other hand, if they don’t see the worth of your platform, you would like to tweak it to seek out a far better product/market fit.

3. Business Model

Your next step is to work out what business model you would like to use. After all, your business model is one of the foremost essential elements of your business.

With the proper business model, you’ll scale and build a profitable business. With the incorrect model, you’ll be stuck in growing a company that’s doomed from the beginning.

The best way to price your business? It’s probably a commission model, where you get a slice of each transaction that’s made on your platform.

Alternatively, if you’ve got fewer but bigger transactions, you would consider pricing per every lead you help your users get.

4. Users

Finally, believe who your users are. Are they small businesses? Mid-sized businesses or enterprise businesses? Or are you offering services to different types of companies?

Be clear on that first:

• What motivates your users to use your platform is that an enterprise business has different needs and budgets than a little, one-man business.
• How to attract them to your platform – You would possibly be ready to get smaller businesses by advertising on social media. Bigger companies have bigger competition, so they usually require more in-person marketing efforts.
• What price index your marketplace should have – After all, it’d be easier to draw in smaller businesses to your platform. But they won’t be ready to spend like enterprise businesses.

How To Build A B2B Marketplace Platform?

Set the record straight and we will talk about reality here. It all starts with “I don’t know where to start”. This is the level of awareness that is going to be discussed in this blog. We are not going into the standard hierarchical steps that include technical jargon but I will break it down in simple terms for you! You don’t need to have prior knowledge or refer to other blogs to get started. 

Just take an overview of the subheadings and you will sail with me!

1. Start With Thinking

The idea of wanting to start a B2B ecommerce platform started with just a thought that originated from yourself. Likewise, the type, size, and nature of the business, type of product or service, target audience, location, and other related market segmentation criteria need to be determined. Yes of course you need to do market research to zero in on these but deciding on these factors without doing any groundwork will help you focus and narrow your approach. It acts as an outline. 

2. Do Your Research

The aforementioned point would have left you with a couple of questions, now to answer those you can start your own analysis by checking out credible sources that give real-world insights from which the potentiality associated with the industry can be determined and hence in each of the market segmentation elements. Final decisions must be based on these from credible sources.

Some of the credible resourceful links are mentioned below:

• Forrester Research:

It gives insights on market trends and forecasts, customer experience insights, competitive analysis, industry-specific insights, and others.

• McKinsey & Company:

It emphasizes the strategic implications of B2B eCommerce, including digital transformation and organizational change, often addressing long-term strategies. 

• eMarketer:

It primarily focuses on ecommerce, digital marketing, and media. It provides statistics in the form of infographics of the latest trends that are timely. 

• Statista:

It covers a wide array of industrial information, including e-commerce, that aggregates data from various sources, focusing on providing numerical data.

Doing this not only answers your questions like a one-time event but actually affirms your decision to enter into this industry by allowing you to see the future scope this industry has in terms of growth, providing enough validation for you to move forward. 

3. Draft A Customer Journey Map

Now that we are settled with the initial ideation, now is the time to get into the action of materializing the idea. You would think it would be to approach a software builder but before that, there is an imperative step that needs to be fulfilled. The preparation of a customer journey map, which clearly outlines the experience your customer would have from the very first touchpoint to the last, imagining your B2B ecommerce platform is live. 

Out of all the types, a service blueprint would be the most suitable due to the following reasons:

• Complex Operations:  

Since B2B transactions involve complexity with various stakeholders, approvals, and custom requirements, this type of map assists in visualizing the entire process. It enables the identification of potential bottlenecks, and improvements can be made accordingly.

• Multiple Touchpoints:

This blueprint maps out the various touch points which include the various departments and personnel within a company. This facilitates a consistent and seamless experience across the entire organization by displaying a wider view that helps make decisions with a comprehensive understanding.

• Internal Processes:

It highlights the processes, allowing areas that need improvement and those that cause issues from initial contact to order fulfillment to be addressed proactively, enhancing overall efficiency as a result.

4. Website Development

There are various traditional and modern approaches to the design language architecture and the functionality of the software platform. Based on need the approaches must be determined. 

The following traditional approaches are currently being deployed in the B2B ecommerce landscape till date: 

• Layered (N-Tier) Architecture 
• Client-Server Architecture
• Service-Oriented Architecture (SOA) 
• Three-Tier Architecture 
• Object-Oriented Architecture

Some of the modern approaches wireless used currently are:

• Headless Architecture
• Microservices
• Composable Commerce
• API-First
• Cloud-Native
• Event-Driven Architecture

How modern approaches have an edge over traditional approaches:

• Customer Expectations:

Modern customers expect modern solutions in terms of agility and flexibility in every touchpoint they come across in their shopping experience, to suffice that, adopting a modern approach would be ideal to deliver a consistent and adaptable experience.

• Scalability Requirements: 

All modern approaches are built on flexibility to integrate, upscale, and downscale as and when required, this becomes a primary concern as the market demands are always fluctuating and the need for an agile and responsive system becomes a necessity.

• Integration Abilities:

Modern approaches are well-versed in their ability to integrate into legacy systems and third-party services. Practically speaking, utilizing an ecosystem of technological products is over the cloud. So this approach enables extensibility to your newly procured B2B ecommerce software. 

• Decoupled Architecture:

This approach helps in allowing flexibility in customization and scalability by enabling components to interact freely and upgrade services independently, without touching the rest of the components within the system, thus promoting holistic change management that happens with no barriers for each service to operate constantly. Webnexs offers an API-driven headless ecommerce solution, which is a solution that facilitates faster time to market and future-proofs your website.

5. Sourcing Vendors

Nothing like the right source that comes from networking, additionally there are dozens of sources to pick the right vendors. Let me break it into real practical steps, theory is not going to help you now!

• Online Marketplaces: ThomasNet
• B2B Directories: Kompass and Maker’s Row
• Industry Associations: The American Apparel & Footwear Association (AAFA) and The National Association of Wholesaler-Distributors (NAWD)
• Wholesale and Distribution Networks: Doba and Wholesale Central
• Online communities: LinkedIn, Facebook Groups and Reddit
• Others: SourcingBox and TradeGecko

These are some easy steps for sourcing in the initial phases. Once you start growing, vendors will begin making unsolicited requests to sell on your platform.

6. Tracking KPIs and Monitoring Metrics

Are you thinking that both are the same? Okay, the misconception still exists. They are not the same. Both measure performance, but KPIs are strategic tools derived from business goals to assess long-term performance, while metrics are operational tools that measure performance over a short period.

KPIs (Key Performance Indicators):

• Gross Merchandise Value (GMV): It measures the value of sales of all the merchandise sold.
• Average Order Value (AOV): It indicates the average amount spent per order by a buyer.
• Conversion Rate: It measures the percentage of visitors who make a purchase compared to the total number of visitors to the website. 
• Customer Lifetime Value (CLV): It is an estimate of the total revenue that could be generated from a single buyer throughout their predicted time of business with the seller.
• Customer Acquisition Cost (CAC): It indicates the cost of acquiring a new buyer.
• Churn Rate: It measures the percentage of buyers who stop their purchase from the seller.
• Order Fulfillment Rate: It indicates the percentage of orders shipped on time and in full.
• Net Promoter Score (NPS):  It indicates customer satisfaction and loyalty.

Metrics:

• Traffic Sources: It displays website traffic by source (organic, paid, referral, etc.)
• Bounce Rate: It measures the percentage of visitors who leave after viewing only one page.
• Return Rate: It indicates the percentage of products returned by customers.
• Sales Growth Rate: It measures the percentage increase in sales over a specific period.
• Inventory Turnover Ratio: It indicates the rate at which inventory is sold and replenished.
• Email Open and Click-Through Rates: It measure the engagement with email marketing campaigns.
• Profit Margin: It represents the percentage of revenue that exceeds the costs of goods sold.

7. Reflect The Changes Needed

From the insights that you have gathered from the KPIs and metrics, it’s now time to make modifications to the areas needed to ensure you are improving to build a robot platform that facilitates operations for the vendors as well as the buyers.

How To Find The Proper Online B2B Marketplace Software?

Once you’ve got your B2B marketplace platform fundamentals, it’s time to create b2b marketplace.

The easiest way? You’ll develop your platform from scratch. However, the fastest and most cost-effective way is to use B2B marketplace software.

These are SaaS tools with drag-and-drop features that you can use to line up your online B2B platform each day. If you would like more advanced features, you’ll usually customize your platform.

Your B2B marketplace builder must include the subsequent.

1. The Features

These should include a minimum of essential items like listings, user profiles, payment methods, and how users can speak with one another.

2. Security

Anything will start with trust and security factors. They are essential for a marketplace business, so your B2B marketplace software must have proper security measures. For instance, it must offer secure transactions and communication methods.

3. Customizability

If you want to be treated better than your peers, you must offer something unique in customizing your platform. 

At Webnexs, we provide a B2B marketplace builder. Our interface is straightforward to use, but you get access to tons of powerful features.

How To Grow Your B2B With Marketplace Builder?

Once you’ve created your B2B marketplace, it’s time to grow and scale it.

When you first start growing your B2B marketplace, you should first specialize in getting users organically. It is often especially the case if you’re working with more prominent companies. 

In the beginning, you’ll get to overcome the classic “chicken or egg” problem. What does this mean? A marketplace needs both sellers and buyers, but it’s not always clear which user group you ought to prioritize. 

A good approach is first to get a variety of sellers to your marketplace. They need an incentive to hitch, and once you show that your marketplace has something to supply, you’ll grow it with buyers.

To get your first users (both sellers and buyers), you could possibly try:

• Tapping into your network.
• Cold emailing and cold calling.
• Attending the conferences, sector events, and any trade show of your niche
• Partnering with companies that aren’t direct competitors.

But what does one do once you’ve got a variety of sellers and buyers on your B2B eCommerce platform? You can start scaling it.

Now, you employ more scalable marketing methods to draw in users. You continue that specialize in the strategies you’ve used previously to draw in users, but now, you begin adding strategies that attract even more people to your site. 

These include strategies like:

• Search engine optimization – Get your users to seek out your marketplace on search engines. 
• Content marketing – Together with your blog content, you build an audience of loyal fans who see your brand as the leading expert in your niche.
• Guest posting – Guest posting helps you grow your audience base and build more self-brand awareness by getting your company featured in publications.
• Social media marketing – Counting on the companies you target, social media marketing could be how for you to draw in new users. You’ll use platforms like LinkedIn and Facebook to urge users to your marketplace.

Want To Start Out Building Your Online B2B Marketplace Today?

There you’ve got it. Now you recognize the way to create a B2B marketplace platform. It comes right down to finding the proper niche, market fit, business model, and user base.

Once you’ve got your basics nailed down, it’s time to start out building your B2B marketplace. For that, you would like the proper marketplace software.

At Webnexs, we provide different options, depending on your marketplace needs.

You’ll use our drag-and-drop tool to make your marketplace platform or customize it.

So, by the way, your B2B online marketplace platform will have all the powerful features to need to grow fast as much as you can.

Want to undertake Webnexs for free B2B marketplace consultation? Click here!

Frequently Asked Questions (FAQs)