There is nothing better in business than a win-win situation. In the case of a B2B marketplace, it is a triple win, since you need to add the owner of the platform to the group. It took a long time for it to finally happen, but almost twenty years down the road, B2B marketplaces are finally finding the wind to push their sails towards the open sea, and everyone involved is happy about it. Here is why.
Why Do Entrepreneurs Choose to Create B2B Marketplaces in the First Place?
Not all people have great ideas for new products to bring to the market. Therefore, they look for new services that they can offer, which is what some have done by creating a B2B Marketplace in a given sector. Often, entrepreneurs who decide to choose that line of work have already been busy in that particular industry for many years. It provides them with an important advantage: knowledge. Not just of the work, but also of the people that make things happen. And so, it is easy for them to find all the products that they need, in order to build platforms that will be helpful for buyers in this industry.
Naturally, the main advantage that B2B marketplace owners benefit from, is the fact that once in place, they start collecting revenues on all transactions taking place. So, although the installation phase can be quite painful in terms of costs, once it opens its virtual doors, it starts making money right away, in an automated fashion.
Why Do Buyers Look for B2B Marketplaces?
It is quite easy to understand why buyers prefer to do their shopping on B2B marketplaces. Just like regular individuals that go on Amazon, in order to find the products that they need, these platforms simplify the work of buyers. The platforms provide buyers with a large variety of choices, in one single place. In addition, they give buyers the opportunities to analyze the various products rapidly, since the description of each is on the site, as well as the price, if acquired. Although the costs may be somewhat a little higher than if buyers negotiated each of them one by one, buyers will also benefit from the fact that these prices will be adapted all the time, automatically, saving them from long negotiation processes.
What Are the Advantages for Sellers?
All people that have worked in sales will tell you that they would rather be able to find their places on platforms and manage the information and the actual sales that take place on them, rather than having to generate new sales, on a daily basis, by themselves. On a B2B marketplace, they can generate sales constantly, simply by being there. The products will need updating in terms of pricing, every once in a while, in order to remain competitive. However, otherwise, the sellers will only have to ship the products acquired on the platform and make sure that they get to their destination safely.
