Startups of B2B marketplaces in the USA, like Faire and Mirakl, have become the limelight of gossip in 2020. Overnight, these startups have transformed into consequential platforms by incoming billions of dollars. These B2B eCommerce industries have a complete package of commerce infrastructure, payment systems, and supply-chain solutions. But this B2B eCommerce is outsized only in one sector, i.e., Marketplaces.
B2B startups consist of better infrastructure, payments, and security. So, they are hugely in demand regarding the business of buyers and sellers. Even the pandemic situation going on now also ignited the popularity of them. Reports say that before the pandemic, B2B companies were expected to produce $3.6 trillion in sales by 2024. Payments research firm iBe TSD estimated that they could generate $680 billion in 2018.
The B2B marketplaces are already ahead of B2C marketplaces with respect to growth. And when the COVID stops hit, many companies began to open their online stores. Digital Commerce 360 conducted a survey of business buyers. The main surveyor said, “20% of purchasing managers spend more on marketplaces, and 22% spend significantly more during the pandemic.” Many B2B entrepreneurs gained a lot due to the pandemic.
But B2B marketplaces cannot be fixed to simple transaction platforms. But the businesses which will make a permanent transference to online purchasing are yet to convince that. The businesses which are innovating now to introduce adjacent services will become billion-dollar companies in a few years. A venture capital investor in B2B eCommerce companies said, “I’m carefully watching the industry and have seen several future-thinking business models emerge for B2B marketplaces.”
The prevailing revenue model of the B2C marketplace, Gross Merchandise Value (GMV), takes the rate or percentage of each transaction. But it does not affect well in the B2B industry. Well, in the meantime, B2B startups are producing new and creative ways to monetize their networks. They also assured that their approach would be confined to the world of B2B eCommerce.