Why B-to-B E-Commerce Will Explode in Growth
The transition to e-commerce is the most unique and welcomed change that has ever happened to trade. With it we saw the rise of online marketplaces and direct-to-consumer business models that provided incredible value to customers. However, it’s no secret that business-to-consumer (B-to-C) has been the main focus for entrepreneurship and innovation over the course of the last two decades.
The reality is that business-to-business (B-to-B) e-commerce doesn’t have the same allure as its counterpart. This is because consumers glamorize and publicize products they purchase, whereas businesses focus on the dollars. That’s why B-to-B is so important for the world. With annual global B-to-B spending surpassing $100 trillion, this market was so focused on revenue it fell behind in innovation and stayed offline.
Because B-to-B companies became so archaic, their marketplaces contained cracks in their foundations and they were starting to show once businesses began to see how slow the process was. Now, online payments allow for streamlined solutions and the ability for all B-to-B marketplaces to transition online.
For the points explained above, B-to-B e-commerce will see a natural transition to the modern era. No more paper checks, no more mailed invoices, and no more waiting. There are four ways this transition will happen and B-to-B e-commerce will boom:
- Technology is more advanced and trusted than ever before. We’re living in a society where people trust getting into strangers’ cars or staying in their houses because technology has provided a security net to customers. The same will happen with B-to-B e-commerce. While online scams are still prevalent, payment processing solutions have become so advanced that customers don’t need to worry about losing money.
- Software development is cheaper, faster and better. Twenty years ago, software development was viewed as a talent so complex that only the world’s brightest minds could figure it out. Today, it’s essential that everyone learns that same talent.
- E-commerce provides transparent business models. The rise of online marketplaces allow for customers to share reviews about a business and weed out subpar sellers, compare pricing to ensure they’re getting the best value, engage directly with the seller to receive insight, and track their shipment. These features combine for an all-in-one solution that can be handled from one central location.
- Millennials are becoming the dominant workforce. This generation is known for hating abysmal and clunky offline structures. As a result, they digitize all available structures, including operations, supply chains, work management, and online shopping. In addition to their change, they also understand the landscape of e-commerce from years of experience. We’re seeing a new generation of workforces take the reins of companies, and they're beginning to change infrastructures to make them more user friendly, integrated with newer softwares, and built for better customer experiences.
B-to-B markets tap hundreds, if not thousands, of industries and is a lifeline of the global economy. By evolving its business online, it will create an exploding stream of revenue, growth in competitive businesses, innovative ways to fuel industries, and a new wave of trading. Its future is limitless and exciting.
Rajat Jain is the CEO and founder of The Steel Store, an independent and autonomous marketplace open to and providing significant benefits to producers, distributors, traders and manufacturers in the industrial materials supply chain.
Rajat Jain is the CEO and founder of The Steel Store, an independent and autonomous marketplace open to and providing significant benefits to producers, distributors, traders, and manufacturers in the industrial materials supply chain. He is responsible for developing and initiating strategies for customers on his platform that create win-win deals. Prior to creating The Steel Store, Raj created and led the building of an ERP system for a Steel Distribution company.