According to a research study conducted by Astute Analytica, the Global B2B E-Commerce Market is estimated to bank a CAGR of 14.1% during the forecast period 2021-2027.
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B2B E-Commerce short for business-to-business electronic commerce; refers transactions between businesses via online channels. A B2B transaction involve manufacturers, wholesalers, or retailers but it does not involve transactions to consumers. Business-to-business transactions are the most common with manufacturers. For example, Apple has contractual business agreements with companies like Intel and Panasonic for B2B relation.
Transactions carried out through e-commerce platforms achieve more efficiency at lower prices and provide reliable applications. Due to Covid-19 restrictions, E-commerce rapidly became the preferred mode for retail businesses. With business shifting to online platform, the unprecedented growth in the B2B e-commerce industry is expected to last till the year 2023.
WHAT EFFECTS THE MARKET?
- DRIVERS:
- The B2B e-commerce market is highly fragmented and both small and medium-sized companies and large companies have moved their businesses online.
- The emergence of web applications that effectively connect B2B marketers has enhanced the popularity of online marketplace for B2B players. Constant technological advancements and enhanced integration have boosted the performance of platforms. For instance, Microsoft Edge Canary receives daily updates for better personalized experience.
- B2B sellers are keenly focusing on offering personalized services, tailored specifically to the needs of individuals. E-Commerce channels have helped them to drive the revenue growth five times higher than during normal periods, which in turn adds more profits to the overall B2B industry.
- RESTRAINTS:
- COVID-19 is changing the way B2B buyers and sellers interact. At the beginning of the pandemic, rules and regulations restricted business movements and resulting in severe impact to the global B2B industry.
- Border restrictions have resulted in temporary suspension of movement of people and transport. Transportation disruptions have caused serious disruptions to the actual flow of goods and the mobility of products, affecting the entire supply chain, leading to operational stoppages, lost sales, delayed deliveries, and loss of reputation.
- Global prices of raw materials and intermediate supplies have risen due to the suspension of production activities and transportation disruptions. The increase in freight costs has had a significant impact on the supply chain.
- Political stability is important to the business environment because it affects investor and consumer confidence. Therefore, political instability has an impact on global online sales and corporate investment, consumption, and economic growth.
- OPPORTUNITIES:
- The B2B technology buying cycle is undergoing significant change due to rapid increase in the technological advancements.
- Hence, businesses are required to quickly master new technologies, new methods, new solutions, etc. to engage actively in competition. Artificial Intelligence and Virtual Reality is currently creating a mid-level impact but for in a long-term, it will become a major factor impacting the B2B e commerce market to great extent.
- The present condition caters majority of market driven demand is from online buyers and sellers. This opportunity will continue to widen due to various benefits offered by online business against the traditional offline ones with decreasing willingness of online platforms to return to the retail traditional B2B face-to-face shopping experience.
- TRENDS:
- Adoption and ease of new payment modes is attracting new buyers and due to increased transactions will in turn create high growth impact on B2B business profits. Recently, Westpac Fiji and Fiji SME Business Owners Network signed an agreement that will help small enterprises to make easier online transactions at their platform.
- The demand for fast B2B order deliveries is increasing rapidly. Businesses demand to receive fast shipping that is offered by B2C merchants.
- B2B merchants can fulfil the process by using order management software. B2B can also rely on third-party performance to drive things forward. Third-party delivery usually uses software like ShipStation or ShipBob to manage delivery.
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KEY PROVIDERS AND RECENT DEVELOPMENTS
With the emergence of e-commerce platforms, the market providers are rapidly witnessing a positive growth in terms of market share.
The market share of top five players is estimated to be 58.8%. Some of the key companies present in B2B e-commerce industry are Alibaba, Amazon, eBay Inc., Flipkart, e-worldtrade, Global Source, IndiaMart, Thomasnet, etc.
Some of the key recent developments in the Global B2B E-Commerce Market are:
- In 2022, Alibaba plans to expand their cloud business internationally by inaugurating new data centers across different countries in Asia. South Korea and Thailand are at the top of this list.
- In Sept 2021, Google launched new updates to improvise its product search pages and provide better consumer experience. Some of these updates include more prominently appearing product images.
- In Sept 2021, Grofers Co-founder launched a new E-commerce platform called Warpli to actively compete with market giants like Amazon and Flipkart.
MARKET SEGMENTATION OVERVIEW
In the research report published by Astute Analytica, the Global B2B E-Commerce Market is segmented on the basis of Type, Payment Mode, Enterprise Size and Region. The global marketplace is estimated to record a revenue of US$ 7,528.9 Billion in the year 2020.
Across all segments and sub-segments, Mobile Wallet Apps is forecasted to record the highest CAGR in the period of 2021-2027. This is because it allows to process one-time payments on your own, without having to rely on third parties. Thus, providing ease of transactions.
In the region segment, Asia Pacific B2B e-commerce is evaluated to record a CAGR of 15.6% during the forecast period. The regional B2B e-commerce industry boom was aided by an increase in the number of B2B sellers.
Segment Overview of the Global B2B e-commerce Market
By Type
- Cleaning supplies
- Hospitality Products
- Industrial & MRO
- IT Products
- Office supplies
- Pantry Products
- Others
By Payment Mode
- Credit card
- Net banking
- Mobile wallet apps
- Others
By Enterprise Size
- Small & Medium Enterprises
- Large Enterprises
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- The UK
- Germany
- France
- Italy
- Spain
- Russia
- Poland
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- Australia & New Zealand
- ASEAN
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- UAE
- Saudi Arabia
- South Africa
- Rest of MEA
- South America
- Argentina
- Brazil
- Rest of South America
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