The Role of B2B Marketplaces in Global Trade
B2B is the abbreviation of Business-to-Business. The term, as it implies, is used for the commerce transaction between two entities/businesses; which can be manufacturers, suppliers, sole traders, wholesalers and/or distributors.
The Term “B2B Marketplace”
The term B2B marketplace is used for an e-commerce website, which simply entertains businesses; in other words, a B2B marketplace is a portal responsible for B2B transactions. From searching for a product, then taking it all the way to closing the deal, everything takes place online without any physical interaction. Hence, B2B marketplaces can plainly be described as portals, which are designed and used for B2B trade.
Effects on Global Trade
These platforms are greatly affecting the global trade, altering the overall sales processes and they are also minimizing the overall budget; thus increasing the revenue of ‘small and medium sized’ businesses. Online trading not only reduces the cost of marketing and sales campaigns, but also reduces labor cost and material resources for the relevant parties. In this way, it greatly reduces the overall costs required to indulge in large-scale global trade.
They also remove geographical barriers so that minimal sized businesses can access new suppliers in a large number of countries. Many marketplaces offer user-friendly catalogues and smooth online-transactions to save the time of their members and reduce risks involved in online-transactions.
Now, it is possible for SMEs to take part in global trade without investing high amounts. Due to the help of these portals, manufacturers and suppliers can promote and sell their products globally without going to each country individually and researching thoroughly for the ‘buyer personas’ in that country. Once a consumer uploads his/her products on the marketplace, his products will be promoted worldwide.
For those who want special attention and more sales, these marketplaces have premium membership packages. Every marketplace has a free membership plan and one or more premium service plans. These premium-plans help the suppliers and manufacturers in trading effectively in international markets through elite-class services.
Despite product and company listings, these portals offer many other tools and features such as discussion forums, B2B chatting software, trade alerts, industry insights, etc.; these tools also help businesses in expanding their reach to wider extents.
Benefits for Manufacturers and Suppliers
When a small-scale manufacturer or local supplier indulges into a business, he/she has a very limited market. These online B2C/B2B stores give him/her the opportunity to explore newer markets and enlarge their company to a global level. Along with reaching fresh markets, these traders can easily find trading collaborates in almost every part of the world establishing additional selling channels. They can communicate directly with the potential customers from all around the world to identify their needs and requirements.
Benefits for Buyers
Last but not the least, these marketplaces also serve as a low-cost buying tool for the buyers who want to get their hands on a product from the international market. With all the products listed within a single platform, buyers can easily find and compare their options for efficient trade.