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During the COVID-19 pandemic, the e-commerce-based business has prompted benefits with more interest in online orders. In the year 2018, in the United States, e-commerce businesses represented 9.9% of absolute retail deals. In 2017, the e-commerce-based business made up around 0.76% of India's GDP. The Global B2B E-Commerce market is expected to develop to US$ 18,771.4 Billion by 2027, with an estimated yearly development pace of 14.1%. The market for B2B E-Commerce was esteemed at US$ 8,523.3 Billion in 2021.
China's internet-based portion of retail deals rose from 19.4% to 24.6% between August 2019 and August 2020. In Kazakhstan, the web-based portion of retail deals extended from 5% in 2019 to 9.4% in 2020. B2B e-commerce-based business, or business-to-business electronic trade, is the offer of products and services through internet-based exchanges between organizations. Since orders are handled carefully, purchasing productivity and adequacy are improved for wholesalers, manufacturers, merchants, and different sorts of B2B dealers. In the global B2B e-commerce value chain, value is created through connections between members, material suppliers, operators, and users. Users are the participating entities that are transferred from B2B physical value chain to the e-commerce value chain.
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Prominent factors affecting the global business sector development during the forecast period incorporate:
Increased focus on digital experiences
Today B2B purchasers add on a critical commitment to the general shopping experience. The simplicity of quick and reliable payment options helps in expanding advanced exchanges on the web and the rise in B2B benefits at a much quicker pace. B2B dealers are mainly focusing on offering customized administrations and custom-made explicitly to the necessities of individual buyers. In 2020, B2B merchants will see a huge expansion in B2B purchasers' interest in digital business sales channels. Increasing emphasis on digital sales channels is the key trend that supports the B2B industry to provide customer satisfaction and increase work efficiency at every level. Moreover, with the continuous development of online technology solutions, the rise of network applications is also becoming a general trend in the market.
Attractiveness of specialized B2B online marketplace
Globally, the B2B e-commerce market is fragmented in nature, and both small and medium-sized businesses (SMBs) and large-scale businesses have moved their businesses to the internet. In the long-term, the COVID-19 pandemic may continue to affect the way organizations conduct business, and online commerce will become the strategy of choice for most B2B providers. These factors are creating good space for a specialized B2B marketplace making it a favorable ground for developing opportunities in the B2B industry. With technological advancement, the specialized B2B marketplace is growing rapidly. As a result, it is moving towards creating a high-level impact by migrating its business to online operations.
Retail businesses are migrating to online operations
In the year 2020, amidst the global crisis, e-commerce rapidly became the preferred mode for the survival of retail businesses. Due to the long closure of retail businesses, many SMBs upgraded to online operations from traditional methods to stay in business. Since the expectations of B2B buyers are significantly affected by the B2C experience, it is important for B2B companies to make this change in order to remain competitive. With the continued advancement of technology and the growing popularity of online sales by retail organizations, B2B companies are also taking up these significant growth opportunities. Furthermore, disruptions in supply chains and political instability affect business trade to some extent, therefore inhibiting market growth.
Direct Impact of Supply Chain Disruptions on B2B Sales
Border restrictions resulted in the temporary delay of the goods at the regional level, which has severely hampered international trade. Therefore, transportation is considered a vital logistics engine, affecting the responsiveness, efficiency, and performance of the supply chain. Transportation interruptions have made serious disturbances in the actual progression of merchandise and mobility of products, influencing the whole production network, thus resulting in functional stoppages, lost deals, and delays in deliveries.
Political Instability Impacting B2B Trade
Political instability increases transaction costs between exporters and importers, thus reducing the incentive to establish and maintain business relationships. Political security is essential to the business environment for business ventures since it influences investors and buyer certainty and subsequently broadly affects the economy. In this way, changes in political security affect worldwide online sales and corporate venture, utilization, and monetary development of the economy. Moreover, the undiscovered chance for B2B in the universe of AR and VR and taking care of new online buyers set out a rewarding opportunity for market development.
Untapped opportunity for B2B in the world of AR & VR
Buyers of B2B businesses have experienced a remarkable speed of technological change, as a result, B2B innovative purchasing cycle is going through some major changes. Consequently, the organizations are expected to rapidly adopt new advances, strategies, arrangements, and so forth. In the year 2019, 53% of B2B masters demonstrated that video is the most valuable type of content, trailed by contextual analyses. Video is likewise the best option for the most usually shared type of content. Up to 80% of B2B buying choices depend on the purchaser's direct and indirect client experience, and just 20% depend on genuine items or cost. Advanced technologies such as AR and VR are impacting the industry at medium intensity but are predicted to be a key factor, in the long run, to redesign B2B e-commerce industry to a greater extent.
Online Buyers – A New Group of Customers
In the United States, which has one of the biggest B2B e-commerce business markets in the world, online deals represent under 20% of the B2B market portion. In any case, this number is continually expanding, and the COVID-19 pandemic has just sped up this pattern. Increasing shareholding of the online pool of customers impacts the market positively.
Among different types of products, the IT products segment dominated the market with about 20% share in the year, 2021. This segment dominance is attributed to the significant impact of the digital economy on the global trajectory coupled with a key focus on the socio-economic well-being of ordinary people. Also, modernizing IT infrastructure supports small businesses to reach a wide customer pool. Additionally, the pantry products segment is supposed to project the most elevated CAGR of 17% over the forecast period. Furthermore, web applications are progressively turning into a need to speed up a business deal for B2B industry.
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Payment Mode Analysis
In terms of payment mode, paper checks are the most regularly utilized B2B payment method. In 2021, 34% of B2B enterprises still utilized paper checks to conduct business. The paper check framework offers various benefits, including easy traceability and improved reliability among others. Utilizing this B2B installment technique might be troublesome in light of the fact that an actual record should be moved face to face or via mail, which will be more time-consuming.
The mobile wallet application is developing at the most noteworthy CAGR of 17.0% as it permits you to handle one-time installments all alone, without hosting to depend on third parties, thus providing secure exchange. For instance: Thailand saw downloads of shopping applications bounce by 60% in only one week during the pandemic.
Enterprise Size Analysis
On the basis of enterprise size, the small & medium enterprise segment hold around 80% share of the market in 2021, with a revenue of US$ 6,789.6 Billion. Adoption of Business-to-Business (B2B) technologies by enterprises is anticipated to improve information quality, improve service, increase process efficiency, and lower costs. Moreover, the growth of the large enterprise segment is 16.6%, and a significant compounded annual growth of the segment is attributed to the business consistency of such large firms which helps them in planning their developments. Likewise, by automating and smoothing out different processes, organizations can reduce expenses.
By region, in 2021, Asia Pacific is the dominating regional market with more than 60% of total B2B sales and is also growing at the highest compound annual growth rate of ~15%. Moreover, several organizations have been constrained to migrate online because of the epidemic, making the potential for B2B web-based businesses to thrive. Moreover, rising internet penetration and smartphone use have driven an expansion in the number of online suppliers and customers across the region. Furthermore, the Japan B2B e-commerce market is estimated to grow at a CAGR of 16.7% over the forecast period.
The combined share of five key players is more than 55%, resulting an oligopoly nature of the market. Some of the major companies operating in the global B2B e-commerce market are Alibaba, eWorldTrade, Amazon, Inc., KOMPASS, ChinaAseanTrade, InterMESH Ltd., DIYTrade, KellySearch, Global Source, eBay Inc, EC21, Flipkart, and IndiaMART among others.
The global B2B e-commerce market is segmented based on type, payment mode, enterprise size, and region. The global B2B e-commerce market is sub-divided into various categories, such as-
By Payment Mode
By Enterprise Size
|Market Size Value in 2021||US$ 8,523.3 Bn|
|Expected Revenue in 2027||US$ 18,771.4 Bn|
|Unit||Value (USD Bn)|
|Segments covered||By Type, By Payment Mode, By Enterprise Size, and Region|
|Regional Scope||North America; Europe; Asia Pacific; Middle East & Africa; South America|
|Key Companies||Alibaba, Amazon, eBay Inc., Flipkart, Eworldtrade, and other prominent players.|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
In the study conducted by Astute Analytica, the market size was US$ 7,528.9 Billion in the year 2020.
B2B E-Commerce short for business-to-business electronic commerce; a commercial transactions between businesses via online channels. In other words, transactions of sale of goods and services between businesses through any of the online sale platforms is called B2B E-Commerce.
In B2B E-Commerce business is selling to other businesses only, but in B2C E-Commerce business is selling to end-users directly. The marketing strategies that pertain in both transactions are completely different.
Alibaba, Amazon, eBay Inc., Flipkart, e-worldtrade, Global Source, IndiaMart, Thomasnet, etc. are some of the key companies that provide B2B E-Commerce services. Top five players in the market hold 58.8% of the total market share while the rest is occupied by local players.
Alibaba holds the highest market share of 30.1% globally. This is closely followed by Amazon and JD.com.
In the year 2020, e-commerce experienced unprecedented growth. The pandemic has hastened digital transitions.
Small & Medium Enterprise segment holds the highest market share of 80% in the year 2020. However, large enterprise is estimated to record highest CAGR in the forecast period 2021-2027 as compared to other enterprise category.
B2B E-Commerce platforms helps business to strengthen their market presence not only locally but also internationally. The B2B ecommerce portals are a way of increasing their customer reach. The transactions carried out through e-commerce platforms achieve more efficiency at lower costs.
According to the report by Astute Analytica, the Global B2B E-Commerce Market is projected to record a revenue of US$ 18,771.4 Bn by 2027.
Demographic influence shaping customer’s need and changing lifestyle during pandemic are some social factors shaping B2B trade preference.
Asia-Pacific B2B e-commerce industry accounted US$ 4,940.7 Bn in the year 2020.
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