A report from Frost and Sullivan finds that B2B e-commerce network will generate 6.7 trillion revenue by 2020. Overall, e-commerce platforms that are supporting business trade will make upto 27% of the $25 trillion market by 2020. This shift towards e-commerce is supported with the advantage of automating the time consuming and costly tasks.
E-commerce businesses have attracted considerable attention, with the IPO of Alibaba raising $21.8 billion. More and more people are getting engaged with e-commerce platforms. The e-commerce business-to-customer market grew by 20% last year and is expected to do much better this year.
With the costly upkeep of the legacy procurement systems, manufacturers and wholesalers are moving large parts of their procurements operations to online e-commerce platforms as these platforms comes with an advantage of automating many of the time consuming and costly tasks.
By 2020, it is expected that 27% of the trade by wholesale and manufacturing business will work through e-commerce platforms. China and US are expected to lead the B2B online market and the latter is anticipated to double its revenue contribution.
The B2B platforms are often being developed to facilitate a wide range of businesses and will adopt the facility of many-to-many businesses rather than one-to-many. These B2B and B2C type open public networks will provide more visibility and storefront capabilities to sellers.
The complexities that wholesale e-commerce platforms deals in B2B sectors are of bigger magnitude than B2C sector.
Businesses tend to buy in bulk and greater variety at variable prices.
The necessity of flexible shipping causes complexity to logistics solutions.
The tax and regulatory concerns are more complex in B2B platforms, thus, large staff is needed to deliver products and services within these restrictions.
The introduction of cloud platforms that offers more scalability , both as an infrastructure service and software is pushing businesses towards online B2B retailing.