If you are in the business of B2B, I have probably lost you.
Good. Because this isn’t an article about your business model.
But stay with me for a minute, because there is something that’s impacting all businesses, no matter how big or small, that has marketers everywhere looking at their commerce strategy to understand how it factors into the overall go-to-market plan. And if you want to connect with today’s consumer on their terms and devices, whether they are making buying decisions on behalf of themselves or others in their company, then you need to read this right now. This is about understanding the modern marketplace, which includes marketplaces built by technology companies like Amazon and Apple as well as platforms that are owned by companies whose core competency is not ecommerce but, rather, their own category.
So what exactly is a marketplace?
Put simply, it’s an online channel where people can buy or sell goods and services products or labor. Platforms like Airbnb, Etsy, Fiverr and Uber all fit this definition while also representing very different business models. If you think about these marketplaces in terms of B2C vs. B2B commerce strategies, there are some key differences to consider when evaluating which ones will have the most impact based on your needs:
B2C marketplaces are transactional
While B2B marketplaces are relational . A consumer buying shampoo through Amazon knows she’s just one click away from buying running shoes. And brands are trying to break through that clutter to buy media in order to drive transactions, but there’s no ongoing relationship between consumer and brand in the same way you might have if you sell your products on Amazon or eBay. B2B marketplaces are about creating relationships with customers who come back over time because they see value in continuing the ongoing dialogue.
Consumer Buying Thinking
A consumer buying shampoo through Amazon knows she’s just one click away from buying running shoes. And brands are trying to break through that clutter to buy media in order to drive transactions, but there’s no ongoing relationship between consumer and brand in the same way you might have if you sell your products on Amazon or eBay. B2B marketplaces are about creating relationships with customers who come back over time because they see value in continuing the ongoing dialogue. B2B marketplaces are not just about transactions . These platforms are often product agnostic, meaning they can be used to buy or sell anything (think Google and Apple). While consumers might go on Etsy to find one-of-a-kind gifts, businesses are using it to buy mass quantities of furniture for their offices. It’s also common practice for B2B companies to use marketplaces like Amazon, eBay or Alibaba to reorder supplies without having to establish a relationship directly with that supplier.
B2C marketplaces are about one-to-one transactions
Consider the buyers directory like eWorldTrade, which is an ecommerce site that allows businesses to order anything from TVs and smartphones to fashion, appliances or beauty products. With this in mind, what types of brands might benefit the most from selling their goods on a marketplace vs. their own commerce site?
Every company fits somewhere in this spectrum based on its focus and business model—but there are many who are looking for more control over the customer experience when it comes to how they want to interact with their customers. Companies like American Express have recognized this shift away from transactional models by starting up Shop Small , where consumers can local deals for small businesses.
Consumer Behaviour
These platforms are often product agnostic, meaning they can be used to buy or sell anything (think Google and Apple). While consumers might go on Etsy to find one-of-a-kind gifts, businesses are using it to buy mass quantities of furniture for their offices. It’s also common practice for B2B companies to use marketplaces like Amazon, eBay or Alibaba to reorder supplies without having to establish a relationship directly with that supplier. B2C and B2B marketplaces have different business models . Consumer marketplaces generally make money through advertising and transaction fees (for example, when you see an ad on Google or click on a “Buy” button). This is not the case with most B2B marketplace revenue models as they tend to be transactional with commission fees as well as subscription and usage models.
What does this for your ecommerce strategy?
Think about how you can use marketplaces to address customer needs that go beyond direct transactions and touch on building new and strengthening existing relationships with customers. For example:
First, not all of your customers may shop on B2C marketplaces so it’s important to figure out where they already spend time online. Then you need to identify business pain points or opportunities where a B2B marketplace might be able to increase efficiency, lower costs or even generate revenue. Think about the types of products/services that are currently being bought and sold through marketplaces as this will help determine if there is a fit with your own business model for those categories. Are there purchases from suppliers who aren’t now acting as a channel?
Do they want a better way to manage volume purchases?
Look to your social media profiles for signals about what customers are interested in buying. If you sell food, they may be looking for recipes on Pinterest and Instagram. If you’re a clothing company, they may be more likely to visit brands on Discovered and Polyvore. And pay attention to the “About” pages of direct competitors as those businesses often identify common B2C marketplaces that their core customer groups like to shop. It’s also good practice to use information from your current suppliers as feedback here can provide valuable insights into opportunities not only with those specific suppliers but also industry-wide.
Knowing where your target customers already spend time online will help you determine if there is a fit between what they’re looking for and what you sell.
Marketplaces are a powerful tool in any ecommerce strategy but don’t forget that there is more to building relationships with customers than transactions alone! Also, to build your dream ecommerce site hire some WooCommerce developers which are the best and recommended ecommerce developers nowadays.
Also Read about amazon erc.
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