B2B e-commerce is booming – and one of the biggest game-changers? B2B marketplaces.
Whether you're looking to tap into fresh markets or simplify how you do business, online B2B marketplaces could open the door to exciting new opportunities. These platforms bring businesses together in one dynamic digital space, making it easier than ever to streamline procurement and reach more customers.
But are they the right move for your e-commerce strategy? In this guide, we’ll break down the benefits, challenges, and key considerations – plus highlight some of the best online B2B marketplaces to explore.
In 2024, the global B2B e-commerce market was valued at a staggering US$30.42 trillion. But that’s just the beginning – by 2029, it’s on track to more than double, soaring to US$66.89 trillion.1
What are B2B online marketplaces?
Beyond your own e-commerce website, there’s another powerful digital sales channel to consider: the online B2B marketplace. These platforms connect businesses in one central hub, making it easy for them to discover, connect, and transact – often at scale.
Vendors can range from wholesalers and manufacturers to suppliers and brands, offering everything from raw materials to finished products to parts and services. Think: sourcing industrial machinery, raw textiles for your fashion line, or a new software solution – all from one place. That’s the power of a B2B wholesale platform.
B2B marketplaces generally fall into two categories – vertical and horizontal:
- Vertical: These marketplaces specialize in a specific product or industry. For example, a B2B wholesale marketplace might focus solely on connecting food manufacturers with restaurant suppliers.
- Horizontal: These marketplaces offer a more comprehensive range of products and services across various industries. Think Amazon Business – you’ll find everything from office supplies to industrial machinery at these global B2B marketplaces.
In short, these marketplaces offer you a powerful platform to expand your reach, streamline procurement processes, and tap into new markets.
How do B2B and B2C marketplaces differ?
While B2C platforms tend to see smaller and simpler transactions, those on B2B marketplaces are typically more large-scale and complex. Let’s explore their key differences.
Are B2B marketplaces the right sales channel for your business?
While adding online B2B marketplaces to your sales strategy can unlock significant advantages, weighing the pros and cons to determine if they’re the best fit for your specific business needs and goals is crucial.
Advantages of B2B marketplaces
Unlock new markets and customers
For suppliers, B2B marketplaces open access to a vast network of potential buyers. SMEs with limited marketing budgets can access a wider customer base and potentially enjoy increased bulk sales. Meanwhile, customers benefit from the convenience of not having to manage many suppliers when they buy through a wholesale marketplace.
Streamline sales and procurement processes
With automated order processing, integrated payment gateways, and efficient logistics solutions, sellers can save time and resources through more efficient sales and order fulfilment processes. For buyers, B2B digital marketplaces simplify the sourcing process and reduce administrative burdens as they can find everything they need on one central platform.
Gain valuable insights
Many B2B digital marketplaces offer valuable data and analytics to help sellers understand market trends, competitor activity, and customer behavior. These insights can inform sales and marketing strategies, optimize product offerings, and improve overall business performance.
Disadvantages of B2B marketplaces
Higher stakes
B2B transactions tend to involve higher average order values, meaning a single bad transaction can reflect poorly on the supplier. B2B businesses looking to integrate marketplaces into their e-commerce strategy will need to weigh up the benefits and risks involved. In some cases, investing the time and money into an owned e-commerce website may be more worthwhile
Fees and commissions
Most B2B wholesale platforms charge fees or commissions on transactions, which can impact profit margins. To help offset these costs, some platforms may offer tiered pricing structures or volume discounts. It's essential to evaluate the fee structures and costs as these factors should inform your pricing strategies and overall business plans.
Limited customer relationships
Building direct relationships and fostering customer loyalty can be more challenging when transactions are mediated through a third-party platform. To mitigate this, sellers might still need to communicate personally with buyers through traditional means, such as phone calls.
Top 10 global B2B marketplaces
What sellers should look for in a B2B marketplace
For SMEs, the right B2B marketplace should help grow bulk sales and expand your network – without draining your time or budget. Look for platforms that simplify catalog updates, offer direct access to buyers, and automate lead generation so you can focus on scaling, not chasing orders.
- Start with a payment model you can afford: A B2B marketplace offering a low-cost baseline can help to offset your costs. Here are some payment models you can consider:
- Commission-based models charge a percentage in commission on every order you receive.
- Subscription-based models charge a membership fee that might encompass services like account management, advertising, and logistics support.
- Listing fee-based models charge an extra fee for each product you list, making them more suitable for people using the marketplace as a secondary income source.
- Find an intuitive interface: Choose a marketplace with an intuitive interface that makes everyday tasks – like listing products, managing orders, or tracking performance – quick and easy.
- Check for a range of seller features: Product management, Customer Relationship Marketing (CRM) software, shipping tools and various payment options help to keep you in control of your business and transactions.
Selling direct on B2B marketplaces
B2B marketplaces won't be the right fit for every business, and that's where investment in your own e-commerce website can help. If you consider that two-thirds of B2B buyers prefer to carry out all supplier transactions online5, it's a smart move to have a digital sales avenue.
Ideally, you should be able to leverage marketplaces while still being able to sell directly to customers. For that, you’ll have to understand consumer trends before optimizing your sales channels accordingly.
Succeed with B2B marketplaces today
From identifying new customer expectations to implementing features to enhance e-commerce growth, DHL’s exclusive Ultimate B2B E-commerce Guide can help you to navigate the B2B digital revolution. Whether you already have an e-commerce website that needs an upgrade or you're starting from scratch, download this helpful guide to make the most of new sales opportunities today.
Beyond finding the right online sales channels, having an experienced international logistics partner, such as DHL Express, is also instrumental for business success. From providing logistics advice to helping you with shipping internationally, DHL Express ensures a seamless order fulfilment and delivery experience for you.
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