Digital Commerce 360 just released its 2022 B2B Marketplaces: Growth and Trends report detailing the state of business marketplaces and how they’re shaping the future of business-to-business (B2B) digital commerce.

The biggest takeaway? Despite the longstanding love/hate relationship between B2B e-commerce and marketplaces, B2B marketplace sales are now the fastest-growing digital commerce sales channel. 

Though B2B marketplaces like Amazon Business or Alibaba were once a blip on the B2B e-commerce landscape, digital-first buyers now seek out marketplaces to source and purchase their company goods and services, thanks in part to ongoing supply chain disruption due to COVID-19. 

The report presents several key findings, such as:

• Sales on B2B marketplaces increased 131% to $56.5 billion in 2021, and they’re projected to keep pace toward $130 billion in 2022, making them the fastest-growing e-commerce channel.
• As a result of COVID-19, B2B buyers took to the internet, with 57% buying “somewhat more” or “significantly more” on marketplaces since 2020. As a result, 26% of B2B buyers now say more than half of their buying is done on marketplaces.
• Just three years ago, Digital Commerce 360 was following 75-100 marketplaces. Today, the company holds metrics and analyses for 400 commercial and vertical-specific marketplaces across 18 countries. 
• Amazon Business remains the single most dominant B2B marketplace with a predicted gross volume of $41.5 billion this year.

The report also features insights from key industry experts, including ChannelAdviser’s Product Marketing Manager Bradley Hearn, around the importance of a holistic approach to B2B companies’ marketplace efforts. 

“Sellers must have centralized strategies for repricing, product data optimization and syndication, advertising, analytics and connections to fulfillment and shipping partners,” said Hearn. “A centralized, multichannel commerce platform helps you expand more efficiently by connecting to new sales channels, managing product content and data feeds, advertising and managing inventory and orders.”

Readers can also view case studies from B2B marketplace ShapeConnect and HVAC distributor Watsco, as well as Unilever, one of the world’s biggest and oldest consumer brand manufacturers. B2B e-commerce is now a digital growth driver for Unilever, with sales on their B2B platforms growing 69% already in 2022. 

The B2B marketplace movement is here to stay, judging by the growing relationship between buyers, sellers and marketplaces. More than that, business marketplaces have become a digital commerce staple that B2B brands and retailers can’t afford to ignore. 

Download the full 2022 B2B Marketplaces: Growth and Trends report to learn more. 

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B2B marketplaces are more popular than ever and showing no signs of slowing. According to recent research by Digital Commerce 360, collective sales on B2B marketplaces grew 130% year over year in 2021 to $56 billion, making them the fastest growing segment in B2B e-commerce.

To discuss how B2B companies can leverage marketplaces to meet B2B buyers where and when they shop, Digital Commerce 360 spoke with Bradley Hearn, product marketing manager at Rithum.

Why are marketplaces so important to B2B companies now?

Marketplaces are an optimal channel option for both consumers and sellers. B2B buyers increasingly believe that making purchases for work should be just as easy as making purchases for themselves. So they’re turning to marketplaces for the optimized, secure, friction-free consumer experience they’re used to.

What is driving this growth?

Evolving consumer behavior. B2B buyers are purchasing more like B2C consumers, which means the path to discovery and purchase is becoming more diverse. In the past, a buyer just called their sales rep or logged into a proprietary portal. Now they can search Google, browse Amazon, look on manufacturer sites, or search in specialty marketplaces. While some larger marketplaces focus on B2B, such as Amazon Business, there are more B2B sites opening up their own marketplaces to expand selection and offer complementary products and services.

What typical challenges do B2B companies face when implementing marketplace initiatives?

First, taking a holistic approach to your marketplace efforts. In the early days of marketplaces and channel management, it was all about connections, product data, inventory quantities, and

orders. But simple channel management isn’t enough for brands that want to stand out. Sellers must have centralized strategies for repricing, product data optimization and syndication,

advertising, analytics, and connections to fulfillment and shipping partners. 

Thinking holistically about your marketplace strategy also leads to a more basic challenge: deciding the best marketplaces for your products. It’s easy to say that you want to list on 50 marketplaces, but each comes at a cost — whether it’s warehouse fees, advertising costs, shipping products to a new country, and many other considerations.

What strategies or technologies will help them overcome these challenges?

Successful companies provide great experiences for today’s consumers. That means consistent product content across all channels, an easy purchase process, and shipping options that meet their expectations.

A centralized, multichannel commerce platform helps you expand more efficiently by connecting to new sales channels, managing product content and data feeds, advertising, and managing inventory and orders. And it should include analytics that highlight performance, enable action and provide insight into the competitive landscape.

Rithum’s platform connects brands and retailers to hundreds of channels including marketplaces, retailers, web stores, advertising and social sites, and fulfillment partners. It provides the capabilities necessary to effectively merchandise products, advertise, manage orders, keep an eye on the competition, and optimize results through sophisticated analytics and automation. This makes it easier for sellers to experiment and remain agile in their e-commerce efforts. 

Read more about B2B marketplaces in Digital Commerce 360’s new report, B2B Marketplaces: Growth and Trends. 

The post The Rise of B2B E-Commerce on Marketplaces appeared first on Rithum.