What are B2B Business Directory, Marketplace and The Best Way to Utilize It

 Global business-to-business (B2B) eCommerce transactions totalled US $18.2 trillion in 2012, consistent with a Statista report1. One of the foremost prominent trends in B2B eCommerce is the rise of the B2B marketplace. The impact of this online marketplace model can't be understated, because it redefined the account between B2B buyers and sellers and acts as a networking point. Because the trend continues to grow, it represents an enormous opportunity for traditional B2B wholesalers and distributors to embrace the web marketplace model so as to urge before their competition.

So, what exactly is a B2B Business Directory and marketplace, what are the major benefits of being part of it, and how do you sell your products successfully on it?

Table of Contents

What is a B2B marketplace?

The meaning of B2B

B2B compared to B2C, C2B, and C2C

The most well-known online B2B marketplaces

Types and Business models of B2B marketplaces

Benefits for suppliers of being part of a B2B marketplace

How to succeed on a B2B marketplace?

What to do next?

Part 1: What is a B2B marketplace?

A B2B marketplace may be a sort of eCommerce platform that brings together B2B sellers and buyers and enables them to try to to business in one place online. a bit like its B2C counterpart, businesses sell their products (usually in bulk with B2B) and other value-added services, but on a B2B marketplace, the sellers are brands, manufacturers, suppliers, and wholesalers, and therefore the customers are other businesses.

These transactions are processed online by the marketplace operator. Depending on the various natures of B2B selling, a B2B marketplace also can be called other names, including a B2B trading platform, B2B procurement or sourcing website, B2B portal, multi-vendor marketplace, B2B catalogue and directory, Business Directory Malaysia, Malaysia Business Directory and more.

The meaning of B2B

Before we get into more details, let’s first review what “B2B” means. The abbreviation “B2B” simply stands for “business to business.” It generally represents a business model that involves companies that perform services or provide products for other businesses instead of individual consumers. In recent years, the term has become synonymous with online trading and may also apply to Software as a Service (SaaS) products, B2B marketing companies, and other business supply companies.

If you're involved an SME (mid-size enterprise), it's highly likely that you simply will interact with a B2B company at some point in your professional life. That’s why it’s of high importance to realize a far better understanding of the principle.

B2B compared to B2C, C2B, and C2C

To further investigate the definition of what a B2B company is, it’s useful to match B2B with other sorts of sales like B2C, C2B, and C2C.

Business-to-consumer (B2C), also referred to as retail sales, sells on to individual customers. it's an easier business transaction with lower volume, a hard and fast price, and fewer administration.

In consumer-to-business (C2B), consumers offer facilities and values for business to consume, like customer reviews or influencer marketing.

Consumer-to-consumer (C2C) is when two individual citizens sell to every other. The classic example is the way eBay wants to be at the start.

B2B companies have a completely different audience and offer the products, raw materials, semi-finished parts, finished parts, services, or consultations that other businesses got to operate, grow, and profit. Let’s draw a better comparison between B2C and B2B sales to assist you understand why a B2B marketplace offers a special experience catering to the unique needs of B2B buyers and sellers.

B2C sales usually feature:

Spontaneous or quick purchases

Fixed pricing

Low-volume orders

Products are sold “as is”

Immediate payment

Simple shipment

Simple/no paperwork

B2B sales do have few complexities that differentiate them from the normal B2C business model, which all need to be taken into consideration when building and managing a successful B2B marketplace.

Long purchase cycle

Price can vary depending on product changes and the quantity of items

Bulk sales usually; have the need for samples

Product can change: labelling, OEM, ODM

Different payment types and international payment issues

Logistics and distribution issues

Document and bureaucratic issues

The most well-known online B2B marketplaces

There aren’t a lot of notable B2B marketplace platforms available today, mainly due to the intricacies of building the smart technology and gaining a trustworthy reputation from whole and bulk suppliers and buyers over years. In no particular order, here is a small list of some of the top B2B multi-vendor directory and marketplaces:

Alibaba.com

TradeMalaysia.com

Amazon Business

eWorldTrade

Global Sources

ThomasNet

EC21

IndiaMart

It is worth having more research to check if any of those top marketplaces have the buyer base and popularity, latest tech and tools to support business leads and selling, and other value-added supplier and buyer services that serve your specific selling goals. Or, you may get other types of marketplaces in your niche.

Types of B2B marketplaces and their business models

There are several types of B2B marketplaces which depend on the structure of the business participants and other diverse factors.

Vertical versus horizontal marketplaces

Vertical marketplaces, also known as “vortals” (vertical portals), specialize in a single category of products or a particular sector of industry. Horizontal marketplaces like TradeMalaysia- business directory malaysia sell products and services of different kinds, appealing to the requirement of buyers across different product and service segments or sectors.

One-to-many versus many-to-many marketplaces

A one-to-many marketplace is usually managed by a single procurement company. For example, large automobile manufacturers like Nissan and General Motors can set up their own ecommerce marketplace where their suppliers can be given access and submit bids and quotations for what they are requesting for.

Many-to-many marketplaces concept may be more familiar to you, where both, buyers and suppliers are of different entities and the b2b marketplace is fully managed by a third party. TradeMalaysia.com and Alibaba.com fall into this category.

Local versus global marketplaces

In terms of geography, we differentiate between local and global B2B marketplaces. While on local marketplaces, companies supply only to their local market, whereas global marketplaces facilitate the exchange of products and services unrestrained by geographic boundaries. This poses a greater risk and challenges to run a successful global marketplace, because it has got to tackle additional issues associated with international payment, cross-border trade and logistics, language and communication barriers, and more.

Whether you plan to venture on your own B2B marketplace or sell with big B2B platforms, other important things to understand about are the business models and sources of revenue for such a business. Here we list the three commonest business models in B2B marketplaces:

Commission-based business model

For every successful order a seller gets from the online b2b platform, they pay a fixed percentage as commission to the marketplace operators. The marketplace may charge different cuts counting on the sort of products, category of products, order volume, value of the cart, and other trade variables.

Subscription-based business model

The marketplace charges a membership fee from the sellers to allow them to use its platform for business. This model is more common in gigantic B2B trade marketplaces with many repeat customers. The marketplace may offer some additional value within the subscription packages to draw in more memberships. This might include dedicated account management services, greater visibility into products in catalogue, access to exclusive categories, advertising features, logistics assistance, and more.

Listing fee business model

This model is somewhat more like pay-per-view, as usually seen in video streaming platforms. The B2B wholesale marketplaces that follow this model generally ask suppliers to pay an extra fixed or percentage of amount as a listing fee for posting a product to sell.

Part 2: Benefits for suppliers of being part of a B2B marketplace

Currently, 75% of B2B purchases are already made online2, and more and more businesses are leveraging online channels to conduct product sourcing and procurement. For suppliers, being a part of a B2B marketplace represents an enormous potential to require your sales and business to subsequent level. If you're not convinced yet, keep it up reading to find out more about the advantages of selling on a B2B marketplace.

Build your online presence

Digitizing your entire catalogue already gets you before tons of your competitors who still adhere to the normal in-person ways of B2B sales. By showcasing your products online, it increases your chances of reaching qualified buyers and shutting big deals. It’s also almost like being during a global trade fair which runs 24/7 and three hundred and sixty five days per annum, and you're always present and visual.

Capitalize on existing buyer demand and expand your network

Millions of B2B procurement professionals are already actively shopping on leading B2B marketplaces. The B2B marketplaces offer B2B buyers the ease of convenience and confidence of engaging and buying from many verified and trusted suppliers on one centralized platform. If you don’t have the time and resources to take a position in reaching customers across offline and online channels on your own budget, choosing to sell on a B2B marketplace can take the get rid of your plate and help effectively expand your network.

Low costs

The access to a B2B marketplace usually includes a coffee initial cost that any company of any size can afford, no matter the business model of the platform, as within the structures of seller fees. It also gives suppliers the chance to decrease operating expenses. They not have to update lengthy printed catalogues or spend money on traditional marketing channels.

Easy set-up

B2B marketplaces feature a uniform interface and easy-to-use seller portal, where you'll simply load your business and merchandise information to urge your online business up and running. Marketplaces integrate product management, CRM, shipment, and payment solutions or services. The event and integration of such sophisticated systems to your own website, instead, might be expensive and time-consuming.

Test out new products

Managing your products during a centralized online portal makes it easier than ever to urge obviate obsolete inventory and SKUs. With a B2B marketplace, your own sales data are often readily accessible to assist inform your development or selection decisions. The marketplace portals often provide sales-trend insights and aggregated data for various segments or industries, so you'll adapt to the sales trends and luxuriate in “first mover” benefits, especially in times of crisis.

Expand your customer base globally

Modern B2B trading marketplaces support localization settings and configurations. For instance, they will display your products in several languages and integrate translation tools or services to the platform. They also offer solutions and services to require care of the complexities of international transactions and logistics. During this way, wholesalers and makers can have the convenience to access a wider range of audiences and develop new contacts everywhere the planet, without the necessity for becoming an expert in cross-border trade themselves.

Access to foreign markets for SMEs

The low start-up costs of B2B marketplace platforms have allowed SMEs to start out selling their goods and services internationally as no other has within the history of the business. Employing a B2B ecommerce marketplace is cheap thanks to promote your products. Small businesses not need to take expensive trips round the world to secure business deals and may also display a good array of products.

Increase customer service and loyalty

Good online B2B platforms assist you facilitate connection and conversation together with your buyers and allow you to own your business relationships. Digitized solutions allow you to manage your relationship during a more efficient way and timely manner. Less time spent on fielding leads and orders over phone and email will leave longer to drive your business growth.

Part 3: How to succeed in a Global B2B marketplace

We’ve talked about the definition and kinds of B2B marketplaces. We’ve also explored the advantages of selling on a B2B marketplace Malaysia business directory. Now, let’s outline some strategies you'll apply to make sure you sell successfully during a B2B marketplace.

Build trust

Do all steps required so the buyer on the other side of the world who never meets you face-to-face will believe in you. This includes:

Completing your company profile

Verifying yourself through verification or authentication processes

Showcasing other information that authenticates your business, such as certificates, licenses, awards, or photos of your factory, office, and employees.

Post and manage products

High-quality product posting helps you stand out from the gang. Use descriptive keywords in your product name/title and descriptions to optimize for rankings within the marketplace platform. Use well-designed images and videos to draw in buyers and help them develop a holistic understanding of your products.

Be flexible and adaptive

Flexibility will enable your business to thrive and evolve. Staying in-tuned with and adapting to your customer’s needs will offer you a singular advantage. Such flexibility may include offering product customization, price modification, and personalized responsive services.

Offer logistics and customs clearance advice

Make sure that you simply can advise your customer on the simplest way that you can ship/ freight the delivery. Also, you'll help customers gain knowledge of the principles and regulations required for the products to be exported into certain countries.

Respond to inquiries

Without business inquiries, there can be no orders. So always ensure that you deal with inquiries in a strictly professional, organized, and timely manner.

Use feedback to optimize your offer

Positive feedback and testimonials from your customers can help your business to gain trust and definitely help to build your client base. Encourage all your customers to leave feedback. Even their negative feedback can help you understand what went wrong with your deal.

Offer sample products

Potential customers may like to check the actual quality of a product before making a bulk purchase order. You can facilitate this by providing a product sample.

Respect your potential buyers

You will have to show respect, professionalism, and interest to any business inquiries regardless of the size of order or the company that contacts you. After all, if you serve them nicely, you will grow together!

What to do next?

The competition is getting harder within the online B2B market space, while the opportunities are vast. For many businesses across the globe, selling on a B2B eCommerce marketplace is the best way to expand their B2B network and grow sales. It can be especially very helpful for SMEs who generally have a limited and small marketing budget to gain the best possible sales results in the short- and medium-term.