B2B purchasing habits are changing the way sellers engage their customers, and marketplaces are at the digital forefront. In our with B2B Online, Oracle Commerce Cloud, and WBR Insights, we made some uplifting discoveries about how age groups among B2B buyers are redefining B2B sales. Digital channels, including marketplaces, have emerged as the clear, transformative favorites among the youngest buyers in the workforce—Millennials, born from 1977 to 1995.
As tech giants like Amazon enter the B2B distribution sector, traditional companies have responded with two broad strategies: digital innovation, and mergers and acquisitions. But those two terms cover a breadth of activity, not all of which will be equally helpful in competing with Amazon Business. The success of either approach depends heavily on how deeply a company understands the nature of Amazon’s threat.
It's hard to conceive, and yet it makes perfect sense. With Forrester's most recent B2B eCommerce sales forecast estimating a modest 6-8% year-over-year growth for the next 5 years, Amazon's gone and done it: 900% increase in 2 years.
Last year we wrote about the Spring of B2B Marketplaces: how they were beginning to prosper and what this meant for the industry. This year we’ve teamed up with Roland Berger and Webhelp to bring you the next step in this evolutionary journey. Read on for a snapshot of what to expect and some of the key findings we unearthed.
When Amazon Business launched, it was hailed as a major threat to B2B distributors and a key strategic priority for Amazon’s growth. Within a year the marketplace had surpassed $1 billion in sales, and was reputed to be growing at 20% month over month.* Featuring hundreds of millions of products, bulk discounts and two day free shipping, Amazon Business literally meant business. Two years later, and with the rollout of their marketplace across some of the world’s most influential retail markets US, UK, Japan, India, and recently in France, we’re asking what’s the big deal about Amazon Business and is it all it’s cracked up to be?
Mirakl is proud to be sponsoring B2B Online because we firmly believe that every B2B company can benefit from a marketplace. Whether you are a manufacturer wanting to convert site visitors without upsetting your channel, or a distributor needing long-tail assortment and 100% inventory visibility across both internal divisions and external suppliers, a marketplace is the right solution for you. Come check out Mirakl at booth #304!
Manufacturers contributed $2.17 trillion to the U.S. economy in 2015, according to the National Association of Manufacturers. With consistent growth, this sector is heralded as a major source of jobs, and economic development. But, many manufacturing firms and B2B distributors are faced with changes in the very fabric of how they do business - the way in which customers buy.
Global B2B eCommerce sales are projected to reach $7 Trillion by 2020, according to Frost & Sullivan.
That’s $7,000,000,000,000 (and that’s a lot of zeros.)
The online shopping experience has never been better, thanks in large part to Amazon. The company’s unparalleled focus on delivering first-class customer experience has given consumers greater expectations in terms of service, delivery, choice and price transparency.
Amazon would not have been able to achieve such tremendous results without launching its online marketplace, providing increased product choice, competitive prices and superior customer experience, without the restraints of inventory and logistics.