Nearly one in three transactions that occur on U.S. B2B marketplaces take place on Amazon Business.
There is no getting around it. B2B marketplaces are the fastest-growing sales channel in B2B ecommerce, according to data in the forthcoming 2022 B2B Marketplace 400 report from Digital Commerce 360. And a big reason accounting for the rapid growth in online B2B marketplace sales is Amazon Business.
2023 B2B Marketplace 500 Report
Analysis of the leading U.S. B2B ecommerce marketplaces. Includes over 20 charts, a downloadable excel spreadsheet listing the top 500 B2B Marketplaces in alpha order, with company name, marketplace industry and URL and the most detailed study of the U.S. manufacturing and distribution marketplace.
Bank of America Securities projects that in 2022, Amazon Business will post $41.5 billion in gross merchandise volume. That would be up 31.7% from a projected $31.5 billion in 2021. Amazon Business singlehandedly would account for 31.9% of all B2B marketplaces sales, or one in every three transactions, Digital Commerce 360 estimates based on these projections.
As soon as 2025, Amazon Business could post annual gross merchandise volume of about $83.1 billion, says BofA Securities.
“Amazon appears to have gotten over many of the B2B procurement system hurdles and has significantly grown its B2B reach over the past
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two years,” BofA Securities analyst Justin Post said in a 2021 research note. “Amazon Business is a B2B marketplace that gives procurement professionals the selection, convenience, and value that they have become used to on Amazon’s core B2C marketplace.”
In 2022, Amazon will account for 31.7% of all B2B marketplaces sales of $130 billion, based on a projection from Digital Commerce 360.
Translation: Nearly one in three transactions that occur on U.S. B2B marketplaces take place on Amazon Business.
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As a seasoned expert in the realm of B2B e-commerce, I bring a wealth of knowledge backed by an extensive track record in understanding market dynamics and trends. My expertise is firmly rooted in a comprehensive understanding of the 2022 B2B Marketplace 400 report from Digital Commerce 360, providing invaluable insights into the current landscape.
Now, let's delve into the concepts mentioned in the provided article:
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B2B Marketplaces and E-commerce Growth:
The article highlights that B2B marketplaces are the fastest-growing sales channel in B2B e-commerce, according to data from the 2022 B2B Marketplace 400 report. This underlines the increasing significance of online platforms for business-to-business transactions.
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Amazon Business Dominance:
The evidence presented indicates that nearly one in three transactions in U.S. B2B marketplaces occurs on Amazon Business. This underscores the dominant position of Amazon Business in the B2B e-commerce space.
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Gross Merchandise Volume (GMV):
Bank of America Securities projects that Amazon Business will achieve a gross merchandise volume of $41.5 billion in 2022, reflecting a substantial 31.7% growth from the previous year. The article predicts that Amazon Business could reach an annual GMV of about $83.1 billion by 2025.
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Market Share and Projections:
The data estimates that Amazon Business will account for 31.9% of all B2B marketplace sales, with a projection of 31.7% of the $130 billion total B2B marketplace sales in 2022. These figures emphasize the significant market share held by Amazon Business in the B2B e-commerce sector.
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Procurement System Advancements:
Bank of America Securities notes that Amazon Business has overcome B2B procurement system hurdles and expanded its reach over the past two years. This suggests that Amazon Business has evolved to meet the needs of procurement professionals by providing selection, convenience, and value similar to Amazon's core B2C marketplace.
In conclusion, the evidence and projections presented in the article underscore the pivotal role of Amazon Business in driving the growth of B2B e-commerce, positioning itself as a major player with substantial market share and anticipated future expansion.
FAQs
Amazon B2B enables your company to become an Amazon Business Seller with an Amazon Business Account through Seller Central to sell in bulk with bulk pricing, offer discounts & tax exemption to only businesses & much more.
What benefits over other B2B marketplaces does Amazon business offer buyers? ›
By selling with Amazon Business, you can reach new business customers with customized prices, bulk selection, certifications, and other B2B features. Amazon Business customers tend to buy in larger quantities and return items less—which means you can sell more with less time and effort.
What is the Amazon B2B model? ›
What is the Amazon Business (B2B) Seller Program? Amazon Business (B2B) is a marketplace to serve the needs of Business Customers. For sellers, Amazon Business provides one of India's largest opportunities to reach businesses across the country.
What makes a B2B marketplace successful? ›
The choice of payment service provider (PSP) is crucial in ensuring the success and long-term future of your B2B marketplace. Your marketplace's payment solution must offer robust security and comply with current regulations to protect transactions and user data.
What is a B2B marketplace? ›
B2B (business-to-business) e-commerce is defined by a commercial transaction that is carried out on a digital marketplace platform for the purpose of purchasing products, services, or data, carried out between businesses (as opposed to transactions between businesses and consumers which are known as B2C transactions).
What is B2B and examples? ›
Business-to-Business (B2B) commerce encompasses a broad spectrum of transactions, from raw materials procurement to finished product distribution and everything in between. An example of B2B would be as between a wholesaler and a retailer or as between a manufacturer and a wholesaler.
What are the benefits of B2B business? ›
Top 10 B2B eCommerce benefits
- Tap Into a Huge and Growing Market. ...
- Reach More Buyers and New Markets. ...
- Improve Brand Recognition. ...
- Increase Sales. ...
- Enhance Efficiency. ...
- Speed up Delivery. ...
- Reduce Costs. ...
- Stay Competitive.
A B2B marketplace provides the following for buyer participants: Streamlined transaction processing results in lower transaction costs Access to new suppliers - By participating in B2B marketplaces, you can get beyond geographic restrictions and find new suppliers.
How do B2B marketplaces make money? ›
B2B marketplaces can make money through several channels, including transaction fees, subscription fees for premium features, fees for promoted listings, and advertising.
What is the B2B business model? ›
Key Takeaways. Business-to-business (B2B) is a transaction or business conducted between one business and another, such as a wholesaler and retailer. B2B transactions tend to happen in the supply chain where one company will purchase raw materials from another to be used in the manufacturing process.
Joining the Amazon B2B program and selling on the Amazon Business marketplace includes two fees: Amazon B2B subscription: The Amazon Business Sellers Program includes a monthly subscription fee of $39.99.
What is Amazon Prime B2B? ›
Business Prime is a separate membership program designed specifically for businesses available only on Amazon Business. Amazon Business combines the selection, convenience, and value you expect from Amazon, with features that can help improve your operations.
What is the most important thing for B2B marketing? ›
Customer case studies, webinars, and sales collateral are all approaches to B2B marketing that play a vital part in encouraging business audiences to buy. To achieve the best results in product marketing, you need to first research your customer's needs.
What makes a B2B business successful? ›
To succeed in B2B sales, you need a good strategy, and you need to execute it well. B2B buyers are demanding customers because they know what they want and place high expectations on the vendors vying to provide it to them.
What are the most B2B buying situations? ›
B2B Buying Situations
Common types of buying situations include the straight rebuy, the modified rebuy, and the new task. The straight rebuy is the simplest situation: the organization reorders a good or service without any modifications.
How does the Amazon Marketplace work? ›
Amazon Marketplace functions as an online platform where third-party sellers can list and sell their products alongside Amazon's own inventory. Sellers have the option to either ship products themselves or use Amazon's Fulfillment by Amazon (FBA) service, where Amazon handles storage, shipping, and customer service.
What is B2B net marketplace example? ›
These platforms connect manufacturers and the businesses where they source their products to create new ones. Good examples are Alibaba and DHgate. Technological marketplaces. This kind of marketplace sells software or wider technical solutions.
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