Not long ago, B2B marketplaces were considered a minor sales channel. Although they emerged in the late 1990s and early 2000s, sectors like automotive parts, healthcare, and aerospace struggled to find success in this space. Only a few, such as Boeing Global Services—which now partners with 6,000 global suppliers and generates $2 billion in ecommerce sales—made significant strides.
However, times have changed. Just five years ago, there were only 75 B2B marketplaces, according to Digital Commerce 360. Today, there are more than 600 across diverse industries, and that number is still rising. Projections suggest that the global number of B2B marketplaces could surpass 1,000 within the next few years, according to data and analysis contained in the newly released 2024 B2B Marketplace 750 Report from Digital Commerce 360.
Companies like Sysco Corp. (food-service distribution), Advanced Spirits (whiskey distillery), Wabash (freight trailers), and Science Exchange (laboratory supplies) have all tied their growth strategies to industry-specific B2B marketplaces that cater directly to their buyers and sellers.
The Challenges of B2B Ecommerce
B2B ecommerce can be complex for both buyers and sellers, as demonstrated by the spirits industry. Houston-based Advanced Spirits, a distillery and services company, recently launched Barrel Hub, an ecommerce platform for the wholesale bulk whiskey market. Similar to other B2B marketplaces featured in the DC360 report, Barrel Hub offers tools that streamline the purchasing process.
“One of the most pressing questions buyers and sellers face is pricing,” says Advanced Spirits president Rob Arnold. “What’s the current value of a whiskey barrel?” To address the lack of transparency in the wholesale whiskey market, Barrel Hub introduced a bidding feature, allowing buyers and sellers to collaboratively set fair market values.
At Science Exchange, CEO Elizabeth Iorns highlights their supplier orchestration platform, which integrates with P2P (peer-to-peer) and ERP (enterprise resource planning) systems. “Our platform automates the entire supplier collaboration process, from intake to payment,” Iorns explains. This improves project execution, compliance, and cost efficiency, accelerating the development of therapeutics.
Key features of Science Exchange include:
- Access to a network of 3,800 suppliers under a standard legal agreement, with the option to synchronize existing suppliers.
- Automated guided buying tools that ensure compliance with purchasing and third-party risk management (TPRM) policies.
- Customizable workflow automation that supports purchasing and compliance across various sites, teams, and categories.
Trends Shaping the Future of B2B Marketplaces
As the B2B marketplace landscape evolves, several key trends will continue to drive growth:
- The number of vertical marketplaces (now at 500) will keep increasing.
- Existing marketplace operators will rapidly add features to turn first-time users into repeat customers.
- Commercial marketplaces, particularly Amazon Business, will fuel broader growth across the B2B sector.
- Investors, both public and private, are becoming more focused on the profitability of B2B marketplace ventures.
- First-time marketplace builders are facing higher costs and longer timelines to see a return on investment.
Despite these challenges, B2B marketplaces are set to remain the fastest-growing sales channel in the B2B sector. For more on the 2024 B2B Marketplace 750 Report click here.
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