The progress of B2B marketplaces has been phenomenal in recent years due to the penetration of the internet. This provides an opportunity for several enterprises to set up their eCommerce ventures. B2B marketplaces are platforms available for both online retailers as well as customers.
A multi-vendor B2B marketplace is a platform that is available to multiple enterprises for conducting their online businesses. The customers have the option of buying goods or services of their choice from the convenience of a single platform. There are multiple benefits of the multi-vendor B2B marketplace to the sellers as well as the buyers, which we shall be discussing in this article.
Benefits to the Seller
1. Cost optimization
A B2B marketplace helps optimize the cost of developing an eCommerce platform as it would have the necessary settings in place. It serves as a launchpad, not just for start-ups, but also for small and medium-sized businesses that may not have adequate wherewithal to develop their eCommerce platform. A B2B marketplace is an apt platform to grow your sales, increase your product awareness, get in touch with present and prospective customers and gather their feedback.
2. Improvement in Quality
Multiple vendors in the B2B marketplaces sell products of varying quality which makes it necessary for the B2B marketplace operator to maintain a check on the quality of each product. If a vendor is selling defective products, it might damage the reputation of the marketplace. In a multi-vendor B2B marketplace, quality-related matters are often resolved to great extent by having a scoring system for every seller. For example, several marketplaces such as Amazon, have a scoring system to check the rating of the merchandise as well as the seller.
3. Multi-Vendor Inventory Management
An individual eCommerce start-up will find it infeasible to afford the maintenance of a warehouse for the storage of goods. In a multi-vendor marketplace setup, each vendor can manage its inventory. It eases the financial burden and enables the vendors to focus on scaling up their business and other important aspects of the business.
4. Efficient Logistics
While the vendors are responsible for the quality of their goods, the B2B marketplace takes care of deliveries and logistics. The B2B marketplace facilitates the safe movement of goods and timely delivery. The platform tracks deliveries from all vendors under one roof.
5. Better visibility
Marketplaces advertise and attract more customers than any small business can. Many procurers use marketplaces as industry knowledge bases, and that can provide better visibility to prospective vendors.
6. Entry into new markets
An established B2B marketplace will help a vendor connect with prospective customers who would have no idea of the vendor. Several customers seek to buy goods and services as per specifications, and not necessarily based on loyalty to any manufacturer or provider. The search engine of a B2B marketplace enables a customer to seek products based on specifications. Some customers are willing to buy products that match their specifications even if they are produced by a start-up.
7. Direct contact with the customer
In certain instances, a B2B marketplace helps find customers who may wish to buy directly from the vendor. Once credibility is established, the seller and buyer can directly transact with each other. Such a move helps cut expenses on the marketplace’s margin and benefits both parties.
8. Transaction security
A secure payment gateway, such as Zaakpay, enhances the credibility of a B2B marketplace. Zaakpay is one of the preferred payment gateways in India which is appointed by various B2B marketplaces to collect payments. The payment gateway facility will enable a vendor to feel safe while making transactions on a B2B marketplace. As a vendor, you will experience high transaction success rates at Zaakpay with low payment gateway charges. This will enable you to focus on expanding your business growth.
Benefits for the buyers
1. Finding the best price
Since a multi-vendor B2B marketplace provides price quotations from multiple vendors, it is possible to compare the prices of competing products. Marketplaces also enable buyers to send quotation requests to multiple vendors and choose the best offer. B2B marketplaces can track price changes and alert prospective customers whenever a price for a particular product crosses a certain threshold.
2. Control over procurement
The B2B marketplace also enables a business to have more control over procurement processes, while checking whether the current vendor’s prices are competitive. Marketplaces usually offer a comprehensive product pricing display allowing buyers, without specific professional or technical knowledge, to compare offers.
3. Knowledge repository
A B2B marketplace collates offers from multiple vendors. It enables better significant product selection than most shops, wholesalers, or distributors. B2B marketplaces also tend to provide more detailed and correct information on various products. Multiple B2B marketplaces would also tend to use a variety of payment gateways. There are several payment gateways in India appointed by various B2B marketplaces to collect payments. However, as an entrepreneur, you will get a better sense of efficient payment gateways, such as Zaakpay, by visiting various marketplaces. All this leads to B2B marketplaces serving as market encyclopedias, containing valuable information for businesses.
4. Better customer service
Customer service is a prime factor to watch out for. In a B2B marketplace, the customer complaints are shared on the platform and not directly with the individual vendors or sellers. A B2B marketplace takes care of any issue related to payment, refunds, returns, or replacement demands of a customer. This is where an efficient payment gateway, such as Zaakpay with low payment gateway charges, will come in handy.
The multi-vendor B2B marketplace model provides multiple benefits to vendors, customers, and other marketplace operators. A business that decides to open a B2B marketplace, should take all these points into account and plan accordingly, to increase the benefits while overcoming the challenges.