The Business 2 Business market is booming and slowly becoming a lucrative investment opportunity for business owners and individual stock-pickers alike.
The B2B market has grown from $1 trillion dollars in 2012 to $11 trillion dollars today, and the market is poised to generate revenue of roughly $18.57 trillion by the end of 2026. There are many factors that have contributed to this growth. Let’s take a look at why investing in the B2B market is a smart idea.
Why Should You Invest in the B2B Space?
The B2B market is said to be growing faster than the B2C (Business to Consumer) market which has been a hotspot for investors for decades.
But why is the B2B market growing so fast?
You see, the B2B market traditionally involved a lot of negotiation and back and forth between businesses.
Business relationships are built over time but this slows down the rate at which business is done. For instance, a typical B2B deal can drag on for months just because of all the back and forth that takes place.
However, the way business is done within the B2B space is changing very rapidly.
The pandemic forced companies in the space to adopt more modern means of transacting such as B2B marketplaces which is ushering the B2B industry into a new era.
Why Investing In The B2B Marketplace Is A Smart Idea.
E-commerce has been a major point of disruption for businesses all around the world and it is currently exercising its disruptive potential in the B2B space in the form of B2B marketplaces.
B2B marketplaces are transitioning from a “brick a mortar” market to an online market space where businesses can carry out sales on e-commerce websites.
In other words, what B2C e-commerce websites like Airbnb and Amazon do is now being replicated in the B2B space, which has introduced a new wave of scalability to the B2B industry.
And due to the prospect of scalability through using B2B marketplaces, they represent an attractive investment opportunity within the B2B space.
Well, firstly, the B2B market is currently unsaturated and getting in now is getting in early.
In developed markets, at least half of all B2B transactions are still done by phone, fax, or in person. This figure is significantly greater in frontier and emerging areas, typically exceeding 90%.
What this means is that anyone getting into the B2B e-commerce marketplace now as an early adopter would experience unprecedented growth.
We can also consider the plain advantages of the B2B e-commerce marketplace and what it has to offer. The B2B e-commerce marketplace gives room to a wider reach of customers, especially sites publishing public-facing catalogs.
The B2B e-commerce marketplace also creates an opportunity for businesses to utilize digital marketing as a tool for generating new leads and ultimately acquiring new customers.
A B2B e-commerce marketplace also means we can leverage software for e-commerce business management which allows us to collect data on customers which would help businesses grow.
Online trading is a major part of what business is today and the B2B e-commerce market takes it to the next level.
Existing customers have a front seat to this as B2B e-commerce marketplaces allow you to set up automated cross-sell and up-sell recommendation programs with ease.
What that means is, when a business makes a purchase on a B2B e-commerce marketplace, the site’s algorithm offers up similar recommendations of goods or services to the business which, in turn, increases the average order value of B2B businesses.
With all the innovations currently taking B2B space by storm, the room for growth is exponential; it’s as close to a sure bet as you can possibly get for making heaps of profit over the next decade.
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