B2B eCommerce in India- Scopes & Opportunities in 2021
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For years in the eCommerce sphere, the B2B sector has attained growth and canopied the market without much trouble. The B2B sector in India is still budding. Here we are going to talk about B2B eCommerce in India and its scope and opportunities of going global.
B2B (business to business) eCommerce means when two trade entities are involved with each other in commercial transactions.
Unlike B2C, B2B transaction takes place on a bigger level. Here two whole businesses are involved instead of an individual who is the consumer.
Some of the points that differentiate B2B from B2C are:-
- Decision making
- Content and marketing strategy
- Relationship with customers
- Solution providing
Through this blog we will guide you through the B2B eCommerce trends, top B2B eCommerce marketplaces in India and how you will create a B2B E-commerce Marketplace for your business.
History of B2B eCommerce in India
B2B eCommerce in India saw its start with IndiaMart almost two decades ago.
It all started with the wave of internet flooding in and as the tide rose, so did the trend and opportunities of B2B eCommerce.
As the cost of broadband connections, data packages, android phones, and smartphones kept getting reduced while penetrating through the urban and rural community and making its reach in every hand.
By 2023 the population of internet users will reach approximately 876 million.
This has been a boost for the commercial phase of India. It went from being brick and mortar commerce to eCommerce. With the internet becoming a commoner’s dumpling, Mcommerce has become viable.
Plus with the occurrence of various technology hikes e.g AI (Artificial Intelligence), VR(Virtual Reality), AR (Augmented Reality), etc. these have also been supporting poles when it comes to the popularity growth of eCommerce sphere.
There was a need for a platform that was a trusted source to make bulk purchases and then a medium to get it shipped. All this was challenging but B2B eCommerce was here to thrive.
For anyone who is looking to make an acquisition for business purposes, B2B eCommerce platforms became the solution. It provided a podium to all those manufacturers and sellers who are into making goliath sales.
The wholesalers or other business entities who want to save the cost of middlemen also got a medium to look up to.
To know how the growth of B2B eCommerce has been through all these years in India let’s look at India’s top online B2B portals.
What are the top B2B Portals In India
Established in the year 1996, by Dinesh and Brijesh Agrawal, with a spawning capital of ₹ 40,000 now IndiaMart is the most popular Indian B2B eCommerce marketplace holding60% market share of the online B2B Classified space in the country.
It has been providing B2B, B2C, and C2C services through its online portal ever since.
By the year 1999, the listing crossed the mark of 1000 and presently it has 60.73 Million + Products & Services.
TradeIndia is also one of top India originated portals, established in the same year as Indiamart. This entity was started by Bikky Khosla who is presently the chairperson of the eCommerce committee in India.
From 1990-96, before going online, TreadIndia was publishing Exporters Yellow Pages (a directory, or a section of the directory, that’s printed on yellow paper, and lists businesses & other organizations corresponding to the products or services they provide.)
The portal provides information about sellers and buyers around Indian and the globe. It has more than 12,000 product categories and subcategories.
This Delhi-based B2B eCommerce Portal has been serving people with the means to their needs for approximately 10 years.
Acting as an online directory for retailers and manufacturers from more than 20 countries.
Treadkey India still has a long way to go but it has a lot of potential and good service to satisfy its clients.
Other than these India Originated B2B eCommerce portals, some are, that have found a generous growth in India, E.g-
Alibaba expanded its branch here as well upon sensing ensuring that the Indian eCommerce market has potential though it is fragmented.
Found in the year 1999 in China, Alibaba is the world’s largest B2B company and Alibaba Group Holdings Ltd. is the world’s largest B2M (Business To Many) Company.
According to Economic Times, the previous year, the Co-founder and chairperson of Alibaba, Joseph C Tsai, India is a potent eCommerce Business exposition but it still has to grow a lot.
Alibaba has invested around $2 billion in the Indian eCommerce companies like One97 that operates with eCommerce platforms like Paytm, BigBasket, Snapdeal, Zomato, etc.
Amazon decided to grab the edge provided to the Indian B2B eCommerce section through FDI and has started.
Founded as music records and movie DVDs selling company in 1994, Amazon has now become a multi-level eCommerce marketplace that provides Numerous services including AI assistant, Cloud computing, the multivendor marketplace, etc.
B2B Sector- Market Analysis
Coming to Alibaba’s investment in India, Tsai admitted that the exposition is scattered in tittles. It undoubtedly has potential that will still take time to get to full bloom.
Since the data about the wholesalers, manufacturers, buyers, etc. can’t be found in one place, B2B portals come as a savior salvaging you on the wastage of time and capital.
You might have ordered to individually contact a lot of vendors and request quotes from them, followed by the bargaining procedure and then finding the mode of transportation to get the goods wherever you wanted them.
The opportunity of these Indian B2B eCommerce entities and the other budding industries in this sector is quite wide since there are not many giants of B2B in India. B2B portals save a lot of time for the business entities that are a very important factor for them. Therefore, the chances of the B2B market growing in India are good.
Also there are no restrictions on FDI for the B2B sector. Entrepreneurs are looking towards setting their feet in this field.
How does one start a B2B E-commerce Marketplace? Or How to create a B2B marketplace?
To begin with B2B Marketplace, first, you have to comprehend that what really a B2B E-commerce marketplace requires. B2B (business-to-business), which is otherwise called e-business, is the trading of items, products, or services between organizations, rather than between organizations and shoppers. In your day-to-day activity, it very well may be comprehended with the idea of trade of products or services among wholesalers and retailers.
For dealing with a B2B Online Website, you will require a stage that can deal with the multivendor marketplace. An eCommerce marketplace where various sellers will have the capacity to trade the items and balance out a B2B Online Website.
Indeed, there are various open-source stages accessible which permit wide adaptability and transparency. You can likewise broaden or upgrade the functionalities and can alter it as per your prerequisites.
To Know More About B2B Marketplace and Feature Of Our B2B Marketplace Extension read this Blog: B2B Online Marketplace With Various Features Brings Out The Best
Are you thinking of getting a website similar to any of the websites illustrated above? It’s the right time to do it, credits to the immense eCommerce scope. We are here to help you build your ideal B2B e-commerce website.
CedCommerce has been offering the necessary technical solutions specifically made for building one such platform. CedCommerce’s B2B extensions are ready-made and reasonably priced solutions for building a website like Alibaba or websites like IndiaMart. A B2B eCommerce business website armed with these features is undoubtedly going to possess the best in class features.
With B2B Marketplace Extension being accessible for any Magento 2 platform, it’s a great opportunity to consider the advantages these tools could bring to your business as you hope to connect with, win, and hold your B2B client base to drive a twofold digit development in advanced trade stages through 2020.