B2B marketplace sites have progressed and emerged successfully with the advent of technology, media, and AI. This success, however, is not easy to achieve especially for emerging B2B marketplace platforms. There are numerous obstacles that can hinder the growth and development of B2B marketplace websites. In this blog post, we will look into the major challenges faced by B2B marketplace sites and platforms-
Even one negative transaction in B2B can harm the business and impact the supplier badly which, in turn, affects the B2B marketplace platform. Because of the increased risk associated with B2B transactions, significantly greater attention is placed on reliability and credibility when selecting a supplier. This focus leads to strong supplier-buyer relationships that are challenging to break, lengthier sales cycles, and, in certain situations, a hesitation to communicate online.
Furthermore, higher average order values convert into more complicated workflows, which include negotiation-based pricing, complex payment, personalized orders, and multiple-party agreements. This makes it more difficult for B2B marketplace sites to get online purchases. B2B marketplace sites must add more quality to their services in order to obtain these transactions. To make buyers feel safe with processing big amounts, B2B platforms should constantly aim for credibility by screening vendors, regulating the supplier relationships, or, adopting a controlled platform structure.
Easy and safe payments not only have an important part in the user experience, but they must also adhere to global economic and legal standards. When compared to B2C marketplaces, the average order amount and frequency of purchase in B2B markets could be significantly higher. Other distinguishing elements include the different payment systems used in each country, pricing differences depending on the number of products, and varying conditions per supplier. This frequently results in a delay of many weeks between order and payment.
Another key issue that B2B marketplace platforms face is the retention and management of customer connections. If a B2B marketplace platform wants to stay ahead of the competition, it must maintain contact with every client. If an existing client has not made a purchase in a long time, the B2B company must be prepared with an approach by incorporating CRM (Customer Relationship Management) systems with their B2B eCommerce marketplace platform. This combination is critical since it manages customer relationships, rapid operations, and general interactions.
B2B marketplace platforms have to handle the difficulty of rapidly and effectively managing and distributing large-scale goods. In order to meet client requests, B2B marketplace sites typically use specialized transport services, which increases the massive cost to orders and delays product delivery. As a result, it is critical for B2B marketplace companies to allow customers to know correct shipping prices as well as estimated delivery times.
Most B2B marketplace platforms build their pricing model on order size. This, unfortunately, poses a difficulty to the order management processes. B2B marketplace companies can use CMS (Content Management Systems) to tackle the problem and provide offers when a certain buyer purchases a certain number of units. There are numerous pricing systems that allow you to offer a bespoke pricing model to your buyers who shop regularly or in volume. You can also have an algorithm in place that automates predetermined discounts and offers at a particular number of items.
Advancement in Technology
This is one of the most significant issues that B2B marketplace platforms encounter. The B2B marketplaces sites are not fairly consolidated for suppliers and customers, the web pages are not up to standard, the product information is not as thorough as in B2C, the browsing situation is further affected due to a lack of appropriate use of keywords and phrases, and the price range is not competitive. B2B marketplace sites have to stay updated and move ahead with technology in order to stay in business.
B2B buying processes are far more sophisticated than those of B2C. The sales cycle in B2C is short in comparison to the B2B sales cycle. On a B2B marketplace platform, the odds of an impulse purchase, which are rather significant in the B2C market, can be reduced to zero. A streamlined marketing strategy is required for generating leads in the B2B marketplace platform in order to create a genuine relationship with customers for the long term. Leads have to be authentic and sales-qualified for the growth of the business. In B2B, it is not easy to generate leads that will ultimately convert into loyal customers.
In addition to all of the problems, staying ahead of the competitors remains a significant challenge for B2B marketplace platforms. They have to compete with a large number of competitors in the market. Not only must B2B marketplace sites persuade customers to use their website, but they must also encourage suppliers to invest in their platform. Perhaps, the roadmap for B2B marketplace platforms is still under construction. But one thing is certain, there is seemingly limitless potential in B2B marketplace sites.
Global Trade Plaza is a leading and fastest-developing B2B marketplace website in India. They have successfully overcome various hindrances and challenges and established themselves as one of the finest B2B marketplace platforms in India. They also offer a vast variety of services and solutions to their clients at affordable prices.