Question 1

What are B2B Marketplaces?

Accepted Answer

B2B marketplaces are everywhere these days. Beginning with the appearance of Uber, the phrase, “gig economy," has been thrown around for years, and it’s spawned thousands of companies looking to capitalize on providing on-demand services via an app or cloud-based software. 
 In general, a B2B marketplace functions much like an e-commerce website by connecting buyers and suppliers. However, the suppliers may be independent contractors or vendors offering their services in an online marketplace. Customers in today’s economy prioritize convenience, and B2B marketplaces offer a variety of choices from myriad suppliers on one platform. The flexibility of having goods or services delivered directly to a customer at any time has created a market for platforms that directly connect buyers and sellers. 
 While many of these platforms may appear to be primarily B2C, behind the scenes the platform is providing businesses (often small businesses) with a means to reach more customers and market their services in a new way. Some platforms, such as merchant marketing software, don’t require businesses to alter their day-to-day operations other than redeeming vouchers at checkout like a gift card. Other platforms, such as on-demand wellness software, may require a business to create a mobile service, sending employees to the customer’s location to perform a service. The advantages of using a B2B marketplace are the increased number of potential customers and the ability to create an online offering without needing to create an e-commerce site.

Question 2

Why Use B2B Marketplaces?

Accepted Answer

B2B marketplaces are primarily used by small businesses and single-person businesses. While large retailers may use a B2B marketplace as a way to move excess inventory, the main focus is often providing a service to customers via small businesses seeking to increase their customer bases. B2B marketplaces also provide a means for business customers (i.e., customers who are also a business) to purchase services from business sellers. On-demand catering software, for instance, primarily provides businesses with catered lunches for employees or meals for events or special meetings. 
 In general, the goal of a B2B marketplace is to improve the customer experience by providing services on demand that are typically scheduled days or weeks in advance or by making it faster and easier to reserve those services in advance. By providing e-commerce platforms for businesses to advertise their services, small businesses can adjust their business model to accommodate customers who are increasingly purchasing more online.

Question 3

Who Uses B2B Marketplaces?

Accepted Answer

B2B marketplaces are primarily built to bring services to customers. However, all of them contain a B2B aspect by providing businesses with a means to either offer their services or purchase services to be used by their employees. 
 Independent contractors, such as stylists and makeup artists, can offer their services online without being tied to a studio space, and brick and mortar stores, such as grocery stores and convenience stores, can sell products via an online platform. While a multi-vendor marketplace creates competition for the featured businesses, it also provides a marketing opportunity. By using social media in conjunction with a B2B marketplace platform, small businesses can generate buzz and reach more customers without breaking their budgets. Many B2B marketplace platforms allow businesses to control their own content, so a business can ensure their branding is consistent across all channels. 
 For businesses looking to provide services (such as catering or massages) to their employees in the office, B2B marketplaces provide a means to find and book these services on a one-time or ongoing basis. HR professionals and those in charge of a company’s finances can use B2B marketplaces to find services within their company’s budget and book them directly on the platform.

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