Transaction services: Middlemen aim to smooth bumps in trading relationships
B2B marketplaces reckon they can reduce risk for buyers and sellers without undermining the relationship between trading partners.
Online business-to-business marketplaces are growing in number, and many are thriving. According to a recent report published by market research company Forrester, the value of B2B e-commerce in the US alone will reach $1.8 trillion by 2023, up from $1.1 trillion in 2018.
The report does not specify how many new marketplaces have emerged, but even a brief online search reveals a lengthening list of platforms. These will no doubt have been encouraged by the report’s observation that 70% of business customers now prefer to buy from a website rather than from a salesperson. This growing preference for a self-service model accessible around the clock is a strong driver for B2B marketplace growth.
Established platforms such as Thomas and Amazon Business are being joined by newcomers such as HUBX, Dropee and BaloTrade.
Ademola Balogun, CEO of BaloTrade, says that the advantages of conducting B2B transactions online through a platform like his are the quicker sourcing of goods and a lower cost of finding suitable partners.