B2B Marketplaces, the Fastest-Growing Digital Commerce Sales Channel, Are Dramatically Changing B2B Procurement
Stamford, CT, October 9, 2024 – The B2B marketplace model, the fastest-growing digital commerce sales channel, is dramatically changing the world of B2B procurement. In fact, B2B marketplaces are growing seven times faster than traditional e-commerce. B2B marketplaces are the future of B2B sales.
B2B marketplaces are providing customized solutions and products catered to specific sectors – like food/grocery – and offering significant benefits for suppliers, distributors, retailers, and customers. Just as Amazon became a B2C powerhouse by offering a fast, easy shopping experience with a huge product assortment, B2B marketplaces offers similar ease and convenience for B2B transactions, with curated, high-quality products and sellers on a national level.
- Suppliers – including new and emerging brands that would not otherwise have national distribution – can expand their assortment in a scalable way, expanding customer reach, increasing geographic coverage, streamlining processes, facilitating distributor relationships, and reducing labor costs.
- Distributors can use B2B marketplaces to offer thousands of diverse products to their customers.
- Buyers enjoy fast, easy, convenient access to a wider range of products, better product availability, flexible delivery, and exceptional customer service.
Just as Amazon has dramatically elevated the B2C sales process, B2B marketplaces will improve the online B2B sales experience. While the adoption of e-commerce has been much slower in the B2B market than the B2C market – due largely to the complexities involved with B2B sales – this model is now increasingly adopted and embraced.
“B2B marketplaces are a really interesting and growing trend,” said Tony Lee, Founder of SFP – one of the largest B2B marketplaces that successfully works with grocery distributors, suppliers, and retailers.
According to Tony, key benefits of the B2B marketplace for the food/grocery industry include:
- Improving propositions for suppliers, distributors, and customers. B2B marketplaces are a winning solution for suppliers, distributors, and customers. B2B marketplaces allow suppliers to get instant national distribution. For customers, this is an easy one-stop shop.
- Elevating processes. The marketplace handles all sales logistics, including payment, shipping, invoicing, and marketing. Brands have a unique, hassle-free opportunity to sell their items directly to retail customers – an innovative approach that’s already proven to be successful for many suppliers.
- Improving product distribution. With marketplaces, even emerging or specialty food brands can sell their products to retailers nationally and instantly, without worrying about the logistics of moving inventory to distributors around the country. Additionally, marketplaces simplify the selling process, allowing suppliers to close sales faster. In contrast, without the marketplace, it can take brands multiple years and millions of dollars to access the distribution channels they can instantly get through B2B marketplaces.
- Decreasing costs, hassles, and worries. Marketplaces do the important behind-the-scenes work, handling marketing, selling, invoicing, and shipping for each supplier. Suppliers can earn steady profits with low capital investment and no risk.
- Improving data and insights. Marketplaces provide crucial data insights into market trends, customer preferences, and other important sales data. Brands can use these insights to drive assortment strategy, personalize customers’ experiences, and boost their bottom line.
About SFP
SFP, an operator of customized, branded B2B marketplaces for many of the largest grocery distributors in the country. For more information, please visit https://specialtyfoodpartners.com.
Contact: Adrienne Walkowiak, [email protected], 603/659-9345