Find out why selling in an online B2B marketplace may not be the best B2B eCommerce strategy for your business, and the alternative model you can implement.
Marketplace and Quality Assurance Presentation - Vincent Chirchir
B2B Marketplace: Downsides of B2B Online Marketplaces
1. Post Link: The Downsides of Selling in a B2B Marketplace
The Downsides of Selling in a B2B Marketplace
As more B2B buyers move online to make their purchases, B2B eCommerce is becoming a top
priority for manufacturers and distributors across a wide variety of industries. Companies are
taking different approaches to their online selling strategies, however. Some, for instance, are
choosing to sell via online B2B marketplaces, where suppliers can put their products up for sale
alongside other manufacturers and brands in order to make their product lines more
“discoverable” to a wider audience.
There are definitely downsides to this B2B marketplace approach, however. Let’s take a closer
look at what it means to sell via a B2B marketplace, and whether it’s a good option for your
business.
A Competitive Environment
As mentioned earlier in this post, many manufacturers and distributors are attracted to the idea
of a B2B marketplace because of the visibility it might offer their brand. By selling on an
established marketplace, where buyers are already going to look for other products, brands
hope to capture new customers.
However, this can be a difficult environment, especially for smaller brands. With your products
stacked up right next to your competitors’ offerings, it ends up being a game of either brand
recognition (who has the more recognizable logo and name?) and price (which product can I