B2B marketplaces are websites and online services where companies sell goods and services to other companies.
For example, coffee shops can buy coffee and equipment for making drinks on such marketplaces, stores can buy goods for resale, and manufacturers of household chemicals can sell their products to stores or distributors.
A B2B marketplace collects goods and services on one offer showcase and also acts as an intermediary: it attracts traffic, helps process payments, organizes delivery, and ensures the security of transactions between companies.
It is more convenient to use marketplaces than to search for suppliers and partners “manually”. Here are the main reasons why businesses have begun to actively use purchases on B2B marketplaces instead of regular purchases:
Speed of transaction. Let’s say a client needs to buy ten printers and twenty tables for the office. According to the “old scheme”, he needs to find suppliers’ websites on the Internet, call them, find out current prices and delivery times, prepare a contract, and agree on delivery terms. This process alone can take a week or even several weeks. On the marketplace, you can compare prices of goods from different sellers and make a purchase in a few minutes – within one browser tab.
Benefit. B2B marketplaces often hold promotions to stimulate demand. For example, they offer discounts on seasonal goods, reduce prices depending on the volume of purchases, or deliver orders to pick-up points for free.
The platform can also help arrange a tax deduction: when purchasing on B2B marketplaces, clients working on the general taxation system can get back VAT up to 20%.
Automated document flow. During the purchase, all necessary documents are generated and filled in automatically based on the data that the user provides during registration.
Typically, B2B marketplaces help clients either set up electronic document flow (EDF) or automate the paper exchange of documents. In the first case, a set of closing documents is generated and sent through the EDF provider – at the moment when the goods are transferred from the warehouse for delivery.
If EDI is not connected, the electronic consignment note appears in your personal account after receiving the order and signing the document, and the invoice appears at the time of shipment of the goods. The marketplace sends the original documents by mail. Some B2B marketplaces also have a function for those who have not found the desired product in the catalog. You can leave a request to the seller – write that you could not find it. The seller will try to add such products to their assortment and then contact the buyer.