Advantages And Disadvantages of B2B Platforms

B2B platforms are an indispensable tool for optimizing and automating interactions between businesses. The essence of B2B platforms is to create integrated ecosystems that allow businesses to effectively exchange data, goods, and services, establish partnerships, and improve operational efficiency.

The development of B2B e-commerce platforms opens up new horizons for growth and innovation. Such platforms not only simplify procurement and sales processes for businesses, but also help improve customer service, expand sales channels, reduce costs, and speed up time to market.

What Is a B2B Platform?

A B2B platform is an online store for business. For example, an ordinary user goes to the marketplace, enters the query “baby strollers” and sees hundreds of products from different manufacturers. In the same way, a company logs onto the platform, searches for “forklift” and selects suppliers with whom it can cooperate. On regular marketplaces, a store sells goods at retail to individuals, and on B2B platforms, a business sells goods wholesale to another company. Moreover, on such platforms, a buyer can place a request for a specific product, so sellers can search for buyers themselves and offer their services.

Advantages And Disadvantages of B2B Platforms

For buyers, the B2B platform offers the convenience of making purchases just like a regular online store. Sellers can save on management costs and boost sales using this tool. The main advantages of B2B platforms include:

• On B2B platforms there is always a large selection of offers, just like on a marketplace. Moreover, a business can choose between sellers and buyers.
• A business can contact the seller, complete the transaction, and sign documents online.
• A business can clearly compare prices and conditions.
• The platform guarantees the reliability of sellers and buyers, monitors their interaction, and can help resolve a dispute, if necessary.
• A business doesn't have to work with just one supplier or customer. If a business needs a product urgently, it can quickly purchase from a competitor.
• Terms of purchase, price, delivery times - all this is indicated in the product card. There is no need to call and discuss terms with each individual supplier. The seller immediately sees the brief in the buyer’s application.
• Sellers do not need to waste time on cold calls; buyers come on their own or place a request for a product, which means they are already ready to buy it.
• Registration is fast and free, just like on the marketplace. A business only needs to provide a phone number or email, no additional documents are needed.

The only drawback of B2B platforms is the prices. The seller pays a commission for listing on the platform or for the transaction, so the commission is often included in the price of the item.

Types of B2B Platforms

Typically, B2B platforms are independent platforms that operate like a marketplace. The most famous such platform is Alibaba.com. This platform presents any categories of goods: from food and clothing to professional equipment; payment for transactions is carried out through the platform, suppliers willingly agree to send test samples, and the service also provides a guarantee and the possibility of a return if the product does not correspond to what was declared.

Some platforms are owned by a specific business. Such marketplaces also work like online stores, but the owner receives a percentage from transactions or placement of goods. Creating your own platform can become a separate direction of development and a source of income for a business.

If you decide to create your own B2B platform, then it is important to understand that it can be located on the cloud or on a server. Maintenance of cloud platforms is simpler, and it is taken over by the cloud service. Such platforms are easier to change and adapt to your needs, built according to the principle of a designer. But at the same time, user data is stored on the cloud, and this is unsafe.

Developing B2B e-commerce on your own server is also possible. This will cost more: you will have to hire specialists and do development. Making changes will be more difficult and take longer. However the platform can be customized as much as possible to suit your needs, and the data will be stored on the server. This will ensure the security of transactions and can be a decisive argument for customers.

The platform can be developed from scratch, or you can take a ready-made template or use a builder with customization options. The choice depends on your goals and capabilities. Individual development always costs more and requires more time and personnel, but provides more opportunities.

What Do Users of The B2B Platform Get?

The B2B platform is equally convenient and beneficial for both the customer and the seller. Let's figure out what each of them gets thanks to this tool.

What the customer receives:

• Large selection of goods and services in catalog format with product cards;
• Fast and convenient ordering, just like on the marketplace;
• Platform guarantee;
• The order can be made even at night or on weekends;
• Convenient comparison of suppliers;
• Saving order history;
• Automatic notifications about the shipment of goods;
• Integration with accounting services.

What the seller gets:

• Searching for warm customers without calling or collecting a database: the seller can simply look at applications on the platform and contact the customer;
• Advanced marketing capabilities: advertising on the platform, quick upsells;
• Placing an order without the participation of a manager;
• The ability to monitor competitors’ offers and differentiate from them;
• Increasing customer loyalty by improving service: applications are processed automatically, and the customer places an order through the platform;
• Easy scaling: higher sales volume without new offices and additional employees;
• Integration with accounting services.