The consumer shift to online shopping has been a fact of commerce for nearly a decade now: e-commerce sales rose from $1.3 trillion in 2014 to just under $4.3 trillion in 2020, with a forecast close to $6.4 trillion in 2024. Despite the ongoing digitization in the enterprise world, B2B (business-to-business) transactions have been slower in transitioning online, but the trend is clearly observable and only expected to accelerate after the global coronavirus pandemic. “Against this background, B2B marketplaces are emerging as the next big driver of e-commerce,” comments Paul J. Bailo, president of US-based fashion wholesale platform OrangeShine. “Given the numerous advantages these marketplaces offer to both buyers and sellers, they are poised to play a key role in global e-commerce, fueling its growth and supporting the world’s economy in the process.”
As Paul J. Bailo points out, there are tremendous opportunities for wholesalers in today’s globalized business environment. According to a recent report by Research and Markets, B2B e-commerce sales worldwide are expected to grow at a compound annual rate of 17.5% between 2020 and 2027, reaching $20.9 trillion by the end of the forecast period. “While digitization is opening new doors for brands, doing business globally is associated with various complexities, especially for wholesalers,” Paul J. Bailo explains. “In addition to logistic, currency, and language issues, buyers and sellers engaged in cross-border trade have to contend with a variety of country-specific regulations and requirements. For these reasons, B2B marketplaces have become an essential part of e-commerce, enabling manufacturers and retailers to overcome trade barriers and complexities and expand far beyond their home markets.”
Read More: i2c Becomes First Company to be a Visa Fintech Fast Track Member in Four Regions
A key factor behind the rising popularity of B2B marketplaces is the need to operate efficiently in a digital-centric environment while also reaching customers around the globe. According to Paul J. Bailo, the greatest contribution to global e-commerce will be made by wholesale platforms that serve a specific niche or market vertical. By offering business buyers and sellers a highly specialized platform, such B2B marketplaces not only allow their users to transact with ease and efficiency but also promote the establishment of mutually beneficial partnerships between manufacturers and retailers. They are a particularly valuable option for small and medium-sized enterprises, whose limited resources make it hard to maintain an e-commerce portal and do business globally. As an alternative that also promises reduced marketing expenses, improved supplier and customer management, and greater sales engagement, B2B marketplaces are increasingly strengthening their position in global e-commerce, Paul J. Bailo concludes.
Read More: Bakkt Expands Reach of the Digital Wallet Experience to Send Digital Assets to Anyone
Based in Los Angeles, CA, OrangeShine is a global online B2B marketplace that specializes in connecting manufacturers and retailers in the fashion industry. Since its start in 2009, the platform’s mission has been to provide users with a full suite of customer-centric services and a vast array of product lines. Dedicated to helping wholesale vendors maximize their sales and expand their business through attracting new customers, OrangeShine offers fashion buyers and sellers a one-stop shop for their e-commerce needs while also enabling them to reduce costs and operational inefficiencies.
Read More: Daily Fintech Series Roundup: Top Fintech News, Analytics and Insights
