How to Build a B2B Marketplace - The Complete Guide

12/20/2021 5:56 PM

Today, we live in a world where everything is digitalized, and online shopping or e-commerce is much easier than before. Also, the idea of a marketplace is no longer that of an open space for businesses and businessmen, but an e-commerce platform where multiple businesses provide their product or service information. Forecasts state that B2B sales will crack $1.2 trillion by the end of 2021. So, if you are wondering when to launch your marketplace, now is the time. You can skip all the confusion if you are at the right place to build your B2B marketplace.

What is a B2B Marketplace Platform?

Before you start, have a clear understanding of a B2B marketplace. A B2B marketplace is a website where businesses may sell their goods and services to other businesses. Unlike B2C websites, these platforms are directed at businesses and not directly at the end consumers. Hence, the term "business-to-business marketplace."

Learn more: How are B2B Websites Different from B2C Websites

How to Build Your B2B Marketplace?

If you are confused about building your B2B marketplace, we can help you. Have a goal. Your primary goal before building a marketplace should be to win customers' trust, protect intellectual property, secure data, and promise an enhanced user experience. After setting the goal, work on the following:

Look for a Problem to Fix

You need to identify an issue your marketplace will address and ensure that the problem is big enough to attract many firms. You can conduct market research to have an understanding of the present market position as well as potential business prospects.

Consider How You'll Run Your Business

Make a canvas for your business model that comprises nine sections. It should contain information about customers, activities, revenue streams, distribution, and other topics.

Increase Supply and Demand

Choose whether your market will have a homogeneous or heterogeneous supply. Homogeneous markets, also known as matching marketplaces, offer products or services that are very comparable in terms of features and pricing. Heterogeneous marketplaces or search marketplaces have many more possibilities, making it difficult for the customers to make decisions.

Ensure Liquidity

Liquidity is a marketplace measure that tells you whether your marketplace's suppliers and buyers can get what they need. Monitor density, demand-supply ratio, and category concentration to assure liquidity.

Obtain a Level of Defensibility

A marketplace's defensibility is a feature that defines its feasibility and compatibility with the market. Look for the network effect, branding, and user-friendliness since these impact a marketplace's defensibility.

Some of the challenges you may face include marketing and attracting the first consumers, complex transactions, and building trust. To avoid them, include the following aspects in your marketplace:

Onboarding and registration
Profiles of buyers and sellers
Listings of products
Filters for searching
Comparison of products
Personal endorsements
Options for payment
Discounts and pricing
Options for shipping
Reviews and ratings
Integrations with third parties
Admin control panel

Once the analysis is complete, estimate the development cost, and write down requirements and specifications. Then, start building your B2B website and promote it. If you are thinking of starting it from scratch, we can help you again.

Learn more: How to Build an e-Commerce Website from Scratch

A B2B marketplace necessitates extensive planning, advanced development, and product design abilities. Although the B2B market is far from saturated, it has incredibly high-quality standards, especially if you want to create a B2B marketplace with a tight focus that businesses will choose.