The business-to-business (B2B) online retail market is on track to generate $6.7 trillion in revenues by 2020, double the size of the business-to-consumer (B2C) online market.
Analysis from research analyst firm Frost & Sullivan reveals that B2B online sales will account for close to 27% of total manufacturing trade, which is likely to hit $25 trillion by 2020.
China and the United States will lead the B2B online retailing market, with the latter anticipated to double its revenue contribution to $1.2 billion by 2020.
B2B online relationships are likely to move from a one-to-many to many-to-many business model, especially as marketplaces and cross-industry public platforms such as Alibaba and Amazon become more popular.
Frost & Sullivan sees an emerging model where one company invests and builds an e-platform for its suppliers. As such, the preference will be for a solution in which anybody integrates an e-procurement process and facilitates the purchase of goods online.
“As such, private industrial networks, where specific companies come together to exchange products, and public market places that are employed for on-the-spot purchasing, have gained prominence over the last decade,” said Frost & Sullivan Visionary Innovation Group Team Lead Archana Vidyasekar.
“With businesses buying more than selling online, these seller-driven B2C-type open public networks will help provide more visibility and storefront capabilities to sellers,” Vidyasekar added.