| Considering their features and capabilities B2B | | | | shorter sales cycle. |
| marketplaces are still quite underused. However, the | | | | 4. Sales solution expedites selling process and reduces |
| trend is changing and many companies started to | | | | overhead costs |
| realize the immense potential these promising online | | | | The sales chain integrated into a B2B marketplace |
| channels store. Now the common view considering | | | | covers every stage of selling process including |
| adoption of a marketplace as a sales or purchase | | | | quotation, negotiation, billing and shipment tracking. |
| channel will change the way a company handles its | | | | Electronic sales process considerably reduces sale's |
| sales and procurement bringing improved productivity | | | | cycle enabling lower processing costs. Electronic sales |
| and sustained profitability to its bottom line. | | | | solution also helps minimizing document errors often |
| What is a B2B marketplace? | | | | associated with paper based systems. |
| Business to business marketplace is an online venue | | | | 5. eProcurement solution makes buying easier |
| where buyers and sellers come to communicate, | | | | Electronic procurement is the method of conducting |
| collaborate and do business transactions. A B2B | | | | transactions between buyers and suppliers over the |
| marketplace handles a large number of participant | | | | Internet. An eProcurement system is an integral part |
| companies as a community. The main objective of a | | | | of a B2B marketplace. Procurement through a B2B |
| marketplace is to organize a business platform filled | | | | marketplace has many undisputed advantages. |
| with features that allow members to conduct various | | | | Transaction costs get reduced thanks to streamlined |
| business processes over the Internet and increase | | | | transaction process. It saves time and stops rogue |
| company productivity. | | | | spending by employees. |
| Two primary indicators of company productivity are | | | | Aberdeen Group estimates that automating |
| Increased Revenue and Cost Saving. Both of these | | | | procurement activities will save midsize companies $2 |
| two indicators will show improved result if a company | | | | million per year. And that's not to say anything of the |
| incorporates marketplace features in possible fields of | | | | cost savings resulting from better supply chain |
| its business operations. | | | | collaboration. |
| Let's check out some compelling reasons why | | | | 6. Web Store brings new opportunities to company's |
| companies should start using B2B marketplace | | | | retail business |
| without hesitation: | | | | While through the marketplace you can tap into the |
| 1. B2B marketplace is a large community of buyers | | | | wide range of B2B buyers, B2B marketplace feature |
| and sellers | | | | that allows participant companies to build their web |
| By becoming a member of a B2B marketplace | | | | store using the same eCatalog gives a magnificent |
| companies get instant access to thousands of | | | | opportunity to target a totally different market |
| prospective buyers and suppliers. An average B2B | | | | segment. This by itself is a unique opportunity as |
| marketplace has over 100 thousand members. This | | | | recent studies showed that an increased number of |
| gives an opportunity to expand business by finding | | | | small companies with less than 20 employees are |
| new customers and suppliers from this new | | | | making more than 25 percent of their sales online. |
| community. Working closely with the members of the | | | | There are other benefits that a company can recieve |
| new community companies get every chance to | | | | from participating in a B2B marketplace as well. |
| increase their businesses dramatically. | | | | For buyer participants a B2B marketplace offers: |
| 2. Real time marketplace allows buyers to take quick | | | | - Lower transaction costs - streamlined transaction |
| decision | | | | processing. |
| Buyers can study, compare and research a product | | | | - Access to new suppliers - B2B marketplace |
| offered on a marketplace without leaving it. This | | | | participation removes geographical barriers and |
| ability of a B2B marketplace to give key information | | | | provides access to new suppliers. |
| necessary to make a purchasing decision helps | | | | - Time savings - provides for faster approval, |
| buyers to take a faster buying decision. | | | | ordering processes and delivery tracking. |
| Study shows that a full 47 percent of the buyers | | | | For suppliers, it offers: |
| visit a site without having all the necessary | | | | - Reduced inventory costs - Clearer visibility and |
| information needed to purchase a product. Products | | | | forecasting ability allow companies considerably |
| offered on a marketplace are integrated with the | | | | reduce inventory keeping costs. |
| eCatalog and seller's Web Store. This helps to | | | | - Access to new buyers and markets - B2B |
| increase buyer conversion rate significantly. | | | | marketplace provides a new sales channel which |
| 3. Sophisticated eCatalog helps display comprehensive | | | | opens up many new opportunities for suppliers. |
| product features | | | | - Increased sales - with access to a wider market, |
| An eCatalog is an Online product content | | | | suppliers have the potential to increase revenue. |
| management solution with powerful user interface | | | | - Reduced overhead costs - Thanks to streamlined |
| which provides efficient navigation, searching and | | | | supply chain overhead costs can be reduced up to 30 |
| integration capabilities to organize and publish product | | | | percent. |
| information and enable real-time handling of business | | | | - Reduced order processing costs - The supply chain |
| processes related to buying and selling. | | | | solutions of a B2B exchange may allow sellers to |
| It stores product content in a single database and | | | | reduce order processing cost significantly. Studies |
| organizes product information under a predefined | | | | show that cost of processing a purchase order can |
| categorized hierarchy. It also has sophisticated search | | | | be reduced from US$ 70 down to US$ 6 only. |
| capabilities so that buyers can locate products easily. | | | | - Reduced sales and support costs - By automating |
| Studies show, in many cases, buyers are unable to | | | | sales and customer support processes companies can |
| take conclusive procurement decisions due to poor | | | | reduce over head costs around 25-30% easily. |
| content of the product resulting lost business | | | | B2B marketplaces are one-stop business solutions for |
| opportunity for companies. To avoid this all B2B | | | | many of the company's needs. Usually a marketplace |
| marketplaces adopt one kind or another advanced | | | | offers a huge range of features and functions. |
| eCatalog system which delivers a compelling value | | | | Participant companies can select required |
| proposition. As a result, companies can expect | | | | functionalities, use them effectively and reap all the |
| increased revenue, better customer satisfaction, and | | | | benefits mentioned above. |