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Future of B2B Online Retailing : The Global B2B eCommerce Market Will Reach $6.7 Trillion by 2020

  • December 2014
  • 74 pages
  • Frost & Sullivan
Report ID: 2604039


Table of Contents

Key Findings of the Study

The global online business-to-business (B2B) market is expected to reach $ x trillion by 2020, twice the estimated B2C market potential ($ x trillion).
China is expected to emerge as the largest online B2B market, with an estimated potential of $ x trillion by 2020, closely followed by the United States, with an estimated online B2B market value of $ x trillion.
The manufacturing sector is emerging as an important contributor to B2B transaction volume in the United States and the United Kingdom. Over x % of the total B2B transactions in these two regions were generated by manufacturing industries in the top x sectors transacting online: automotive, pharmaceutical, and logistics.
Rapid proliferation of connected devices and connectivity is the main driver transforming traditional business practices. Government surveys on national business activities reveal that x % of small businesses and x % of medium-sized businesses had Web capability in 2012 (based on UK and EU data only).
Driven by the Mega Trend of Connectivity and Convergence, the use of mobile channels is finding rapid traction in the B2B operations of large businesses. Established B2B networks have revealed nearly 90% increase in visits from mobile devices from 2012 to 2013.
The best implementation cases of B2B show an average of x % increase in the order value of goods and a x % reduction of operational costs in the procurement activities of businesses (over a gestation gap of one year from implementation).
The B2B marketplace is dominated by industry-sponsored marketplaces and consortia-led exchanges thriving on low-cost Internet platforms and harnessing the value proposition of collective bargaining/selling. In recent years, businesses have started their own independent B2B markets focusing on migrating specific services such as aftermarket, support or lead generation to online platforms.
Businesses are buying more than selling online. While x – % of businesses look to online platforms for buying goods, less than x % have adopted them to sell their own products (based on UK and EU data only). This implies a need for more seller-driven B2C-type open public networks such as Alibaba and Amazon, which can provide more visibility and storefront capabilities to sellers.
The future of B2B online retailing is expected to become more congregational, with social media making inroads into online retailing with its undisputed reach and multiplier effect. Close to x % of businesses in the United Kingdom use social media actively in selling and purchasing goods online.
B2B eCommerce platforms, in addition to reducing operational costs, are also proving to be a new, additional source of revenue for large manufacturers. Most manufacturers are charging a premium for exclusive membership to their private consortiums and platforms. Through such models, companies are able to generate close to x % as revenue from each B2B transaction gross merchandize value (GMV).

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