Why are sales in the b2b segment actively developing on marketplaces? What opportunities do electronic trading platforms offer for legal entities as buyers? What are the advantages of wholesale supplies through a marketplace?
The pandemic has greatly changed the entire structure of retail sales channels. And in addition to the traditional channel of wholesale supplies, part of the flow of goods has been taken over by marketplaces, which are actively developing the b2b direction.
A familiar partner
Disruptions to deliveries from abroad, frustrated delivery dates, the closure of entire businesses - because of the pandemic, small wholesale companies are no longer 100% cope with the demands of business. Therefore, entrepreneurs had to look for an alternative to this previously available purchasing channel. In circumstances where a particular product or equipment is needed to continue a business, the entrepreneur often chooses the most affordable and easiest way to order, even if the price turns out to be slightly higher.
Most entrepreneurs have already worked with marketplaces, ordering appliances, supplies, office equipment and more. As a result, small and medium-sized businesses have begun ordering other goods through marketplaces as well, from food to medical supplies.
Gradually, business began to increase the rate of purchases on marketplaces, because electronic trading platforms offered a new level of service in the b2b segment.
In addition, the marketplaces themselves demonstrate a desire to provide a more comfortable working environment for entrepreneurs. Let us highlight a few big changes on marketplaces for business that occurred during 2020.
1. Reduced application processing time
Simultaneously with the expansion of opportunities for buyers - legal entities, marketplaces provide active support to suppliers. Over the past year, the processes for entering electronic trading platforms have been greatly simplified. Leading players have reduced the time for consideration of bids, and most processes have become fully digital. For example, a year ago it took three weeks to enter Wildberries, in 2020 this time has already been reduced to a few days. As a result, it has become much easier for wholesale companies to test work on the marketplace and try new niches.
2. Suppliers no longer have to deliver goods to the Marketplace warehouse.
In order to begin cooperation with large marketplaces before the pandemic, you first had to bring goods to the marketplace warehouse. Faced with a multiply growing flow of orders, the leading electronic marketplaces allowed them to sell goods from the supplier's own warehouse as well. Since the fall of 2020, this practice has been available to vendors at Wildberries in pilot mode, and at Amazon it has been possible to send orders to clients from their own warehouse for more than a year. At the same time as diversifying their own logistics, the marketplaces have thus created an opportunity to test new niches and areas without significant expenses.
3. Advanced analytics help increase turnover.
New analytical tools have also recently been unveiled to help vendors plan their operations. For example, vendors working for Ozon can now take advantage of analytics based on Power BI (Power Business Intelligence), tracking user search query statistics for various categories right online. Access to this function is open to all comers.
4. Special offers and support
Creating additional incentives for supplying through their marketplaces, marketplaces began offering sellers various bonuses, including new promotion opportunities. Some marketplaces even organize contests in which they give out cash prizes to entrepreneurs, such as those with the most interesting business stories.
5. New funding opportunities
Most marketplaces have taken care not only to expand services for legal entities, but also to financially support suppliers. For example, in the personal cabinet a seller can leave an application for a loan, choosing one of the financial organizations verified by the sites.
Thanks to preliminary work on the digitalization of the scoring process, financing through the marketplace does not require the collection of documents, takes place against a dynamic pledge of goods in turnover, or no pledge at all, and takes into account the trading statistics on the site.
Over the past year, easy credit lines have been rapidly gaining popularity among suppliers. In particular, according to our observations, successful companies often apply for another loan without waiting for the previous one to be repaid if they manage to find a new niche and expand their business.
B2b is changing marketplaces
In 2020, major digital marketplaces have introduced new business products that have never been sold there before. In our practice, we have encountered a wide variety of representatives of the b2b segment who are seeking not only to enter the marketplace, but also to expand their business opportunities. For example, since last year, lamps for drying gel manicures and the widest range of gel polishes themselves have appeared en masse on marketplaces. These goods are primarily aimed at manicurists and salons, who now prefer to buy everything they need to work on the marketplace - in a convenient format, with delivery to the salon and without unnecessary complications.
Another example from practice: our client was only dealing with professional hair combs, but successful access to the marketplace helped the entrepreneur to expand his assortment by offering additional goods for hairdressers. Interestingly, they turned out to be in demand among ordinary customers as well.
In general, access to a wide audience of consumers was an added bonus for wholesale suppliers. By placing goods on the same site, many manufacturers, importers and distributors began to develop their own b2c business, gradually turning into wholesale and retail companies.
Even now it is possible to buy professional coffee machines and beans in large quantities, spare parts for car repair shops, medical goods, special beauty and health products and so on through online marketplaces. Suppliers who gain a foothold on the marketplace usually begin to expand their assortment, looking for additional niches. In such conditions, the constantly improving working conditions and active development of services for business on marketplaces have already made electronic trading platforms a new channel for wholesale sales.