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MARKET POTENTAIL FOR B2B E-COMMERCE MARKET

 Global business-to-business (B2B) eCommerce sales are predicted to reach over


$6.6 trillion by 2020, surpassing business-to-consumer (B2C) valued at $3.2
trillion by 2020.

 Growing at a Compound annual growth rate (CAGR) of 10% .

 The United States (US) alone will generate over $1.9 trillion in sales by 2020. With
this rise in B2B eCommerce and the digital commerce world, B2B is predicted to
become more like B2C.

 The major reason for the growth of Ecommerce and especially B2B is because of
the improved penetration of internet.

 India's internet users expected to register double-digit growth to reach 627


million in 2019.
Percentage of Internet users in USA 87.9%
Percentage of Internet users in the Middle East 67.2%
Percentage of Internet users in Europe 85%

US Market
 US consumers will spend $586.92 billion on ecommerce in 2019, representing an
increase of 14.0% vs. 2018 and 10.7% of total US retail spending.
 It has 282.1
.1 million active internet users & 87.9% internet penetration.
penetration It has
209.6 million – Population shopping online and 27% proportion of shopping
online from both domestic and abroad
abroad(Kulach, n.d.). The United States (US) alone
will generate over $1.9 trillion in sales by that time. With this rise in B2B
eCommerce and the digital commerce world, B2B is predicted to become more
like B2C.
 This accounts for more than 13% of all B2B sales within the United States (up
from the $889 billion in sales by the end of last year).
 In 2015, Google found that close to half of B2B buyers are millennials, nearly
double the number from 2012.

Indian Market
 The Indian e-commerce
commerce market is expected to grow to US$ 200 billion by 2026
from US$ 38.5 billion as of 2017.Online retail sales in India are expected to grow
by 31 per cent to touch US$ 32.70 billion in 2018, led by Flipkart, Amazon India
and Paytm Mall.In India, B2B marketing companies are booming. According to
studies Indian B2B is right now worth $300 billion, which will grow to $700 billion
by 2020.Wal-Mart has already made its foray into the B2B ecommerce market by
launching their portal: BestPriceWholesale.co.in . Currently it is serving the
customers of Hyderabad and Lucknow, but later on it will expand to other Indian
cities as well.
Middle East and Northern Africa
The Middle East e-commerce market is set to double to more than $69bn by
2020, a recent report by online regional payment platform PayFort said. The
UAE’s $27 billion e-commerce market and the Kingdom of Saudi Arabia’s $22
billion market will be the two largest markets dominating the region by 2020,
PayFort’s 2016 State of Payments report found. Internet penetration Middle East
67.2%. Internet penetration in Middle East is 67.2%.(Arabian Business, 2019).
51.4-Billion-dollar worth of Gross Merchandize Value (GMV) Sold in 2017 from
the e-commerce marketplaces.0.12% E-commerce contribution to the GDP of the
middle east nations is miniscule which clearly has huge growth potential. Fashion,
Electronics & Media, Food & Personal Care, Furniture & Appliances & Toys,
Hobby & DIY verticals are poised to gain most from expanding e-commerce
market. Amp. 67.2% of the consumers from the MENA (Middle East and North
Africa) use internet to search products and 33% make online purchases.
European market
Revenue in the eCommerce market amounts to US$346,155m in 2019.
Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 8.5%,
resulting in a market volume of US$479,131m by 2023.
The market's largest segment is Fashion with a market volume of US$100,128m
in 2019.
User penetration is 85% in 2019 and is expected to hit 76.1% by 2023.
The average revenue per user (ARPU) currently amounts to US$582.43.
Key emerging trends
1. Geo-Tagging

2. Analytics

3. Incorporation of Machine Learning

4. Virtual Reality

5. AI-powered personalization

6. Localization
WHAT ARE I.T. COMPANIES DOING IN B2B?

Contract
Based
Catalogue
Search Engine
Optimization

Inventory
Management

Customer
segmentation
for merchants
Omni-Channel
Support

Merchandising
support
OPPORTUNITIES E-COMMERCE
COMMERCE SOLUTION PROVIDERS HAVE IN B2B
ECOMMERCE

Increasing reach and usage of Internet

Growing rural market

Exchange of goods and services between countries

Multiple suppliers available

Increasing demand for foreign products

ENTRY STRATEGY FOR IKSULA TO ENTER THE B2B EE-COMMERCE


COMMERCE SEGMENT

1. PRODUCT
CT DESCRIPTION IN FORM OF VIDEO
Majorly in India the B2B market is highly unorganized. The suppliers may not
know how to operate a mobile application. Iksula can upload a small video of 30
seconds which gives the description about the product. This would be an
engaging for suppliers and may make it user friendly for them .

2. BIDDING SYSTEM FOR


R NEGOTIATION
Negotiation plays a very important role in B2B business. The prices are
negotiated based on volume, quality and relationship with the supplier. The
company can create an online bidding system for negotiating the price. Eg: A
buyer looks for a product online. He will enter the order details like quantity,
quantity
location etc. Immediately an alert is sent to all the vendors who supply that
product.Then suppliers can start bidding on the order. Whichever deal is most
attractive for the buyer they can choose it.

3. CREDIT MANAGEMENT SYSTEM


B2B trading happens on credit basis. Iksula can have a seamless credit
management system, which will take care of accounts of both buyer and supplier,
and manage their entire transactions. The company can record all details
regarding the transaction and provide timely reminder regarding repayment of
credit to both buyer and supplier. They can provide some insurance facility in
case of delay in the payment or non compliance of the contract.

4. ONE CLICK CONTRACT MANAGEMENT


Iksula can manage the entire contract between the buyer and the seller by
creating an one click contract immediately as the buyer decides to place order.
This contract may include basic details as to when the goods has to be delivered,
credit time period, etc. There can be additional terms and conditions that can be
added to the contract.

Apart from these, they can involve in many other aspect of B2B business like:
1. On boarding Vendors into the site
2. Managing the website
3. Reviews and queries
4. One Click reorder
5. Personalized catalogue for vendors