The B2B e-commerce market worth will continue to grow to $6.7 trillion, according to a recent article on Forbes, which reports new findings by research firm Frost & Sullivan. These current predictions are largely to do with the success of Alibaba, which is the most popular e-commerce website in China. Alibaba currently has a gross merchandise value of just over $27 billion, which only represents 11% of its total value.
Alibaba had the highest IPO in world history, and its group of online e-commerce sites had transactions totaling $248 billion last year, more than Amazon and eBay combined, according to the Wall Street Journal. They also just sold $1.8 billion worth of goods online in one hour due to their created shopping holiday on November 11 this year, according to Quartz.
Why is Alibaba so important to B2B e-commerce?
While the above facts are impress, Frost & Sullivan (as well as the Forbes column author) brought up Alibaba because of their significant impact on one of the biggest markets in the world: China and Asia. Their IPO made them not only more accessible but also more visible to the rest of the world, only increasing their income. And because they are starting to increase their efforts in the B2B market, their financial impact could be extensive in the next six years (and beyond).
The Future of B2B
The Forbes article also points out that the B2B online marketplace is starting to shift. While currently dominated by industry-sponsored marketplaces, it may slowly move to a more personalized and individualized approach, with single organizations offering their products and services in a more cloud-sourced environment, full of multiple organizations (and overhead sponsorship from none).
This focus on providing a more singular user experience is also touched on by e-commerce solution agency Echidna, who also states that internal processes will continue to be more streamlined for B2B e-commerce sales, leading to larger and more common transactions.