B2B E-Commerce Industry to Reach $6.7 Trillion by 2020
A new report from Frost & Sullivan has predicted that the global B2B e-commerce industry will reach $6.7 trillion in 2020.The expected leaders are the U.S. and China, with the U.S. expected to double its contribution to the B2B e-commerce revenue pie in the next five years (to $1.2 billion).
The study outlined that the path toward almost $7 trillion won’t be easy, especially for the retail market. Some of the struggles the report outlines for B2B retailers include:
- B2B prices are usually variable, with high order volumes
- Shipping options may require more logistics, depending on the product
- Tax and industry regulatory issues can sometimes plague B2B companies
- Large staff, who must be educated in the above areas in order to conduce proper sales and business practices
While these potential problems may occur for B2B e-commerce retailers, Frost & Sullivan still recommends that B2B companies begin focusing more on their e-commerce strategy, if they haven’t already. According to Frost & Sullivan Visionary Innovation Group Consultant Pramod Dibble:
“Nonetheless, with technological advancements facilitating the procurement of goods on the move through smartphones and tablets, business use of online platforms will rapidly grow…The emergence of cloud platforms that offer more scalability, both as a software and infrastructure service, too is pushing businesses towards B2B online retailing.”
B2B marketers will likely follow Frost & Sullivan’s advice as they attempt to capitalize on the rapidly-expanding market.
Note: Some of the insights from the cited report have been gathered from a PRNewswire release.
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