Unit 8.4

B2B E-commerce Marketplaces: The Selling Side of B2B

IT 204: E-Commerce

Learning Objectives

By the end of this chapter, you will be able to:

✅ Define B2B e-commerce marketplaces and their value proposition.
✅ Differentiate between the four main types: E-distributors, E-procurement, Exchanges, and Industry Consortia.
✅ Analyze the features and benefits of each marketplace model.
✅ Identify key B2B e-commerce players in the Nepalese context.

What is a B2B Marketplace?

Definition: An online platform where businesses buy and sell goods, services, and information from other businesses.

They act as digital intermediaries, creating efficiencies for both buyers and sellers.

⚡ Reach a wider, global audience of business customers.
⚡ Discover new suppliers and partners.
⚡ Automate and streamline transactions.

Four Major Types of B2B Marketplaces 📊

B2B marketplaces can be categorized based on who owns them and how they serve the market. We will explore four key models.

1. E-distributors

Single-company owned, seller-focused.

2. E-procurement

Company-owned, buyer-focused.

3. Exchanges

Independent, market-focused (neutral).

4. Industry Consortia

Industry-owned, vertical market-focused.

Type 1: E-distributors

Concept: Online marketplaces owned and operated by a single company to sell its own products and services. Often an online extension of an existing business.

Key Characteristics

One-to-many model (one seller to many buyers).
Seller has complete control over branding, pricing, and fulfillment.
Focuses on providing a comprehensive catalog for a specific industry.

Example: Grainger.com

A massive US-based industrial supplier. Their website acts as a one-stop-shop for businesses to buy maintenance, repair, and operating (MRO) supplies directly from Grainger.

Type 2: E-procurement

Concept: Marketplaces that automate the procurement (purchasing) process, typically used by large businesses to buy from a variety of approved suppliers.

Core Purpose 🎯

Many-to-one model (many suppliers to one buyer).
Focus on reducing costs and improving efficiency for the buyer.
Enables spend tracking and compliance with purchasing policies.

Buyer-Centric Model

Imagine a large university creating a private portal. Pre-approved suppliers (for office supplies, lab equipment, etc.) list their products, and all university departments must purchase through this system for better rates and control.

Type 3: Exchanges

Concept: Independent, third-party online marketplaces where many buyers and sellers trade goods and services, often commodities.

Key Features

Many-to-many model, creating a neutral and dynamic market.
Prices are set by supply and demand (bids and asks).
Ideal for standardized products like steel, energy, or chemicals.

Analogy: Stock Exchange for Goods

Just as traders buy and sell stocks, businesses use exchanges to buy and sell physical commodities at the current market price, ensuring transparency and competitive pricing.

Type 4: Industry Consortia

Concept: Industry-owned vertical marketplaces that serve the specific needs of a single industry, founded by a group of leading companies in that sector.

Who Runs Them?

A collaboration of major industry players.
Open to all businesses within that specific vertical (e.g., automotive, aerospace).
Goal: Standardize processes and create a more efficient supply chain for the entire industry.

Classic Example: Covisint

Founded by major automakers (GM, Ford) to create a central marketplace for buying auto parts from thousands of suppliers. It unified complex supply chain interactions for the automotive industry.

🔍 Case Study: B2B Marketplaces in Nepal

While still in early stages, Nepal's B2B e-commerce scene is growing with platforms tailored to local business needs.

Aayo

Connects manufacturers and wholesalers with retailers. A classic marketplace model for fast-moving consumer goods (FMCG), office supplies, and more.

Nepal Tenders

A specialized information portal that aggregates government and private sector tenders. It functions as an e-procurement hub for businesses seeking contracts.

Foodmandu (B2B)

A prime example of a B2C company expanding into B2B. They leverage their existing logistics network to offer corporate catering and food supply services to other businesses.

Key Takeaways

B2B marketplaces are digital platforms that streamline commercial transactions between businesses, offering efficiency and wider reach.
The four main models—E-distributor, E-procurement, Exchange, and Consortia—are defined by who owns them and who they primarily serve.
The choice of marketplace depends on business goals: control (E-distributor), cost savings (E-procurement), or optimal market pricing (Exchange).
The B2B landscape in Nepal is evolving, with platforms emerging to solve specific local challenges in distribution, procurement, and services.

Thank You!

Any Questions?

Next Up: Unit 9 - B2B Marketing & Social Media

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