B2B e-commerce

B2B e-commerce, short for business-to-business electronic commerce, refers to the sale of goods or services between businesses through an online sales platform. It helps improve the efficiency and effectiveness of a company’s sales operations. Instead of handling orders manually through sales representatives, telephone, or e-mail, companies now process orders digitally, which helps reduce administrative and operational costs.^[1]

B2B characteristics

Manufacturing companies obtain components or raw materials from other companies and then sell to a wholesaler, distributor, or retail customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles.^[2]

Market development and trends

The B2B e-commerce market is growing rapidly. In 2014, 63% of industrial supplies buyers made their purchases online. The US market was projected to grow from $780 billion in 2015 to $1.1 trillion by 2020,^[3] but recent data suggests that it is even larger. In 2022, just over 10% of B2B product sales, totaling $1.676 trillion, were made through e-commerce websites. This growth trend is expected to continue strongly until at least 2026.^[4] The European Union Enterprise policy aims to "enhance trust and confidence" in B2B electronic markets.^[5]

In the US, B2B e-commerce is expected to reach $1.8 trillion by 2023.^[6] This growth is being driven by a number of factors, including the increasing adoption of cloud computing, the growth of mobile commerce, and the rising demand for end-to-end supply chain solutions.

See also

• E-commerce
• Types of e-commerce
• Online marketplace