Infographic: Build a Better Marketplace with More Payment Options
January 19, 2023
B2B marketplaces have grown significantly over the past few years, driven by several factors, including the increasing digitization of commerce, the rise of e-commerce, and the growing need for businesses to streamline their procurement processes.
One major trend has been the growing adoption of B2B e-commerce, as more and more businesses are turning to online marketplaces to find new suppliers and customers. The online B2B market has been growing faster than the B2C market, and it is expected to grow faster in the coming years.
Another trend is the emergence of industry-specific B2B marketplaces, which are tailored to the needs of specific industries and niches. This allows businesses to find the products and services they need quickly and can also increase suppliers’ visibility in these niches.
Additionally, B2B marketplaces have been leveraging technology such as artificial intelligence and machine learning to improve the experience for both buyers and sellers. This includes features such as personalized search results and product recommendations, which can help businesses find the products and services they need more quickly.
To continue their growth, B2B marketplaces should create a more B2C-like checkout experience; one way to do this is by offering payment options, such as trade credit or payment on terms. One significant benefit is that offering payment on terms can increase the number of potential buyers on the marketplace. This is because some businesses may need more cash on hand to make an immediate payment, but they can still participate in the marketplace if they have the option to pay on terms.
Another benefit is that offering payment on terms can help to increase the total value of transactions on the marketplace. This is because businesses may be more likely to make larger purchases if they have the option to pay over time rather than having to pay upfront.
Additionally, offering payment on terms can also help improve sellers’ cash flow. This is because they can receive payment over time rather than having to wait for an upfront payment, which can help them to manage their own cash flow more effectively.
Moreover, B2B marketplaces can also leverage the B2B payment options to offer their sellers financing options, allowing them to expand their product offerings and increase their sales.