B2B Marketplace Payments Must Be Future-Proofed
As we move into 2022, online B2B transactions are becoming nearly indistinguishable from B2C shopping experiences, Long gone are the days of B2B marketplaces acting as “matchmaking” sites, followed by actual transactions happening offline. Today’s marketplaces are fully digital and powered by purpose-built B2B marketplace payments software. It’s no wonder analysts predict these sites will continue eating into more traditional B2B sales channels.
Given the recent pandemic, this shift is no surprise. Marketplaces have emerged as an accessible and valuable channel to add to a company’s mix of digital sales properties. Compared to many traditional B2B sales processes, these online buying destinations can offer a larger customer base and—with the right B2B marketplace payments software—a seamless purchasing process for both the buyer and the seller.
The State of Online B2B Marketplaces Today
By definition, marketplaces are simply digital spaces where a buyer connects with sellers to purchase products—think Amazon or Etsy. For vendors, the opportunity to grow sales through marketplaces is massive. In 2018, digital B2B sales exceeded $1 trillion for the first time, and they’ve continued accelerating since then, thanks to Covid-19.
As this growth trend continues, we are seeing these online B2B marketplaces mimic the B2C buying experience, particularly in the area of payments. Many sites have tried experimenting with new features within their B2B offerings; yet, nearly half of all B2B transactions are still manual and mostly invoice-based.
B2B Marketplace Payments Have Changed
Buyers love marketplaces because they offer functions ranging from vendor research and reviews to product options and one-cart checkout. However, payment options on B2B marketplaces lag behind the rest of the experience, are sometimes remarkably limited, and do not match customer expectations. Too often, B2B purchases via online marketplaces can be challenging for buyers and leave sellers with little control.
Just a year or so ago, many B2B marketplaces only offered standard credit card-based transactions. And although it wasn’t ideal, it was okay back then. Our CEO Brandon explains, “We often see the B2B world trend a few years behind B2C, meaning it’s not a huge surprise that there’s truly an uptick in B2B marketplace popularity a few years after Amazon has taken a firm grasp on the B2C space and made great strides in B2B. Unlike B2C marketplaces though, B2B buyers are tasked with making large purchases, a process that is complex and oftentimes can’t be slapped on a credit card.”
But now, advances in modern payment technology—including initiatives from existing marketplaces—are disrupting how B2B marketplace payments are made. B2B sellers who can rise to the occasion and match buyer expectations will greatly improve sales and grow their customer base.
How TreviPay Can Help
That’s why TreviPay is here to help B2B sellers realize the potential for sales via marketplaces, break down the complexities of a B2B sale, and discuss how our technology improves the payment process for buyers and sellers. As a leading player in the B2B marketplace payments space, we offer:
- Marketplace-branded payment button
- Dynamic pricing and spend management
- Invoicing with purchase orders
- Credit decisions in less than 30 seconds
- High approval rates to increase transaction volume
- Flexible net terms so customers can pay the way they prefer to
- Settlement to you in as little as 48 hours, so you can pay your sellers
- World-class fraud mitigation processes
Download Build Better Payments for B2B Marketplaces or, if you prefer, start a conversation to learn more about how to future-proof your B2B marketplace payments platform. Whether you’re new to selling on marketplaces, had a negative experience with them in the past, or operate one of your own, we hope this white paper serves as a guidepost while you plan your 2022 digital sales strategy.