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Y Combinator analysis of B2B marketplace leader, Faire, delivers analysis on growing B2B eCommerce market. Today [2020], only 4% of B2B sales occur online, with Amazon Business driving at least $10 billion in sales annually. 49% of transactions are still done manually via phone, fax, or in-person meetings with sales representatives and account managers. The remaining transactions happen via electronic data exchange (EDI) and e-procurement systems, old-school technologies specifically designed for B2B transactions. B2B eCommerce is growing rapidly, accelerated by COVID restrictions over the past 2 years. Corporate buyers now prefer eCommerce and remote purchases to in-person, and for the first time in 2021 B2B eCommerce sales now equal revenues from in-person. From McKinsey, "Busting the five biggest B2B e-commerce myths": “Two-thirds of corporate customers intentionally reach for digital or remote in-person engagement when given a choice. Moreover, they’re doing so at every stage of the purchasing journey. In all, e-commerce has surpassed in-person as the single most effective channel.” “B2B customers are voting with their dollars: e-commerce and in-person sales are tied as the top-producing revenue channels.” “Business buyers have shed whatever concerns they may once have had about completing major transactions online. More than one-third (35 percent) now say they are willing to spend $500,000 or more in a single transaction on digital channels, a figure that has grown steadily over the past 12 months, and a whopping 15 percent of corporate decision makers are comfortable making purchases worth more than $1 million online.”  |
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