Embrace the B2B marketplace revolution and watch your inventory, revenue, and customer base soar. But before you dive headfirst, let's navigate the terrain.
Why the Marketplace Hype?
Forget limited product offerings and sluggish customer experiences. Marketplaces offer a treasure trove of benefits:
- Inventory Explosion: Expand your selection without holding the inventory yourself. Third-party sellers bring a diverse range of products, catering to every buyer's whim.
- Customer Delight: Imagine shorter wait times, convenient access to a wider variety of goods, and seamless buying journeys. That's the marketplace magic.
- New Revenue Streams: Monetize the ecosystem beyond product sales. Offer installation, maintenance, and other related services, tapping into a hidden gold mine.
The Numbers Don't Lie:
- 88% of distribution customers use marketplaces.
- Marketplaces deliver an average 44% increase in customers and 42% in revenue.
- Average order value (AOV) jumps by 36%.
A Calculated Leap:
Building a marketplace requires a strategic investment. Be upfront with leadership about the costs:
- Budget: Be prepared for a $3 million+ price tag.
- Personnel: Expect to hire 15+ additional staff, primarily for IT and adoption management.
- Timeline: Plan for a minimum of six months to launch.
Think Beyond Commerce:
Marketplaces are a complex ecosystem, not just a sales platform. Factor in logistics, finance, and technology needs.
Buy vs. Build:
Consider the advantages of pre-built marketplace platforms - cost savings, faster adoption, and smoother integrations.
Phased Launch:
Don't attempt an all-at-once sprint. Take smaller, controlled steps to validate the model, identify and address challenges, and ensure a successful launch.
Why viax?
Its secret lies in its powerful core capabilities and service marketplace features, creating a seamless platform for buyers and sellers to navigate complex transactions. But the magic doesn't stop there. viax also aligns perfectly with the evolving landscape of indirect procurement, as highlighted by McKinsey:
- From Limited to Mainstream: More companies are recognizing the potential of online marketplaces, and as these platforms mature, expect a significant shift towards them.
- PaaS Takes the Wheel: Providers like viax, offering Procurement-as-a-Service (PaaS), take the burden off your shoulders by hosting and managing the entire marketplace infrastructure.
- Supplier Magnet: Working with business units to understand demand and ensuring suppliers' offerings meet your needs will keep them engaged and attract more.
- Data-driven Procurement: Managing a marketplace requires new skills. viax helps you leverage data to identify and manage supplier performance, ensuring optimal outcomes.
- Private Marketplace Advantage: Create your own pre-approved vendor marketplace for local managers, simplifying service access and streamlining processes.
By partnering with viax, you can:
- Reduce indirect spend through efficient marketplace procurement.
- Shift your procurement function to a data-driven, future-proof model.
- Empower local managers with easy access to pre-approved services.
- Focus on strategic sourcing while viax handles the operational heavy lifting.
Building a B2B marketplace is an exciting journey, paved with potential for growth and profitability. By understanding the landscape, planning meticulously, and embracing a strategic approach, you can navigate the bumps and reach your destination - a thriving online marketplace that fuels your business for years to come.
Interested in learning more about viax.io? Reach out, we'd love to hear from you.