Success factors for B2B marketplaces. Expert voices (with abstract)
| Success factors for B2B marketplaces. Expert voices (with abstract) | |
|---|---|
| Published By | [[Spryker]] |
| Publish Date | 2022 |
| Authors | Lennart A. Paul,
Nils Seebach, Michael Saitow, Stefan Grimm, Goppi Vaddi, Christopher Möhle, Alexander Damm, Martin Himmel |
| Topics | B2B, Marketplace, B2B marketplace |
| Statistics | |
| Article Size | words |
| Diagrams | No |
| Downloadable Version | No |
| Reviewers | |
| Page Owner | [[Nikolay Sidelnikov]] |
| Summary Author | [[Nikolay Sidelnikov]] |
Abstract
Article by Spryker contains thoughts of 8 experts about the most important success factors for B2B marketplaces and sure-fire route to failure. Experts are founders and top managers that have their own experience of launching and managing marketplaces what makes their conclusions especially unique and valuable.
Lennart A. Paul explains the following topics.
- Pricing: In B2B marketplaces, competitiveness lies in offering value for money rather than being the absolute cheapest, exemplified by companies like Conrad and Amazon Business.
- Processes: Long-term success in B2B marketplaces requires mastering niche-specific procurement processes to become indispensable to customers, illustrated by WUCATO and Sourceability.
- Performance: Effective B2B marketplaces go beyond just listing products, focusing on seller and data management for growth, and optimizing logistics, as seen with Metro Markets and other platforms like Manomano (Pro) and Klarx.
Nils Seebach explains the following topics.
When developing a successful B2B marketplace, it's essential to meet B2C standards while also addressing unique B2B needs, such as:
- multi-account logins
- customizable pricing
- detailed product information.
Providing a comprehensive B2B service experience is crucial for attracting and retaining buyers in this competitive market.
Michael Saitow touches the following topics.
- Technical competence and professional master data management (MDM) for smooth operation and data quality.
- Wide and deep product availability to meet specific B2B needs and prevent customer migration.
- User focus, including investing in relationship management, providing convenience, and continuous development based on user needs.
- Transparency and neutrality as values of the B2B online marketplace, which enhance user experience and trust.
- Industry know-how for understanding market dynamics and effectively digitizing business processes to offer added value.
Stefan Grimm is focused on ownership aspect, that include:
- Tech Ownership: Establishing technical competence within the company, as lack of ownership leads to dependence on external service providers, hindering speed and efficiency in digitalization efforts.
- Product Ownership: Understanding customer needs, market dynamics, and technical possibilities to differentiate the product effectively, focusing on creating working, automated processes tailored to specific market niches.
- Business Model (Mission): Underestimating the challenge of defining and enforcing the business model and mission, especially in B2B environments where sellers may resist changes, highlighting the importance of building a team dedicated to upholding the mission despite challenges and temptations.
Goppi Vaddi mentions the following factors.
- Market Structure and Size: Pre-existing market structure and size play a crucial role in determining the potential success of a B2B marketplace, with high fragmentation of demand and supply being necessary for long-term viability.
- Product Complexity and Value Chain: Factors such as product complexity, intermediated value chains, and a large addressable market are foundational for building a scalable and impactful marketplace.
- Supplier Onboarding and Curation: Early establishment of supplier onboarding and curation processes is essential in B2B marketplaces to meet stringent SLA and compliance requirements, leading to strong demand-side tailwinds and marketplace entrenchment.
- End-to-End Supply Chain Management: Successful marketplaces expand their product and geographic reach, enhance service levels, and increase net take rate per transaction by taking full custody of the end-to-end supply chain, leveraging data and tech advantages.
- Expansion into Adjacent Markets: Over time, successful marketplaces leverage their expertise and advantage to penetrate adjacent markets such as commercial credit and procurement software, integrating into demand and supply-side backends for further growth.
Christopher Möhle mentions the following:
- High-performance data model needed for real-time customer-specific pricing mapping.
- Complex role-based user rights management essential for diverse B2B organizations.
- Harmonized product data crucial, ideally consolidated into standardized "golden record."
- Success relies on ERP integrations and tailored solutions for customers and vendors.
Alexander Damm explains in details the following aspects:
- Human success factor
- The quality of the providers in the marketplace
- The choice of the right technology
And Martin Himmel shares his thoughts about requirements to technology that he assumes the most important for B2B Marketplaces.