This article discusses the $100 trillion opportunity in marketplaces, particularly in the B2B sector. While mobile and cloud technologies have dominated the past decade, there are still massive untapped markets in B2B commerce. Only a small percentage of B2B transactions happen online, with many still relying on traditional methods such as phone calls and in-person meetings. Faire, a successful B2B marketplace, serves as a case study for the potential of this industry. The article highlights the importance of high fragmentation, data-driven discovery, and bringing existing relationships online in the success of B2B marketplaces. Additionally, it mentions the rise of vertical B2B marketplaces in various industries and the factors contributing to the growth of this sector in the 2020s.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| B2B marketplaces are a massive opportunity | Increase in online B2B transactions | Higher percentage of B2B transactions | Inefficiency and complexity of B2B commerce |
| High fragmentation on both sides of marketplace | Intermediary role of marketplace | Increased value of B2B marketplaces | Reduction of disintermediation risk |
| Discovery is mission-critical and data-driven | Importance of data in discovery | Personalized recommendations and insights | Better competition against Amazon |
| Bringing existing relationships online | Shift to online relationships | More retailers and brands on the platform | Incentives for retailers and brands |
| Financial services integration | Embedding payments and net-60 terms | Reduced risk and improved working capital | Painpoint in B2B transactions |
| Rise of vertical B2B marketplaces | Vertical focus in B2B marketplaces | Industry-specific marketplaces | Opportunities in specialized markets |
| Timing is right for B2B marketplace growth | Acceleration of B2B digitization | Increased formation of B2B startups | E-commerce penetration and digital natives |