B2B e-commerce

B2B e-commerce, short for business-to-business electronic commerce, refers to the sale of goods or services between businesses through an online sales platform. It helps improve the efficiency and effectiveness of a company’s sales operations. Instead of handling orders manually through sales representatives, telephone, or e-mail, companies now process orders digitally, which helps reduce administrative and operational costs.

B2B characteristics

Manufacturing companies obtain components or raw materials from other companies and then sell to a wholesaler, distributor, or retail customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles.

Market development and trends

The B2B e-commerce market is growing rapidly. In 2014, 63% of industrial supplies buyers made their purchases online. The US market was projected to grow from $780 billion in 2015 to $1.1 trillion by 2020, but recent data suggests that it is even larger. In 2022, just over 10% of B2B product sales, totaling $1.676 trillion, were made through e-commerce websites. This growth trend is expected to continue strongly until at least 2026. The European Union Enterprise policy aims to "enhance trust and confidence" in B2B electronic markets.
In the US, B2B e-commerce is expected to reach $1.8 trillion by 2023. This growth is being driven by a number of factors, including the increasing adoption of cloud computing, the growth of mobile commerce, and the rising demand for end-to-end supply chain solutions.