Accelerating Digital Business with Enterprise Marketplaces using Sitecore Experience Cloud Part 2: Why a Enterprise Digital Marketplace
So let's take the example of one of the most prominent disruptor in marketplaces, Amazon.
Amazon Business, the company's enterprise marketplace (B2B) formally launched in 2015 (originally in 2012) and 1 year later it disclosed $1B in revenue. It then only took 3 years to grow from $1B to $10B in sales in sales, compared to AWS which took 10 years to achieve the same milestone. Today, 55 of the Fortune 100 companies purchase products through its business marketplace and B2B revenue is expected to overtake B2C side of the business.
Gartner's research findings:
- As of early 2019, only 56 percent of B2B companies had an e-commerce site — and only 11 percent had a marketplace.
- By 2023, at least 70% of the enterprise marketplaces launched will serve B2B transactions.
- By 2023, organizations operating enterprise marketplaces for 1 year will see at least 10% increase in net digital revenue.
- Before COVID-19, marketplaces rang up half of global online sales — $2 trillion on the top 100 sites.
- Digitization has accelerated even further. 40% of consumers are buying more online than ever before.
- Almost 60% of these marketplaces are based in the United States, and they are continuing to change the way consumers shop.
This leads us to the the 3 most common incentives for a enterprise marketplace operators:
- Growing business (obviously): this includes activating new channels of commerce, leveraing core cross-functional assets and capabilities, enriching product offerings (cross sell/up sell)
- Improving experiences: this includes enhancing partner, vendor, customer, and consumer engagement management and launching new products, services, offerings and capabilities.
- Reducing cost and improving efficiency: this includes streamlining buying process and controlling procurement and processing costs at scale.