The Online Marketplace Advantage

3The Marketplace Revolution Comes to B2B

The people manufacturing and selling the goods that power global business giants, from furniture to vaccines, aren't so different from everyone else. Like most of us, they have grown accustomed in their personal lives to hunting down merchandise on marketplaces. Whether it's kitchen equipment or rock‐climbing gear, they compare options and often buy with a single click. Yet there's been a disconnect between home and work. Consequently, while consumer marketplaces rocketed ahead quickly, B2B marketplaces have been a step or two behind. Now, though, they're sprinting to catch up.

One reason for this delay is that many enterprises have heavily invested in high‐touch systems and processes. They operate with complex constellations of buyers and suppliers, each with their own relationships to navigate. These hinge on expectations of credibility, integrity, and authenticity. Business buyers seek to purchase from experts that they can trust to deliver the right product at the right time. Why? Because they aren't spending $50 or $100, but much more. And if a component doesn't fit just right or arrive on time, it's not just a matter of swapping it for the right size or waiting an extra few days. It means business operations could very well shut down.

However, given the efficiencies of online marketplaces, it was just a matter of time before they spread into B2B. Indeed, the model that offers customers so much choice, flexibility, and speed is ...