Digital commerce is dramatically changing companies' relationships with suppliers. We see more and more vertical B2B marketplaces emerging, and their market niche is constantly growing. Does this mean marketplaces will become the dominant purchasing channels in the B2B market?
A group purchasing model, on the contrary, assumes accumulating the demand of many buyers and acting as a single powerful buyer, forcing suppliers to reduce prices and improve conditions in the fight for access to an extremely high-volume channel. Like vertical marketplaces, GPOs often focus on specific niches or industries. For example, collective buying is very popular in healthcare, education, the public sector and agriculture.
Marketplaces are a great option when buying small numbers of products with unpredictable frequency. For example, for a company that produces custom technological equipment, a vertical marketplace may be preferable since demand for components is unpredictable. However, the marketplace business model itself can result in tangible costs for the supplier, and these costs will be included in the price.
We also see quite a few situations where franchisees of large network players purchase necessary equipment and consumables through specialized purchasing cooperatives.Online B2B marketplaces have emerged thanks to the proliferation of digital commerce technologies. B2B vertical marketplaces are carving out their market niche right now, aggressively asserting themselves and continually enhancing the customer experience in the battle for customer loyalty.
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