B2B e-commerce, short for business-to-businesselectronic commerce, is the sale of goods or services between businesses via an online sales portal. In general, it is used to improve the efficiency and effectiveness of a company's sales efforts. Instead of handling orders manually through sales representatives, telephone, or e-mail, companies now process orders digitally, which helps reduce administrative and operational costs.[1]
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.[2]
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,[3] 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.[4] The European UnionEnterprise policy aims to "enhance trust and confidence" in B2B electronic markets.[5]
In the US, B2B e-commerce is expected to reach $1.8 trillion by 2023.[6] 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.
↑ European Commission, Enhancing Trust and Confidence in Business-to-Business Electronic Markets, Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee, COM(2004) 479 final, published 14 July 2004
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