Ecommerce Storefronts, B2B Marketplaces, and Market Networks: Which is Best?
When it comes to B2B ecommerce there are two main types of platforms: storefronts and marketplaces. Both have their place in ecommerce, so it's important to understand the differences before choosing a platform for your business. But first, we need to better understand these platforms.
Beyond these two broad umbrellas there exist several subsections and hybrid models. In this article, we will focus on the three most common types – storefronts, B2B marketplaces, and private marketplace networks – and give you tips on choosing the best for your needs.
Storefronts vs. B2B Marketplaces vs. Private Networks: What Are the Main Differences?
Storefronts are your business websites, which are typically owned and operated by a single company. This gives the company control over the look, feel, and functionality of the site and also allows them to offer a customized experience to their customers. However, because storefronts are not open to other vendors they can be limited in terms of the products and services they offer.
B2B marketplaces, on the other hand, are open platforms that allow multiple businesses to sell their products and services. This gives buyers a wider selection of products to choose from, but it also means sellers have less control over the overall experience.
Current stats about B2B online marketplaces:
- The majority of B2B customers (90%) start their B2B buying journey with an online search.
- It’s estimated that B2B ecommerce site sales will reach nearly $1.77 trillion in 2022, a 12% increase compared to 2021.
- Fewer and fewer sales teams are conducting in-person meetings. From 2019-2021 over 60% of sales reps reported an increase in virtual meetings, while a recent Salesforce survey found that video conferencing is the most important sales tool.
Private market networks (like BluePallet) are part B2B ecommerce site, part communication network, and part SaaS workflow tool. This integration enables one-to-one commerce from one single location, bringing buyers and suppliers together to do business directly.
The three elements that make up a market network (Image Source)
Which Is Right for Your Business?
The answer to this question depends on your specific needs and goals. If you're a seller looking for a more customized, local experience for your customers, a storefront may be the right choice. However, if you're a buyer looking to access a wider selection of products and services, a marketplace may be a better option.
If you're looking for the best of both worlds – customization and a wide selection of products and features that make buying and selling easier – a private market network may be your best bet.
Let's take a closer look at the pros and cons of each.
Storefronts: Advantages and Disadvantages
Advantages of Storefronts:
- Offer a more customized experience for customers.
- Give you more control over the overall look and feel of your site.
- Can be less expensive to set up and maintain than marketplaces.
- Make it easier to manage your SEO and therefore, your reach.
Disadvantages of Storefronts:
- Are limited to the products and services offered by a single company.
- Can be more difficult to set up and maintain than marketplaces.
- May not offer the same level of customer service as marketplaces, since you’re limited to your own staff capabilities.
- Can be less flexible than marketplaces when it comes to adding new products and services.
B2B Marketplaces: Advantages and Disadvantages
Advantages of B2B Marketplaces:
- Offer a wider selection of products and services.
- Can be a great way to find new suppliers.
- Can be a good way to compare prices.
- Can help you build relationships with other businesses.
- Can be a good way to find new customers.
Disadvantages of Marketplaces:
- Can be less customizable than storefronts.
- Limit you to that marketplace’s reach and SEO capabilities.
- Can increase the competition for sellers, since they’ll have other businesses advertising products alongside theirs.
Private Market Networks: Advantages and Disadvantages
Advantages of Private Market Networks:
- Offer a highly customized experience for customers.
- Can be tailored to the specific needs of your business.
- Can be less expensive to set up and maintain than storefronts.
- Offer a wider selection of products and services than storefronts.
- Can be a great way to find new suppliers/buyers.
- Can be a good way to compare prices.
- Can help you build relationships with other businesses.
- Include SaaS capabilities, so you can treat them as a one-stop-shop for the buying and selling process from start to finish.
- Include automation tools, including data capture, that help you save time and money.
Disadvantages of Private Marketplaces:
- Are less customizable than storefronts.
- The wide network of buyers and sellers means increased competition for buyers.
Introducing BluePallet's Private Marketplace
At BluePallet, we offer a private marketplace that gives chemical businesses, large and small, the best of both worlds. Our platform is open to multiple businesses, which means an even playing field – but it is also carefully curated to ensure that only high-quality products and services are featured. This gives businesses a wide selection of options to choose from while still providing a customized experience.
Our platform is easy to use and set up. We take care of the details so businesses can focus on what they do best: running their operations.
To learn more about BluePallet's Private Marketplace, chat with us about how it can benefit your business. Get in touch and speak to our team today!
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