How Many B2B Markets Are There?
The B2B market is huge. There are more than 2 trillion dollars being exchanged with this type of business every year. With so much money exchanging hands, it can be difficult to keep track of which markets are the most profitable. This article will give you an overview of the three main types of markets and provide a list of some examples!
The three main types of markets are consumer, business-to-business (B to B or B), and business-to-consumer.
Consumer Marketplaces Include Amazon For Books, Etsy For Handcrafted Goods, Zappos For Footwear, And eBay.
Businesses buy products from suppliers who have less expertise in the production process but cheaper labor costs than a company that produces its own product. Companies may also use wholesalers as intermediaries between manufacturers and retailers so they can deal with one higher volume distributor instead of many small ones. Walmart is an example of this type of marketplace because it buys products wholesale from overseas factories at low prices then sells them retail at much higher profits. *Typically you’ll find this type of marketplace in smaller, less developed countries.
Business-To-Business Marketplaces Include Alibaba For Wholesale Products And eBay Enterprise For Business To Business Auctions.
This is the largest type of B to B marketplace because it includes any company that produces goods or provides services on behalf of another company. It can be difficult distinguishing between consumer and business markets because many companies have both a retail version and an online store where they sell their goods at higher prices. For example, Amazon’s main business is selling books but they also own Zappos which sells shoes as well as other types of retail items like clothing, electronics, jewelry etc. Businesses may use these sites to purchase needed materials from suppliers who might not offer those particular supplies.
Business-To-Consumer Marketplaces Include, For Example, Airbnb For Accommodations And Uber For Transportation.
This is the most popular type of marketplace because it’s an exchange between a business and individual customers. Businesses in this category often provide services exclusively to consumers that would be too small or unprofitable to create on their own. For example, there may not be enough demand from people who live close by but if they can reach more distant areas with online advertising then they are able to make money off those sales as well.
Some examples: Amazon is one of the world’s largest B to C markets where people buy goods like books, electronics, clothing etc., while Alibaba is one of the world’s largest wholesale markets where businesses can buy goods from wholesalers. Some examples of consumer markets are Amazon for books, Etsy for handcrafted goods and Zappos for footwear while some business-to-business marketplaces include Alibaba which is one of the world’s largest wholesale inventory providers and eBay Enterprise which provides B to B auctions.
We hope this blog has been helpful in clarifying the different types of B2B markets. If you need help determining which one your company falls into, or want to learn more about how we can help with marketing and strategy for a B2B organization, please contact us!