B2B marketplaces have revolutionised the way commercial customers shop online. But what is a B2B marketplace and what are its advantages? How do you build a marketplace? In this article, we discuss the key elements of B2B marketplaces, including what they are, how they work, how to build one, their advantages, and more.

What's in this article?

• What is a B2B marketplace?
  
• How do B2B marketplaces work?
  
• What are the different types of B2B marketplaces?
  
• What are a B2B marketplace's obligations?
  
• What are the benefits of B2B marketplaces?
  
• How can you build a B2B platform?
  
• How Stripe Connect can help
  

What is a B2B marketplace?

A B2B marketplace is an online retail platform that serves as an intermediary, connecting sellers and commercial customers. The platform handles most logistics, including transactions, website maintenance and inbound marketing. It also allows multiple sellers to sell their products and services on the site.

Businesses usually use B2B marketplaces to purchase specialised or bulk products or services.

How do B2B marketplaces work?

B2B marketplaces connect companies looking to sell products and services with businesses looking to buy them. There are three main parties involved in online B2B marketplace transactions:

• Operator: Creates and maintains the platform
  
• Seller: Sells products and services on the platform
  
• Commercial customer: Makes purchases on the platform
  

B2B marketplaces usually host many sellers who can offer their entire catalogues to the platform. This gives customers a wider selection of options. They can research and compare products, services and prices and choose what suits them best.

Sellers are responsible for providing detailed descriptions of their products and managing their inventory. The marketplace ensures that the shopping experience is user-friendly and secure.

What are the different types of B2B marketplaces?

There are several types of B2B platforms where businesses might sell their products and services. These include general marketplaces, specialised marketplaces and marketplaces targeted at local markets.

General marketplaces offer a wide range of products and services, including industrial tools, food, clothing, electronics, and much more. Amazon Business, Cdiscount Pro, Rakuten Business and Alibaba are some of the most popular general marketplaces in France.

Some B2B marketplaces specialise in a specific industry or sector, such as:

• Freelance work (e.g. Malt, Fiverr)
  
• Technology
  
• Industrial tools (e.g. Europages, Mercateo)
  
• Agriculture (e.g. Agriconomie)
  
• Construction (e.g. ManoManoPro, ProMaterial)
  
• Food and the food service industry (e.g. FoodMeUp, Choco)
  
• Health
  
• Fashion and artisanal products (e.g. Ankorstore, Faire)
  

Other marketplaces – such as Business France – only sell French products and services.

What are a B2B marketplace's obligations?

B2B marketplaces must meet certain requirements, especially regarding transparency and security. Here are some details about those requirements:

• Transparency and loyalty
  Marketplaces must specify how sellers' products will appear on the website, including how they will be catalogued and categorised and how product reviews are displayed.

• Terms of service
  The general conditions of sale dictate the platform's terms of use for each party (i.e. customer, seller and platform). The terms determine what is authorised on the platform and often contain legal information on the platform's operator.

• General Data Protection Regulation (GDPR)
  GDPR is a European Regulation aimed at protecting personal data in the EU. B2B marketplaces must make sure to protect personal rights and secure user data as required by law.

What are the benefits of B2B marketplaces?

B2B marketplaces offer a number of benefits for sellers and customers. For businesses, online marketplaces simplify transactions and help the business keep up with evolving customer preferences.

Here are some benefits that B2B marketplaces offer sellers:

• Fast route to market: This is a huge advantage for businesses of all kinds.
  
• Ease of use: The platform offers an intuitive interface that is beneficial for all sellers.
  
• Lower costs and fewer administrative tasks: The platform handles upgrades and website maintenance.
  
• Visibility of products and services: The platform manages search engine optimisation (SEO) and gives sellers access to new customers.
  

Increased sales and revenue: Marketplaces act as an additional sales channel.

For customers, B2B marketplaces can offer a variety of benefits, including:

• Greater selection of products and services: Marketplaces include a number of sellers.
  
• Centralised location: Customers can compare products and services in one place.
  
• Competitive prices: On the platform, sellers often consider competitors' prices when setting their own.
  
• Time savings: Customers have access to search filters and buying history, which can speed up their shopping experience.
  

How can you build a B2B platform?

Creating a B2B platform involves several distinct steps:

• Conduct market research.
  
• Define your parameters, including marketplace type, income type (e.g. sales commissions, subscription models, additional services), payment methods (e.g. "buy now, pay later", international payments) and volume discounts.
  
• Outline a budget that includes website building and maintenance costs.
  
• Choose your tools (e.g. software, payment services, third-party services)
  
• Design a legal framework to ensure your B2B platform meets legal requirements. This can include sales agreements, value-added tax, data protection, and more.
  
• Choose your sellers by evaluating their quality, profitability, trustworthiness, professionalism, products and current customer satisfaction.
  
• Build a reliable customer service programme.
  
• Develop a launch plan.
  

It's important to be aware of commercial restrictions in some countries and to keep up with new technologies (e.g. artificial intelligence [AI]) that enhance the shopping experience for customers. You might want to include a multi-user option, chatbot or search bar with an auto-complete feature to improve the customer experience.

How Stripe Connect can help

Stripe Connect orchestrates money movement across multiple parties for software platforms and marketplaces. It offers quick onboarding, embedded components, global payouts, and more.

Connect can help you:

• Launch in weeks: Use Stripe-hosted or embedded functionality to go live faster and avoid the up-front costs and development time usually required for payment facilitation.
  
• Manage payments at scale: Use tooling and services from Stripe so you don't have to dedicate extra resources to margin reporting, tax forms, risk, global payment methods or onboarding compliance.
  
• Grow globally: Help your users reach more customers worldwide with local payment methods and the ability to easily calculate sales tax, VAT and GST.
  
• Build new lines of revenue: Optimise payment revenue by collecting fees on each transaction. Monetise Stripe's capabilities by enabling in-person payments, instant payouts, sales tax collection, financing, expense cards, and more on your platform.
  

Learn more about Stripe Connect or get started today.