10 steps for unlocking B2B marketplace success (according to marketplace founders!)
Have you checked out our recent B2B marketplaces research? Honestly, it’s ok if not. We get it. You’re a busy marketplace leader. You’re laser focused on the growth and success of your platform. And although we highly recommend checking out Behind the scenes of winning B2B marketplaces, you might not have time to read a 6,000 word report…
But we couldn’t bear the thought of you missing out on the goldmine of expert advice and insights that the pages of the report hold. We surveyed founders and leaders from hundreds of B2B marketplaces to uncover the strategies that have helped them – and the mistakes they have learned from – on their journey to success.
And guess what? We’re going to share their insights with you. Right here. Right now. Here’s the 10 steps you need to take to unlock the winning formula for your B2B marketplace.
1. Your marketplace must provide end-to-end value
Marketplaces are no longer just somewhere for buyers and sellers to meet. They are full-service platforms that bring new and unique benefits to both parties at every stage of the transaction.
“A successful B2B marketplace should offer value to customers from the beginning of a transaction until the end,” says Ilias Sousis, CEO & Co-founder, Wikifarmer. “This means a 360º platform that offers digital services such as ordering, financing, logistics, quality controls and post-sales servicing.”
2. Think strategically about achieving critical mass
If you have too many buyers on your platform, they can’t find the products they need. With too many sellers, the majority don’t end up selling anything. Both scenarios lead to swathes of unhappy customers, so getting the right balance is really important.
In his guest chapter of the report, marketplace expert and VC investor Sameer Singh details the three ways B2B marketplaces can reach critical mass while avoiding an imbalance of buyers and sellers:
- Scalable acquisition: a marketplace scenario where one side of the marketplace – buyers or sellers – are easily able to discover and use your marketplace without any human involvement.
- Virality: where users share the marketplace in the process of using it.
- Side-switching: when a marketplace quickly populates the platform by onboarding customers that are both buyer and seller.
3. Marketplaces must engage in promotional activities that attract buyers and sellers
“[Marketplace success] requires superior user experience but also a strong skill set in marketing and brand building to establish yourself in the market,” says Walter Masalin, Founder of Cronvall.
According to our survey, the most common marketing channels for reaching buyers and sellers are:
- Organic social media
- Events
4. The needs of buyers and sellers are of equal importance
Your marketplace has two types of customers. You have type one, the buyers, who purchase goods or services, and you have type two, the sellers, who provide the aforementioned goods or services. As the “middle man” your marketplace has a unique responsibility to provide a service to both these groups.
“Becoming a successful B2B marketplace requires building a robust platform that [...] continuously adapts to meet the evolving needs of both buyers and sellers in the business ecosystem,” says Michal Laskowski, CEO and Co-founder of CottonBee
5. Very little is as important in marketplace success as trust, reputation and credibility
“The B2B food ingredients industry is a very traditional industry where relationships have always been crucial in success,” says Jasper Schouten, CEO and Co-founder of ingredients marketplace 1-2-Taste.
But it’s not just the food and beverages industry – digital marketplaces in all sectors must respect the B2B tradition of relationship-building and trust if they want to be successful. How? Thorough vetting and onboarding, providing transparent information and review gathering are just some of the recommendations in our report.
6. Don’t underestimate the power of payments
Payments (and the checkout in general) have emerged as some of the most important aspects of the B2B e-commerce journey. Innovative sellers have elevated payments from a dusty back-office process to a key position in their e-commerce strategies. The forward-thinking and digital-first nature of marketplace creators means that they have readily adopted this stance and are at the forefront of the B2B payments revolution.
“Payment facilities and guaranteed payment [are essential for marketplace success],” says Alix Truelle, B2B Development Manager at Pourdebon
7. Marketplaces must be intentional and solve a genuine pain
Many of the marketplace operators to whom we spoke agreed that some marketplaces fail because they do not understand well enough their sector or their place in the market. Would-be marketplace operators take note: when establishing a new platform, do so with intention and only if you’re sure it solves a real pain point.
As Alex Collart, Managing Director at Outvise, puts it: “Marketplaces must have a clear USP (unique selling proposition), differentiated from competitors and addressing a real pain point.”
8. Marketplaces must offer value which cannot be found elsewhere
“The biggest mistake a marketplace can make is making the marketplace the goal in itself,” says Minck Hermans, COO of Vonwood. “The marketplace is a means to an end, so keep your eye on the ball of adding value to buyers and sellers.”
For a B2B marketplace to be truly successful it must go beyond the simple connection of buyers and sellers by offering some kind of value that both parties wouldn’t get from transacting independently. That could be complementary services, enhanced payment terms or simply a better selection of products.
9. Demand is high for a top-quality user experience
Having grown up with the internet at their fingertips, Millennial and Gen Z buyers have been spoiled for choice, convenience and speed when it comes to e-commerce. Now, they expect the same when buying stock, materials or services for work.
“[Marketplaces must provide] a good user experience on an intuitive, seamless, and user-friendly platform,” says Julia Heineking, Head of Marketing at CheMondis. But how, exactly? Consider improving the navigation and searchability of your marketplace, simplifying the onboarding process and upgrading the checkout.
10. Teams with vast knowledge run the most effective marketplaces
“[Successful marketplaces] understand their industry vertical and adapt to its needs and the requirements of buyers. Customer Success people with knowledge of the market [are essential],” says Jan Klawer, CMO and Co-founder of 1-2-Taste.
Many founders and other leaders agreed that the deep industry knowledge within their teams is foundational to their success, suggesting that you should invest in training for your team and tailor your marketplace specifically for your industry and also for the idiosyncrasies of B2B.
Want to take your understanding of marketplace success to the next level? There’s a lot more where this came from. Visit the Marketplaces Knowledge Hub to download your copy of Behind the Scenes of Winning B2B Marketplaces today.
