E-commerce is the notion of purchasing or selling of products over the Internet. E-commerce or Electronic commerce draws on technologies such as mobile commerce, supply chain management, Internet marketing, Inventory management systems, automated data collection systems and so on.
When a company sells products through their website directly to individual customers, they’re engaging in B2C e-commerce. B2B, on the other hand, stands for ‘Business to Business’, and is used to refer to transactions between two companies. So, a wholesale manufacturer selling to a retailer is engaging in B2B e-commerce.
E-Commerce has transformed the way business is done in India. The Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Much growth of the industry has been triggered by increasing internet and smartphone penetration. Nevertheless, the fact is that B2B e-commerce is growing faster than online consumer sales and it has enormous potential in it. Being successful in B2B online sales is not easy but highly rewarding.
India’s B2B e-commerce market is currently estimated at $53 billion and is expected to double to $100 billion by 2020. Digitization in the supply chain eco-system, especially traders, wholesalers, dealers, retailers, consumers using Apps and other platform driven methods is the key to stickiness and growth. Matter of the next 3-5 years when digital app driven platforms are going to manage market inventory in this segment, as they currently are using secondary and tertiary supply chain digitization in the FMCG segment etc.
Technology is helping manufacturers, by introducing products into the market within a short span of time compared to the traditional market. Also, high-quality products without any brand name are becoming brands over-night challenging the status quo and demanding a premium. Logistics continues to be a driving factor for pricing. Lastly, credit control will continue to drive volume, what needs to be determined is real consumption and consumption for the future.
Kobster is growing as a niche brand in the B2B e-commerce space in India. Kobster Elite is the pioneer among the e-procurement tools which Indian corporates procure from. As B2B sector Indian market expected to outgrow B2C sector, sole B2B companies like Kobster with a very good understanding of the Industry will be the first option for a Corporate or a vendor without any second thought.
With a largely growing business and corporates in India, procurement is a mandatory area which cant be denied or refused. With this, the B2B procurement is also catching up in India and in no time it will outgrow the B2C sector as the potential is huge in this industry.