On a global level the B2B ecommerce was expected to reach $1.7 trillion by the year 2015, over riding the B2B segment all around the world. And the Ecumen reports also suggest that that the business to business segment of India is on an anticipatory growth of two and a half times reaching a whopping INR 45 lakh crore. And presently the growth rate show that the Indian market is at an estimated INR 19.3 crore mark.
As per Mukul Sachan, Cofiunder of LendingKart, “India’s B2B ecommerce market is six times larger than B2C and is expected to reach $700 billion by 2020”. Source: The Economic Times
The rise in the demand for a whole new variety of products shows a particular consumption pattern of the consumers. It is a clear representation of how B2B buyers are showing a change not only purchasing goods but also how they are discovering them. According to studies, 74% of B2B buyers research online for products out of which 30% choose to purchase it online. Though the purchase rate is still low but a rise in numbers, estimated 56% is anticipated by the year 2017. They also agree on opting for online methods as it is saves time as well as money. And also the fact that the lack of a middleman is even more appealing to the B2B buyers.
In addition to the above stated factors online platforms certainly do bring out a price transparency and clean automated transactions which is easier to keep a track of. Apart from these, a wide range of macro factors are also influencing the ecommerce market, among which the forthcoming rollout of the proposed goods and Service tax that is believed to simplify businesses all across the nation. If we go by the government figures India possesses around 36 million units under the micro, small and medium enterprises and hence the requirement for a digital platform for these is massive and path breaking. India’s ecommerce industry is to reach the golden period in another five years where we can foresee the figures to touch $100 billion to $150 billion.
Some of the Indian b2b ecommerce players are:
One of the main factor strengthening the ecommerce industry is the availability of credit. The up rise of the many finance technologies and non-banking companies have ensured this sustained credit to online suppliers. And one of the major advantages B2B buyers face that the industry is devoid of any tax intricacies as there is no need to file service tax, excise regulations from each state that goods are being sourced.B2B is certainly, mind you the ‘huge’ thing bringing small and sellers and easing business possibilities for them.