The B2B market has been bigger than the B2C market for many years – yet it is easy to think that the B2C market is larger, and it is in terms of customers. But the B2B eCommerce market has a current value of $6.64 trillion, whereas the B2C market is $3.67 trillion. That’s a sizable difference considering there are meant to be more consumers than there are businesses – but it isn’t the number of buyers that correlates to the staggering figure – it’s the size of the transactions.
The size of the transactions is just one reason why the B2B market is so huge – let’s look at more reasons.
Markets Joining Together
The main reason why the B2B market is so much bigger than B2C is because of the numerous markets that make the one giant B2B market. Yes, it may seem as though there are fewer buyers in the B2B buying market, but these buyers come from every industry you can think of. These markets come together to form bigger transactions, which is why the B2B market is so much more expensive.
Take the automotive industry, for example. You can break this down into car sales, manufacturing, individual parts manufacturing, and many more. These then join together to make one big buying market worth billions. We, as consumers, are insignificant buying one car compared to a showroom that might buy 50 of them at once – that should put it into perspective.
Better Customer Retention Schemes
90% of brands in the US have a loyalty scheme, but not all of them work as they should do. A loyalty scheme works to reward buyers each time they spend – and it goes a long way. Interestingly, a few years ago, 60% of B2B buyers said they had never had an experience with a brand that made them feel special, and 54% would drop a business if they didn’t feel valued.
In came the development of a B2B customer loyalty platform like the one offered by Incentivesmart to foster a rewarding buyer-to-business relationship. Improved b2b loyalty programs have helped businesses elevate their buyer experience, increase sales by up to 95%, and ensure loyal customers’ return. You’ll notice that the B2C market focuses more on new customers rather than loyal ones.
Ask yourself, how often are you rewarded for being a loyal customer compared to how many offers you see for new customers as a B2C consumer?
Boosts By Technological Advances
The global B2B eCommerce market developments are thanks to technology advancing rapidly. Research conducted by Grand View Research stated that small businesses in India, South Africa, and Russia – areas where small businesses were once struggling to thrive – are now growing at a dramatic rate.
Digital B2B models based on better payment solutions and methods of customer contact have made business more accessible in developing countries which is only adding to the total value of the B2B market.
Advancements in other areas have also contributed to the mammoth increase in market value. The advancements in artificial intelligence, for example, have been linked to easier procurement, more personalized experiences and have enabled B2B brands to cut spending costs massively.
Experts predict the B2B market to be worth over $28 trillion by the end of 2028. As the years go by, hundreds of thousands of businesses join the B2B market and contribute to its staggering market value growth. Compared to the B2C market – B2B will always be valued higher.