Alibaba.com has released its B2B Digital Outlook 2022 Report, which details the trends that underpin the historic growth in commerce as of 2021. The report explains how e-commerce in the B2B space is driving this growth, while also discussing how it may affect global trade in the future.
In the report, which also includes data from our country, the rate of revenue from online orders in Turkey is around 13.9% in 2020. This rate is expected to reach 14.9 percent in 2022 and increase to 16.8% in 2026. Here are the details…
The pandemic has increased the importance of e-commerce
Although 2021 and 2022 were a challenging year for Turkey, it was a hopeful year for global trade. While high hopes were raised that the worst days were now over after the pangs of the COVID-19 pandemic, the world was now waiting for a jump in trade.
Affected by volatile global demand and the wave of digital transformation, commerce has been better than ever in 2021. The United Nations, UNCTAD and the IMF announced that there will be strong growth indicators for this year.
Despite all the challenges posed by rising energy prices, higher transportation costs, and job shortages exacerbating supply chain disruptions, global trade hit a historic record of US$28 trillion, 11 percent above pre-Covid levels.
The Digital Vision 2022 Report reveals how e-commerce in the B2B space has played a key role in driving business growth this year. Thanks to the ongoing trend since 2020, B2B e-commerce has mediated the recovery globally and supported companies around the world in building resilience to the headwinds brought by the pandemic.
The global B2B market is still going through a period of turmoil that comes with the COVID-19 pandemic that emerged in 2020. Disruptions in supply chains, the cancellation of trade shows, and restrictions on physical meetups have accelerated the shift to digital commerce globally.
While large companies have sufficient resources to quickly transition to digital-focused purchasing, SMEs have faced a number of challenges, such as lack of resources, budget, and expertise and experience in selling and buying their goods online.
With this transition, SMEs are increasingly looking for experienced partners in the field of B2B e-commerce. Thus, SMEs were able to find the tools, platforms and support they would need while strengthening their digital presence and evolving with this new way of doing business.
Alibaba.com Turkey Customer Experience and Marketing Manager Sinem Salihoğlu stated that the only thing left in the field of commerce from the current pandemic will be the power of online B2B trade and conveyed her views on the subject; ‘While trying to cope with the troubles and difficulties of the past two years, the internet has served as a branch to hold on to life for many companies.
Somehow, buyers and sellers from all over the world have become much closer to each other. E-commerce has made cross-border commerce more accessible than ever before, creating opportunities for entrepreneurs around the world. The growth of e-commerce in the B2B field seems to continue with the increase in exports in an environment where physical interaction decreases.
SMEs are also expected to expand their product purchases while increasing their digital footprint and visibility. When we look at the journey of the B2B buyer, as included in the Digital Overview 2022 Report, we see that besides trade fairs and physical meetings, they focus on online supply channels to bring their products to a larger scale and improve their supply processes.
When we examine the journey of the B2B supplier, we can clearly understand that, in addition to being a sales platform, reputable e-commerce platforms offer suppliers valuable data for stocking and marketing, while at the same time increasing visibility and expected customers and securing new leads.’
According to the published report, the increase in e-commerce in the B2B space experienced during the pandemic is expected to continue after the recovery.
Lockdown periods have led buyers to run their business from home, and more and more buyers have become experts at sourcing goods online for their companies, becoming habitual. This was true for both public platforms and private internal apps. Many buyers and sellers in Europe see a “hybrid” strategy for future trade fair participation and doing business with an online presence.
According to SMEs, they plan to participate in trade shows remotely for their retail needs, while attending trade shows for their supply needs “with a planned use of e-commerce platforms”. The current dual approach to purchasing is summarized in the report as follows;
Trade Shows
- Certain industries continue to exist, including beauty & personal care and apparel.
- It offers the opportunity to communicate and make connections.
- The machine has waned in industries including the food & beverage industries.
- Increased health risk from travel
online
- Well-known, validated, practical and easy-to-use platforms
- Access to a wide variety of products across industries and geographies
- Decreased opportunity to view and try products
- Elimination of personal connection with business partners
Being able to trade on platforms with global reach is becoming more and more important for suppliers in various industries where demand is driven by exports. While the rate of revenue from online orders in Turkey was 13.9% in 2020, this rate is expected to reach 14.9% in 2022 and reach 16.8% in 2026.