B2B E-Commerce Market

Market Definition

B2B e-commerce (Business-to-Business electronic commerce) refers to the digital exchange of goods, services or information between businesses. In b2b transactions, one business supplies products or services to another, typically in bulk. 

This form of e-commerce is conducted through online platforms, marketplaces, or specialized business networks, facilitating the streamlining of procurement, sales processes, and supply chain management for organizations.

B2B E-commerce Market Overview

Global b2b e-commerce market size was valued at USD 19.13 billion in 2023 and is projected to grow from USD 21.43 billion in 2024 to USD 62.43 billion by 2031, exhibiting a CAGR of 16.51% during the forecast period. 

The market is growing due to increased digital transformation, the need for streamlined operations, and enhanced customer experiences. Businesses are adopting e-commerce platforms to improve efficiency, reduce operational costs, and expand their reach globally. 

Real-time data analysis, automation, and cloud-based solutions are fueling growth by optimizing supply chain management, pricing strategies, and order fulfillment processes. Expanding applications in manufacturing and wholesale sectors, along with advanced technologies such as AI and IoT, are fostering innovation and improving efficiency in supply chain management and customer interactions

Major companies operating in the B2B e-commerce market are Alibaba.com, Amazon.in, Inc., Publishers Representatives Limited, Thomas Publishing Company., W.W. Grainger, Inc., ChinaAseanTrade.com, eBay Inc, eworldtrade.com, Flipkart.com, IndiaMART InterMESH Ltd., DHgate.com, Focus Technology Co, Walmart, Wayfair LLC, ASOS, and Others.

The market is experiencing robust growth, mainly due to increasing digital adoption, advancements in AI and automation technologies, and the growing need for streamlined supply chains. Businesses are increasingly leveraging e-commerce platforms to improve operational efficiency, enhance customer experiences, and reach broader markets.

Key Highlights:

1. The global b2b e-commerce industry size was recorded at USD 19.13 billion in 2023.
2. The market is projected to grow at a CAGR of 16.51% from 2024 to 2031.
3. Asia-Pacific held a share of 78.44% in 2023, valued at USD 15.01 billion.
4. The manufacturing segment garnered USD 5.99 billion in revenue in 2023.
5. The intermediary-oriented segment is expected to reach USD 38.91 billion by 2031.
6. North America is anticipated to grow at a CAGR of 17.39% through the forecast period.

Market Driver

"Adopting Digital Transformation for Business Growth"

The rising demand for digital transformation is fueling e-commerce expansion. Advanced solutions improve efficiency, reduce costs, and enhance customer service by automating order processing and inventory management. Real-time data analysis helps businesses optimize pricing, forecast demand, and streamline supply chain processes.

• In January 2025, eBay announced a collaboration with OpenAI to introduce a new AI-powered virtual assistant called Operator. This assistant autonomously performs tasks across the internet, including shopping, and directs users to unique inventory on eBay. The partnership aims to expand the reach of eBay's sellers while enhancing the shopping experience for buyers. This marks a significant step in eBay's strategy to redefine e-commerce with AI technologies.

E-commerce solutions are essential for maintaining competitiveness in the rapidly evolving digital marketplace. This transformation is accelerated by factors such as the growing demand for remote work solutions and an increased emphasis on reducing operational costs. 

By adopting these digital tools, businesses can enhance agility, optimize operations, and effectively navigate the global market.

Market Challenge

"Rising Concerns Over Data Security and Privacy"

Increasing concerns over data security and privacy present notable challenges to the growth of the b2b e-commerce market. Companies must mitigate data breach risks while ensuring compliance with regulations such as GDPR and CCPA, which can be complex and resource-intensive. 

Implementing robust encryption, access controls, and securing third-party vendors is critical but complex. Balancing the minimization of data storage with operational efficiency and maintaining employee adherence to security protocols further complicate the management of data security and privacy. 

To address these challenhes, companies should implement robust data protection policies, educate employees on privacy best practices, and limit access to sensitive data. They must secure data during transfer and storage, regularly update systems, and maintain a proactive breach response plan, including legal consultation and remediation.

Market Trend

"Growing Adoption of Cloud Solutions"

Cloud computing is becoming essential for B2B organizations as it enables flexible scaling, real-time data access, and quick responses to market shifts. Cloud solutions provide valuable insights into sales and customer behavior, aiding smarter decision-making. 

Additionally, they offer improved availability, allowing teams to access data and communicate remotely, overcoming hardware limitations. Cloud tools foster collaboration, reduce infrastructure costs, and streamline knowledge sharing, thus influencing the b2b e-commerce market.

• In June 2024, Amazon Web Services (AWS) highlighted the benefits of cloud-based SCADA systems for improving industrial operations. By leveraging services such as AWS IoT SiteWise, businesses can consolidate data across multiple sites, enabling real-time monitoring and advanced analytics. These cloud solutions enhance scalability, performance, and security, while reducing costs. Despite challenges, AWS offers secure, flexible platforms that help industries like energy and utilities optimize their operations.

Cloud solutions enhance collaboration across departments and locations, leading to greater operational efficiency and better customer service. Their flexibility and speed enable rapid product launches, reducing time to market and facilitating market expansion.

B2B E-commerce Market Report Snapshot

 Market Segmentation

• By Business Model (Supplier-Oriented, Buyer-Oriented, and Intermediary-Oriented ): The intermediary-oriented segment earned USD 11.68 billion in 2023, driven by increased e-procurement adoption, B2B e-commerce growth, and demand for supply chain transparency.
• By Industry Vertical (Manufacturing, Retail & Wholesale, Automotive, Healthcare & Pharmaceuticals, IT & Telecom, Food & Beverage, Consumer Electronics, and Construction & Building Materials ): The manufacturing segment held a share of 31.32% in 2023, reflecting the sector's growing reliance on digital solutions to optimize sourcing, reduce costs, and improve collaboration with suppliers.

B2B E-commerce Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Asia-Pacific b2b e-commerce market accounted for a significant share of around 78.44% in 2023, valued at USD 15.01 billion. The dominance is attributed to the region’s rapid digitalization, the rise of online businesses, and the growing adoption of e-commerce platforms by various industries. 

Additionally, Asia-Pacific is home to some of the world's largest economies, including China, Japan, and India, where business-to-business (B2B) transactions are increasingly shifting online. The availability of a large customer base, technological advancements, and favorable government initiatives promoting e-commerce are fueling this growth.

• In October 2024, Lazada has partnered with Alibaba's Taobao to launch a dedicated fashion channel in Singapore and Malaysia. This expansion offers millions of curated fashion products from Taobao merchants, along with special promotions such as discounts and free shipping. The initiative aims to bolster Lazada’s position in the Southeast Asian fashion and lifestyle market.

The Asia-Pacific market continues to experience strong growth, propelled by technological advancements, large consumer bases, and supportive government policies. With key markets such as China, Japan, India, and Singapore contributing significantly to this growth, positioning the region for continued digital transformation and expanded cross-border business opportunities.

North America b2b e-commerce industry is poised to grow at a CAGR of 17.39% through the projection period. Leading countries such as United States and Canada are supporting this growth due to advancements in technology, increased adoption of digital tools by businesses, and strong logistical infrastructure. 

Additionally, a rising number of small and medium-sized enterprises (SMEs) are adopting B2B e-commerce platforms to streamline operations and expand their market reach. AWS AI provides a suite of advanced tools to help businesses harness the power of artificial intelligence. 

From machine learning services to deep learning frameworks, AWS empowers developers to build, train, and deploy models efficiently. Their solutions are designed for scalability, flexibility, and ease of integration, enabling enterprises to leverage AI for various tasks like automation, predictive analytics, and personalized customer experiences.

• In February 7, 2025, Rakuten Rakuma launched a full-scale cross-border sales initiative with eBay USA. The initiative allows U.S. shoppers to purchase pre-loved fashion items from Rakuma Official Shops. The products are covered by eBay’s Authenticity Guarantee for handbags, with plans to expand the service to other fashion categories. This move follows successful trials that began in May 2024, aiming to broaden international sales opportunities for Rakuma merchants.

The growth of the regional market is further fueled by advancements in technology, widespread digital adoption, and robust logistical infrastructure. The increasing integration of artificial intelligence (AI) and automation in B2B platforms is improving operational efficiency, enhancing customer experiences, and optimizing supply chains.

Regulatory Framework:

• The Consumer Protection (e-Commerce) Rules, 2019 govern e-commerce in India to ensure transparency and consumer protection. E-commerce entities must be registered and display clear seller information, including business and contact details. They are prohibited from influencing pricing or engaging in unfair practices, and must safeguard consumer data. Sellers must provide accurate pricing, safety information, and warranty details while adhering to labeling standards. E-commerce platforms must establish grievance redressal systems, resolving complaints within one month. These rules aim to promote fair practices and enhance consumer trust in the sector.
•  The Government of India has updated its Foreign Direct Investment (FDI) policy for e-commerce, allowing 100% FDI in the marketplace model under the automatic route, while prohibiting FDI in the inventory-based model. Marketplace platforms may facilitate transactions, provide support services, and manage payments but cannot own or control inventory. Sellers are responsible for post-sales delivery and customer satisfaction. The policy also requires e-commerce platforms to ensure a level playing field and refrain from influencing pricing.
• The EU's e-commerce regulations seek to establish a unified digital market, facilitating smooth operations for online businesses across member states. Key components include consumer protection, liability rules for online platforms, and cross-border service delivery. The regulations also clarify the role of intermediaries, ensuring platforms are not liable for third-party content if they follow due diligence procedures. Additionally, they simplify rules for electronic contracts, online dispute resolution, and consumer rights.
• The General Data Protection Regulation (GDPR) is a European Union law designed to protect the personal data of EU citizens. It applies to businesses worldwide that collect or process personal data. Key provisions include obtaining explicit consent for data collection, ensuring individuals' rights to access and delete data, and implementing security measures against breaches. GDPR also requires companies to appoint Data Protection Officers (DPOs) and report breaches within 72 hours. Non-compliance may result in substantial fines.

Competitive Landscape

To gain a competitive edge in the evolving b2b e-commerce industry, businesses must prioritize innovation through technologies such as AI and automation, provide a seamless Omni channel experience, and leverage data insights to personalize offerings. Expanding product ranges and prioritizing excellent customer service fosters loyalty. 

Strengthening partnerships and staying agile to market changes ensures adaptability. Ensuring compliance with data privacy and industry regulations helps maintain trust.

For instance, Alibaba Cloud highlighted its role in helping marketers personalize customer experiences using AI and machine learning. The platform provides tools like Data Intelligence and Cloud Marketing, enabling businesses to analyze customer behavior, optimize content, and deliver tailored product recommendations. 

This approach enhances targeting, engagement, and conversions, allowing marketers to offer more relevant experiences and strengthen customer satisfaction and loyalty.

• In December 3, 2024, Walmart completed its acquisition of Vizio, a leading TV brand. This strategic move will allow Walmart to enhance its digital content and expand its consumer electronics offerings. By integrating Vizio’s smart TV technology, Walmart aims to better serve its customers by providing a more personalized shopping experience and leveraging data insights. The acquisition aligns with Walmart’s broader goal to expand its online presence and digital capabilities.

List of Key Companies in B2B E-commerce Market:

• Alibaba.com
• Amazon.in, Inc.
• Publishers Representatives Limited
• Thomas Publishing Company.
• W. Grainger, Inc. 
• ChinaAseanTrade.com
• eBay Inc
• eworldtrade.com
• Flipkart.com
• IndiaMART InterMESH Ltd.
• DHgate.com
• Focus Technology Co
• Walmart
• Wayfair LLC
• ASOS

Recent Developments:

• In June 2024, Visa partnered with Amazon to offer flexible payment options for customers, allowing them to  split Amazon purchases into interest-free monthly installments, provided payments are made on time. This collaboration aims to provide consumers with greater financial flexibility, particularly for higher-priced items, and aligns with Visa's goal of enhancing digital payment solutions and the online shopping experience.
• In February 2023, eBay acquired 3PM Shield, a company specializing in marketplace compliance technology, to strengthen its platform's ability to detect policy violations. This acquisition will enhance eBay's capability to identify  counterfeit products, fraudulent listings, and problematic seller behaviorcontributing to a safer and more secure marketplace.
• In November 2024, Alibaba announced the formation of a new Alibaba E-commerce Business Group to improve synergies across its  platforms, including Taobao, Tmall, AliExpress, and Alibaba.com. The restructuring aims to foster innovation, efficiency, and customer experience by integrating technology, developing AI-driven solutions, and optimizing logistics and supply chains.