US B2B e-Commerce Sales

50% e e US B2B E-commerce Sales Demand Drivers for US B2B E-Commerce Sales %24 Increased emphasis to reduce operational costs Rising customer demand to procure products online Global B2B E-commerce Sales - 2020 China 31% US 20% $6.7 trillion (2020) Others 49% US B2B E-commerce Market - 2020 2x the B2C E-commerce Market $480 Bn. $1,130 Bn. B2C in 2020 B2B in 2020 US B2B E-commerce Market Forecast CAGR: 7.7% $780B.. $1,130Bn. 2015 2020F Top 10 US B2B E-commerce Companies - 2015 These companies account for 25% of the overall market. Sales Growth Rate Chevron ExxonMobil. GM 43.5 9% 22.3 9% 21.9 20% 18.1 16% ExxonMobil Corp. Chevron Corp. Apple Inc. General Motors Co. PHILLIPS 66 Ford VALERO 17.6 9% 16.7 16% 16.6 12% 14.3 9% Phillips 66 Ford GE Valero Energy Corp. US. DELL FOODS KEEPING KITCHENS COOKING. 14.0 7.7% 13.8 31.4% Dell Inc. US Foods Inc. Source: E-marketer, Trellis, and Forbes Values in USD billion Growth rate measured between 2014 - 2015 Drivers & Challenges Growth Drivers Key Challenges Improving Product Mobility Complexity Ongoing development to improve the supply | Consumers who prefer to buy products or strategies is expected to simplify the product materials online have in-depth knowledge mobility, thereby increasing demand for online about the product and its features. For purchases. The mobility feature would enable the instance, B2B purchasers conduct an average of companies (buyers) to purchase goods anywhere 12 searches before interacting with a particular | and anytime. company's website. | Increasing Customization Issues Related to Delivering Large Orders | Offering customized online solutions to buyers It is challenging for sellers to handle B2B orders makes it easier for them to manage services online; quickly and efficiently when it comes to large moreover, the usage of this technique is expected size and scale orders. Furthermore, sellers are to boost the demand for B2Be-commerce market. required to arrange specialist freight services to manage large orders that further adds up Growth in Petroleum & Pharmaceuticals Industry | considerable expenses. B2B e-commerce market is projected to expand at a faster rate primarily due to increasing demand for Lack of Custom-built Pricing Mechanism petroleum products, as well as pharmaceuticals | Every single B2B customer is treated in a similar and druggist sundries. These are the most popular manner, and pricing remains same for the first end segments in the US B2B e-commerce industry, time buyer, as well as repeat customers. This and are expected account for around 20% of might have an adverse effect on customers total sales by 2020. planning to have long term procurement partnerships with the seller. O: ARANCA VIEW The B2B e-commerce market is predicted to grow in a faster manner as the back-end infrastructure has made it easier for B2B companies to build convenient platforms to meet consumer demands. Moreover, the increasing focus on improving the customi- zation factor is expected to boost demand for the B2B e-commerce market. Furthermore, the presence of B2C e-commerce giants, such as Alibaba and Amazon are expected to change consumer percep- tion for B2Be-commerce. Several B2B companies are opting for e-commerce platforms and adopting current industry best practices, which is expected to create ripples in the industry's future. Haranca Compiled by: Vinit Gangar br ©2017 Aranca, All Rights Reserved. www.aranca.com If you wish to reproduce or use this infographic in any format, please email us at [email protected] BUSINESS RESEARCH INVESTMENT FIXED INCOME VALUATION TECHNOLOGY PROCUREMENT & TRANSACTION QUANTITATIVE & RESEARCH & RESEARCH & ADVISORY INTELLIGENCE & IP SUPPLY CHAIN ADVISORY RESEARCH ADVISORY ANALYTICS ANALYTICS RESEARCH INTELLIGENCE