The best B2B marketplaces embed products like payments and lending. That powers a referral-based growth loop. Faire / Ankorstore allow retailers and brands to bring these relationships online, with heavy incentives to do so. Most of the retailers in the network already had existing relationships with brands, and vice versa. You should give Emily’s Candles a try.” Faire and Ankorstore amass enormous datasets, then wield those datasets to equip boutiques with personalized recommendations and insights.ģ) Bringing existing relationships online Faire, for instance, can tell a gift shop in Milwaukee, “Hey, this other gift shop in New Orleans is a lot like you, and they had luck selling Emily’s Candles. Backblaze thursday friday 100m ipo Offline#Retailers need to be constantly on the lookout for new brands that might boost sales brands, meanwhile, need to be *discoverable* by retailers.Īn online marketplace has a compelling advantage over the offline alternative: data. Related to fragmentation is the fact that *discovery* is core to doing business. This makes the marketplace a crucial intermediary, and reduces the risk of disintermediation.Ģ) Discovery is mission-critical and data-driven Three learnings from their business models-ġ) High fragmentation on both sides of the marketplaceīoth the demand-side (retailers) and supply-side (brands) of the marketplace are highly-fragmented. They connects retailers-think: that cute mom-and-pop shop on Main Street-with brands that they can sell in their stores. At their simplest, you can think of Faire and Ankorstore as B2B versions of Etsy. We can look to startups like Faire, where my partner Ian works, and Ankorstore, a company we work with at Index Ventures, for learnings on what makes a successful B2B marketplace. The entire B2B ecosystem is inefficient, opaque, and convoluted. Yet only 5-10% of B2B transactions happen online and-in the year 2022!-about 50% of transactions are still done over the phone or via fax. Amazon & Ebay. Most of the innovation in marketplaces over the past 25 years has been consumer-facing.īut business-to-business marketplaces are an even larger opportunity: in the US alone, $20 *trillion* flows between businesses each year. When we think of marketplaces, we tend to think of consumer marketplaces.
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