Why B2B e-commerce for your trading business is not reaching its potential

As per a research conducted by Frost and Sullivan, B2B e-commerce sales are potentially valued at to be valued over $6.6 trillion by 2020 globally while B2C is valued to be worth $3.2 trillion. Yet B2B potential is still not fully realized due to pain points that still plague the industry.

1. Lack of trust forces lengthy trade finance processes

Online trading of consumer goods poses a big challenge with the trustworthiness of the participants. Securing money for your goods is either cash in advance, thus exposing the buyer, or via trade finance (generally LCs) which are tedious, time consuming and expensive to process for each transaction.

2. Transaction costs eat up tight margins

Currently the cost of doing business online is anywhere between 5 to 8% or even more on most B2B e-commerce platforms. With high values and low margins this becomes a barrier to entry for most businesses.

3. Lack of operational efficiency with numerous transactions in bulk trade

In our hyper-connected world, global supply chains are spreading across continents and nations. Yet global trade is still very inefficient. Logistics, insurance, inspections, and documentation are mostly manual and complex relying on multiple email communication streams.

Does this mean trading companies need to live with these pain points? Definitely not!

Distichain seeks to leverage on technology to serve as the middleman that will bring to the ecosystem an unparalleled level of vendor matching, automated supply chain where security replace need for trust and relationship building. Trading companies hence can look forward to expounding on the huge potential of their industry.

This is Industry 4.0. This is the future.

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