A clear supply chain network will be built for B2B ecommerce portals in 2016: Brijesh Agrawal, founder of Tolexo predicts
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Business-to-Business is fast becoming the next ‘must-invest’ sector in India and 2015 has been the year. With Venture Capitalists pouring in millions of money into “2015 is the year when B2B became a sector on its own,” said Swati Gupta, founder of
Another portal in the space
“The adoption rate has been phenomenal,” said
These portals have also attracted huge funding. Industrybuying raised USD 9 million in Series B
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The numbers have proved well why this sector is going to be the ‘next big thing’ in the start-ups revolution. But what changed in 2015 that made it so huge an industry?
Drivers
“What existed earlier was the classified platform where typically businesses would find out with whom they want to do businesses with. But with these portals, businesses can sell and buy instantly, without having to negotiate as the price and availability of the product are there on the site. Hence the overall buying decision becomes a lot easier and quicker for them to make. These portals not only allow you to find the right product and the right supplier, it also ensures the product is picked up from the supplier and delivered to the doorstep,” said Brijesh.
He further said another added advantage was that the products can be delivered in small cities too.
Tolexo has managed to penetrate into the deepest parts of the nation, with customers from remote locations on its list, from among more than 900 cities, with over 65% of this traction coming from Tier 2, 3 & 4 cities.
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Challenges
The sector mainly faces four main challenges,
1. Taxation
Different states have different taxation for different products. Dealing with that is a bit of a problem as the supplier can come from any city for that matter.
2. Adaptability
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“B2B has never been exposed to ecommerce before, both from the seller side and the buyer side. So, the nuances that come along a typical B2B ecommerce business are something that we are experiencing for the first time,” said Brijesh.
3. Supply chain network
The third challenge is with the logistics infrastructure itself. The major traction that comes from Tier 2,3 and 4 cities. The existing supply chain network is not predictable in these areas.
“So delivering within a specified timeframe is big challenge,” said Swati.
4. Awareness
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Also, lack of awareness is something that cause lack of trust between the supplier and the customer.
Some predictions for 2016
A clear supply chain network would be built for
Swati predicts her platform will witness a growth of 3x in the next six months.
(Image credits: Indiatimes)
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