With B2B commerce valued at a staggering $20 trillion globally, our latest webinar about B2B marketplaces couldn’t be more timely for eCommerce teams.
In Mastering B2B Marketplaces, Smart Merchandiser’s CEO Teresa Zobrist teamed up with former 3M and Solventum digital commerce leader Ryan Satre to talk about marketplace models, platform management, and the role of AI in eCommerce.
Read our takeaways from the conversation below, and rewatch the webinar here at any time.
Marketplaces vs. the distributor model
Ryan began by explaining how traditional B2B distributors have historically functioned as single-sided models. “Distributors consolidated the informational, the financial, and the physical to the customer,” he noted. These distributors could only sell products they physically stocked, creating inherent limitations in selection and efficiency.
In contrast, marketplaces operate as multi-sided platforms connecting multiple buyers with multiple sellers. As Ryan explained, “Multi-sided platforms can connect multiple buyers to multiple sellers. They typically connect two or more groups, facilitate two or more outcomes, and almost always have two or more revenue streams.”
The advantage? Marketplaces bypass physical requirements like warehousing and inventory management, allowing them to “rapidly expand categories, selection, user tools, and service areas simply by adding new sellers.”
Understanding different marketplace models
Ryan and Teresa highlighted four distinct marketplace models that B2B businesses should understand:
- Open Marketplaces (Amazon, Alibaba, TikTok): Anyone can buy or sell, driven by seller competition and global merchandise value. While highly efficient, these platforms often struggle with quality control and counterfeit issues.
- Member Marketplaces: Subscription-based models focused on specialized segments with negotiated pricing. American Express represents an early version of this “membership has its privileges” approach.
- Closed Marketplaces (Target+, Lyft): Open for buyers but restricted to vetted sellers who maintain verified service standards. These platforms prioritize user experience and customer confidence.
- Segment Marketplaces: Particularly important in B2B, these restrict both buyers and sellers, offering qualified members access to vetted sellers who maintain not just service standards but also regulatory compliance. These often evolve into SaaS platforms.
From account to platform management
Another key topic addressed why traditional account management often fails in digital marketplaces. Ryan pointed out that many B2B companies built their sales organizations for vertically-oriented, traditionally managed channels, which doesn’t translate well to horizontal marketplace models.
“Increasingly, that full discover-to-purchase pathway takes place on a single platform,” Ryan explained. “Search is the zero point, and every point on that pathway is a potential fail point.”
The solution is adopting a platform management mindset. This requires B2B companies to:
- Be present and engaging throughout the customer journey on each platform
- Optimize for search and discovery within marketplaces
- Develop strong content operations that match marketplace navigation
- Embrace the self-service nature of digital platforms
“Think of this as your responsibility to manage that platform like a salesperson,” advised Ryan. “Start with a goal for what you want to achieve for the portfolio on that platform, like you would in any sales territory. Execute, share, learn, repeat.”
Start small and build momentum
For B2B companies intimidated by marketplace complexity, Ryan offered practical advice: start small. “Just pick a small project and get started,” he suggested. “Digital can start with one particular product, one particular line… start somewhere, but start small.”
Teresa agreed, noting how this approach makes complex digital projects more manageable by breaking them “into chewable bites, small bites–do well on that and go to the next one.”
Ryan also emphasized the importance of imperfect action over perfect inaction: “Keep your feet moving. You don’t have to wait until you’re perfect to start doing these things. Evolve yourself and the skills and operations of your organization.”
The role of AI in B2B commerce
The conversation covered major opportunities for AI integration in marketplace strategies. Teresa mentioned how Smart Merchandiser is exploring AI agents that can analyze conversion and abandonment rates to understand product substitution patterns.
Ryan shared an example from 3M’s water filtration products, where semantic AI helped bridge the gap between technical specifications and consumer needs: “We had customers coming in saying ‘I want to mitigate lead in my drinking water.’ Our response as a brand was ‘If that’s what they want, they’re looking for something that’s a 0.01 micron filter rating or greater.’ But does the average person trying to improve their drinking water have that technical capability?”
By using AI to translate between consumer intent and technical specifications, 3M created efficiencies without increasing operational costs.
Omnichannel strategy
Wrapping up, the discussion turned to integrating marketplaces into broader omnichannel strategies. Ryan emphasized that traditional distributors won’t disappear but will exist alongside marketplaces and direct channels.
“Build your tech stack with omnichannel in mind,” he advised. “Content and catalog syndication are going to be key. You really need to be looking for operational efficiencies–pay attention to your net margin, not just your gross margin.”
Then Ryan challenged B2B companies to reconsider their own websites: “If you work for a B2B company, press this question: ‘What do we want our website to do for our business?’ Very often that question gets shrugged off or answered with ‘We just don’t want to disrupt our traditional channel.’ That’s just not sustainable because your customers have that expectation.”
Embracing a marketplace mindset
Success in B2B marketplaces ultimately requires a shift in organizational thinking. As Teresa noted, “This comes with a change of mindset. The reps need to think about ‘Hey, digital is going to help me, not replace me.'”
Ryan agreed, suggesting that eCommerce leaders should “get involved in the compensation plan. You’re in eCommerce, you’re in sales operations. Have that alignment and join those goals.”
As B2B commerce continues its rapid growth toward a projected $36 trillion in the next five years, mastering marketplace strategy has never been more essential.
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Still curious about B2B marketplaces? Watch the full webinar here.
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