E-Commerce for B2B Expected to Reach $1.1 Trillion By 2020
Posted on: June 30, 2015 by Westpro Media Inc.
In a recent report from Forrester Research titled “U.S. B2B E-Commerce Forecast: 2015 To 2020”, it is projected that B2B e-commerce will increase from $780 billion this year to an estimated $1.1 trillion by the year 2020. Currently, B2B e-commerce sales represents 9.3% of all B2B sales, but is expected to reach 12.1% within the next five years. The increase is driven primarily by buyers' greater desire to purchase online paired with advancements in the technology of buying online.
Forrester has found that 74% of B2B buyers are already researching at least half of their purchases online, and at least 30% of them are completing half of their work purchases online. Each year, that number increases substantially, and is forecasted to jump to 56% by 2017.
Where e-commerce revenue is concerned, the top industries today are pharmaceutical and petroleum, but the electronics industry is the fastest growing. Engineers, who tend to be early adopters of technology, are the primary driver of this growth.
Business owners large and small are taking advantage of these technologies to enjoy the lower cost of supporting orders that come through e-commerce. If your business is not currently set up to capitalize on this growing channel of doing business, you may lose to your competitor who is.