Sales On the Government's B2B Marketplace Double in Fiscal 2023

According to business statistics, “the global business-to-business e-commerce market size was estimated at USD 18,665.95 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 18.2% from 2024 to 2030. Rapid technology improvements are crucial for the expansion of the B2B e-commerce market.”

Firstly, what is a B2B marketplace?

It is an online marketing platform that facilitates easy connection and transactions between customers and the suppliers of a particular product or service.

It serves as a platform that makes it easy for organizations to conduct their respective activities of buying and selling, especially those that are carried out in large quantities and tailored for larger audiences.

Compared to a few years back, the marketplace is now gaining more recognition and recording more sales. Keep reading this? article to check out the statistics reports from the GSA Fiscal 2023 reports.

The Statistics Report

The US General Services Administration, (GSA), evaluated that the Federal B2B Marketplace is taking its final shape. This evaluation was based on the government purchases under $10,000.

It was also stated that the GSA awarded new contracts to eight commercial online platforms as part of a program to help federal agencies buy, get, benefit from and analyze easy spending online.

The eight GSA B2B marketplace providers are;

1. Amazon Business
2. E-procurement Services
3. Fisher Scientific
4. Grainger
5. Noble Supply
6. Pacific Ink
7. Social Glass
8. Staples

On the bright side, there's new released statistics from the federal government fiscal year to show how the new marketplace is growing.

According to the statistics report;

• Total spending doubled to $80 million in fiscal 2023 from $40.3 million in fiscal 2022.
• The number of total orders grew 103% year over year to 305,000 from 150,000.
• Total third-party spending. Total spending increased 109%, to $66.7 million in fiscal 2023 from $31.9 million in fiscal 2022.
• Small-business spending grew 246%, to $24.9 million in fiscal 2023 from $7.2 million in fiscal 2022.
• 52% of all buyers are repeat customers.
• There are 5,400 registered users.
• The average order size is $250 to $350.

The GSA commercial platform manager, Keil Todd saw these newly released statistics as a great turning point and said, “this is a pivotal turning point in the commercial platforms available, including several small business awardees.”?

The B2B marketplace platform has been estimated yet again, to grow from $1.7Trillion in 2021 to exceed $2 Trillion in 2023 and $3 Trillion by 2027.

Conclusion

Due to innovations, larger marketplace, larger audiences. The B2B marketplace keeps growing and this is just the early stage of this growth.

References: https://www.digitalcommerce360.com/2024/04/11/government-b2b-marketplace-sales-fiscal-2023/ ?

Thank you for reading!

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