Business to Business (b2b) e-commerce is expected to grow by at least 25% this year and be worth R250-billion by the end of the decade.
This is the word from Denny Mo, MD of Commerce24, who says that two years of pandemic-fueled consumer growth in online sales could push business into the value chain this year, opportunities on a local, continental and global stages opening and adoption to omnichannel value chains surging.
Estimates indicate that consumer spend topped R30-billion in online sales in South Africa last year and, by 2025, it is expected that one in four people will shop online.
Global estimates suggest B2B e-commerce to rocket to over $25,6-trillion by 2028.
Forecasts peg the total value of Africa’s B2B market at about R90-trillion by 2025 and South Africa, the largest market, is expected to see R52-trillion of that, Mo says.
“B2B e-commerce should start outperforming consumer platforms by the end of this decade and and match global trend ratios of almost five to one.”
Mo estimates South Africa’s B2B e-commerce market to be worth R250-billion by the end of the decade. “It’s small in comparison to the total trading value, but as technology and access to the same grows across the continent, so too would B2B e-commerce move upward.”
“We also expect B2B commerce in South Africa to outperform global growth trajectories simply because the focus, until now, has been on consumer growth online. But the move to omni-channel transactions, and digitisation at both ends of the value chain, is inevitable.”
Mo adds that the online B2B market has been around for some time but, until now, a handful of large players have steered its course. “This is about to change, too. As online trading and stores become easier to build, it will soon see a host of smaller players enter the market. The power will shift and no longer be determined by corporates.”