B2B Market Place
With the advent of new technology and sky rocketing business needs B2B market place is gaining momentum like never before. It’s been predicted by industrialist and experts, that by 2020 India’s B2B industry will be worth of RS.45crore.
B2B market place governance model and regulation is in tremendous upward trend since the users are manifold increase Year on Year. India’s progressing B2B market place/ecommerce industry is having a large untapped potential of growth percentage thus results
in huge opportunity for the companies who want to enter this market.
Gone are the days are only big giants like (Alibaba, Indian Mart, Trade India) occupying the major market share in B2B industry. Now even start ups in this space gaining its own momentum to cater the growth. License support, friendly regulations, full governance
model are one of the few factors that catapult the interest to start ups to enter in the space.
Stats & Facts about B2B Market:
1) In 2014, B2B market place in India was valued at $350 billion in 2104. Due to its adverse growth potential, industrialist have estimated a reach of $700 billion by 2010.
2) E-Commerce evangelist predicted that B2B e-commerce industry in India grow by 2.5 times to reach the predicted target of RS.45 crore by 2020.
3) Forrester made a comprehensive study and predicts that B2B e-commerce market will be worth $1.1T. At the same time, B2C market will be worth at $480.
When the B2B market place is growing at a faster pace, many B2B companies like Alibaba.com, Indiamart.com, Tolexo.com, Indiatrade.com. etc., should gain their own competitive advantage when compared to their peers to mark their success in the industry. Startups
in this category like JustBylive.com, Tolexo.com, Bizongo.in etc.. are trying to elbow out their peers by a robust, scalable & secure market place for their key stakeholders ( Buyers & Sellers).Hence, escrow comes into picture.
Escrow Payment Services:
Escrow involves an independent trusted 3rd Party, holding funds on behalf of transacting parties to ensure that such funds are released only when certain conditions are satisfied. It provides protection to both Buyers and Sellers
Typically escrow is a legal arrangement that is primarily focus on protecting the interest of both buyer and sellers involved in a particular transaction.
When the stiff competition arose day by day among the online market players, there are various parameters in which customers choose the market place one over the other.
- Buyers and sellers protection
- Safe & secure payments
How it works:
The whole process of escrow is facilitated by a secure third party escrow payment service provider who takes cares of payment and delivery of goods or services.
1) A buyer will log into online market place (Quikr, eBay, Olx etc.) and choose to buy the product or services.
2) Buyer needs to agree various terms and conditions if the user opted the payment option through escrow.
3) Once the buyer agrees the terms & conditions, payment terms & fees, user will makes the payment to escrow payment provided by third party service provider
4) Until the sales order is sent by the buyer, E-escrow will hold the funds
5) Third party escrow service provider will sent the notifications to the seller once the payment has been received by them and the courier will be dispatch from their end to the buyer
6) Once the goods or services is received by the buyer and they feel happy about it, they can intimate the online third party escrow service provider to release the funds to the seller
7) If the buyer dosen't respond on the agreed days & time or the inspection period runs out, the fund will automatically credit back into the escrow account and then it will redirect to the seller account with some deduction in charges
8) If the buyer is not happy with the product delivered, then they have the option to return the product to the seller
9) Some third party online escrow payment services are providing the option like partial payment release in case of high volume transactions like real estate’s transaction’s, property developers, etc.
Each and every steps in Escrow process, will be intimated to the user to know exactly where the parties in the transaction process and if there is action required by either of the two parties. Having this access to step-by-step timeline, no matter whether
it’s a buyer or a seller, they will never stuck wondering what to do next or where are they in the transaction. All the transaction happens through escrow is fully regulated, monitored by experienced and knowledgeable escrow officers.
In US, standalone government agencies or government approved private agencies, perform due diligence and regular audits of independently licensed escrow companies. Audit examinations are done in order to protect the stakeholder’s funds, to determine secure
and safety, compliance with escrow rules and guidelines.
All the E-Commerce companies who involved in facilitating the buying and selling of high volume merchandise transactions in US and UK (Popular use cases - Motor Vehicles, Jewelers, Website creation, Real Estates etc.… ) should bring the unanimous quotation
called “Trust & Transparency”. By introducing Escrow into their website or app, will create more competitive advantage when compare to their peers in the industry. In India, even though scope for the same use cases are little low, but still the market for
low volume transactions are huge. Companies who jump into this bandwagon should see the customer paint Point and address it, will definitely gain its own share.