Professional Documents
Culture Documents
Digital B2B Outlook: More Information
Digital B2B Outlook: More Information
Outlook
2023
More information
Facebook
Sell On Alibaba.com
Instagram
@sellonalibaba
LinkedIn
@Sell On Alibaba.com
Introduction
About Alibaba.com
Alibaba.com is one of the largest wholesale ecommerce marketplaces
in the world. Since 1999, small to medium-sized businesses (SMBs)
have connected with a suite of tools built just for business-to-business
(B2B) trade.
Welcome Letter
Greetings!
In the blink of an eye, 2022 has come to a line. This requires finding a sustainable,
close, making way for new opportunities and cost-effective solution to avoid overspending.
greater success in 2023.
The reason this is more important than ever is
If we’ve learned anything in the past few that the unpredictability of the global
years, it is that change is the only constant. situation can cause instability in your income.
Businesses have been forced to adapt in the By reducing spending, businesses are able to
face of back-to-back global crises, and stay afloat through temporary decreases in
overcoming these hurdles has required revenue.
flexibility, hard work, and great resilience. By
observing the businesses that have proven On behalf of Alibaba.com, I wish you a
successful in the face of adversity, we have prosperous New Year. Our organization and
discovered several lessons that B2B platform are here to help you continue to do
businesses can take with them into the new great things in the realm of global trade. We
year. are confident that with the right strategy and
hard work, your business will continue to
The first lesson is that a stable B2B overcome the challenges that come your way.
e-commerce platform is worth its weight in
gold. As e-commerce grows, finding a
destination to sell and source goods is very
important. Ensuring that your chosen
marketplace will remain stable as your needs
grow and evolve is even more important.
i. Cost-efficiency 09
v. Digitalization 17
vi. Conclusion 19
v. Conclusion 31
Part
01
Global trends in the
post-pandemic era
In 2022, companies worldwide experienced various trade shocks, ranging from global conflict to
volatile energy prices and soaring inflation. Thankfully, the ability to digitally reach customers locally
and globally without stretching operating budgets helped provide an important buffer.
This year, companies worldwide experienced various trade shocks, ranging from global conflict to volatile
energy prices and soaring inflation. Thankfully, the ability to digitally reach customers locally and
globally without stretching operating budgets helped provide an important buffer.
But how will digital selling change in 2023? What can B2B sellers expect from the competition? By how
much will buyer expectations change in the coming year? Here’s a rundown of the key digital export
trends to look out for in 2023.
Unlike traditional export methods that leverage physical selling channels like
international conferences, trade expos, or local trade contacts in foreign countries,
digital export has several advantages. Because it happens through electronic
platforms, it reduces the expense and logistical challenge of traditional exports.
For instance, you can meet thousands of buyers on a B2B marketplace like
Alibaba.com without needing to source contacts individually. In addition, digital
export through such a marketplace also offers logistical advantages as it provides a
single platform where you can coordinate marketing, negotiations, sales, and
delivery.
Consequently, if you’re new to online selling, it’s worth exploring what digital exports
can do for your business. As you’ll see in the next section, digital trade has been a
lifesaver for many companies over the past three years.
As a result, the defining picture of the year for global trade would be clogged ports
filled with ships unable to pick up or drop off overdue cargo, record-high shipping
costs, and increased energy prices. Despite these roadblocks, international trade
continued to enjoy a resurgence, posting a record world trade value of $5.6 trillion by
Q3 2021.2 During the same period, e-commerce sales grew by 11%, continuing the
impressive trend set in 2020.3
2022 has yet to maintain the trade gains of the previous year, however. While global
think tanks like the World Bank had predicted slower global economic and trade
growth in 2022, other factors conspired to make actual performance for the year
worse. Multi-year high inflation levels, the damaging Russia-Ukraine war, continuing
COVID-19 outbreaks in Asia, and a spate of global interest rate hikes all contributed
to worse trade performance during the year.
According to the World Trade Organization (WTO), world trade will lose momentum
this year due to these shocks. While global merchandise trade volumes are expected
to grow by 3.5% in 2022, those figures will likely fall significantly to 1% in 2023. 4
Inflation is still a concern, with energy prices up 78% compared to last year and food
prices up by 11%, and there is no slowdown currently in sight.4
Consequently, it makes sense for concerned sellers to pursue means to manage their
risk and reduce exposure to the effects of an increasingly uncertain global economy.
Digitalization and a shift to online selling can help cushion these effects and
potentially provide a platform for growth.
However, companies that adopt digital transformation in their operations can unlock
several potential benefits, including possibilities to:
Reduce business risk: Many companies face dramatically increased risk due to
today’s business environment. For instance, operational risk from an inability to
find customers and dispose of inventory was a threat for many MSMEs during the
pandemic. Going digital helped many companies combat this risk, as they could
access selling opportunities while their physical locations were closed.
Reach more customers: Clearly, digital export presents far more opportunities to
find, connect with, and convert more buyers. With the nearly unlimited
possibilities of digital trade, small companies have few limitations to the range
and quality of prospects they can access. And when they combine this advantage
with great marketing on a helpful platform, they can find more high-quality leads
that ultimately convert into a sale.
Boost company profits: Digital transformation also helps unlock greater profits
and trade presence. For instance, one study found that 85% of companies
implementing digital processes acquired greater market share.8 They were also
able to increase company value by 25%.7
Being up to date on these trends, and understanding their underlying data, will be
crucial to business success in 2023. Let’s dive in.
1. Digital migration
We’ve discussed how more companies have transitioned to digital selling
since 2020. This trend is set to continue in 2023. According to data from the
OECD, 70% of small companies surveyed said the impact of COVID-19 drove
70%
them to make greater investments in digital technologies.6 of small companies
With the enduring shocks of the pandemic, more businesses will go digital. surveyed said the
The relative certainty of digital selling will be just what many companies impact of COVID-19
need to keep operations ticking over in the coming year.
drove them to make
One implication of this trend is that B2B online sellers will likely see greater greater investments
competition next year. Consequently, if your business is not yet digital, you in digital
should plan to transition by next year.
technologies.
More small companies will find their way online in 2023. But many of the
newcomers will look to make a gradual entry into the digital selling space. The
OECD suggests that new digital market entrants will prioritize electronic
marketing and administrative functions.
93%
Digital marketing is already a big draw for companies, especially considering
of all interactions on
that 93% of all interactions on the internet happen through search engines.9 the internet happen
With digital marketing, new entrants can immediately start working to gain a through search
share of those interactions.
engines.
There’s also likely to be a rise in companies using digital tools for
administrative purposes. For example, popular products like Notion, Evernote,
and Canva are options businesses can employ for organizing and clerical tasks.
3. Data-led marketing
Part of this capability arises from better tools that let companies access and exploit
broader data types. There’s a greater variety of data that enables companies to plan,
test, and launch successful marketing campaigns. Companies can also apply better
data to assess and learn from marketing campaigns.
4. Personalization
Other ways customers seek personalization include how they are offered services
and products. For instance, a customer who bought from you expects you to know
their previous purchases and leverage that information during a repeat purchase.
People typically spend between six and seven hours on the internet. According to
statistics, the average person spends roughly 40% of their waking life accessing an
What’s next?
internet-enabled device or service. As a result, offering digital
content to users may
But those statistics have fallen recently. Average time spent online fell to 6.47 hours become trickier for
from 6.53 hours in Q4 2021.10 While this drop isn’t significant, it is an indicator of a businesses. There’s now a
likely peak in the overall time that people spend using the internet. greater need to ensure
they’re providing enduring
value. Otherwise, they
6. Video marketing may find users leaving
their content for other
Video is a compelling medium due to its ability to engage by showing. So, it’s digital consumables.
unsurprising that video marketing continues to gain ground in digital export.
Platforms like Alibaba.com incorporate video into their marketing channels to help
foster greater engagement with buyers.
While short-form videos are currently the most popular, there is scope for growth in
the consumption of long-form and live-streamed videos. Most important is ensuring
that prospects see images that align with their buying intentions.
7. Real-time messaging
Finally, along with growing buyer preference for rapid service, real-time messaging is
emerging as a key trend for B2B digital exports. Buyers don’t want to wait hours or
days to receive responses from B2B sellers.
References:
1
https://www.morningfuture.com/en/2021/05/26/export-e-commerce-pandemic/
2
https://unctad.org/news/global-trade-goods-hits-all-time-quarterly-high-56-trillion
3
https://www.salesforce.com/resources/research-reports/shopping-index/
4
https://www.wto.org/english/news_e/pres22_e/pr909_e.htm
5
https://www.oecd.org/economic-outlook/september-2022/
6
https://www.oecd.org/industry/smes/PH-SME-Digitalisation-final.pdf
7
https://www.mti.gov.sg/-/media/MTI/Resources/Economic-Survey-of-Singapore/2019/Economic-Survey-of-Singapore-First-Quarter-2019/FA2_1Q19.pdf
8
https://www.sap.com/dmc/exp/4-ways-leaders-set-themselves-apart/index.html
9
https://www.imforza.com/blog/8-seo-stats-that-are-hard-to-ignore/
10
https://datareportal.com/reports/looking-ahead-to-what-2023-holds
Alibaba.com is
tailor-made for small
businesses to reach
out to new markets
Unlike Chinese suppliers on the platform, the majority of GGS suppliers
on Alibaba.com are manufacturers who produce their own products,
with nearly 40% of suppliers having annual revenue of less than $
100k. It is a more economical channel for small business owners who
don't possess the experience or knowledge of exporting or simply
cannot afford the cost of business travel and offline tradeshows.
100%
0.232 0.207
0.245
80% 0.379 80%
0.244
0.302
60% 60%
0.357
0.466 0.549
20% 20% 0.398
0.156
0% 0%
GGS CGS GGS CGS
In the new year, we will put more money and investment into
Alibaba.com, because the Alibaba.com platform is the most
economical way to market now. And traditional marketing is
too much expensive for us.
Alibaba.com is a
beginner e-commerce
choice for many B2B
sellers
According to our survey, 60% of suppliers here doesn't have previous
E-commerce experience before joining Alibaba.com. This means, if you
have some e-commerce operational skills before, you are already in a
better position than many existing sellers. Moreover, it shows that
sellers who spend more time studying the platform rules or hire an
account manager/exporting manager dedicated to the platform, are
more likely to have better results from the platform.
Mr. Vijayan S
CEO
HYPERCRYSTALS
Usman Asif
Founder
Moytei Sports
Alibaba.com is ideal
for sellers who want to
tap into new markets
for potential buyers
Alibaba.com is ideal for sellers to reach out to customers that they are
unable to reach in traditional channels, such as business travel and
tradeshows. 42% of sellers use Alibaba.com as their primary source of
business with 60% aiming to break into new markets.
Others 1%
Manufacturing Trading
Manufacturer and trading company
combined
Gianluca Vincolato
Export Manager
Ursini srl
Wen Wong
Founder
King O King Jewellery Co. Limited
Alibaba.com puts
great importance on
its channel service,
and you should make
the most of it
Customer service is one of the highest-rating aspects according to the
user experience survey. Sellers can seek exclusive technical and
operational support from account managers on Alibaba.com, which
effectively help them grow their business. Around 80% of sellers receive
direct help from account managers. 30% of them contacted their
account managers at least once a month.
82%
68%
64%
57% 57%
49%
Abuzar Ikram
Marketer
M/S INDIAN DECOR HANDICRAFTS
Angela H. Brown
Founder & CEO
D' Serv Healthy Hair Care
Toyiah Marquis
Founder
Patch Party Club
Alibaba.com provides
to one of the most
helpful tool for small
businesses to get
through the Covid-19
pandemic
Over 55% of small business owners saw their revenue drop during the
pandemic, and 20% reported that they shut down altogether.
However, almost 15% of respondents report that their businesses
stayed the same, and 10% of respondents saw their business rise
instead of fall. Among those who succeeded, utilizing e-commerce was
the top strategy for surviving the pandemic.
55%
20%
15%
10%
Wen Wong
Founder
King O King Jewellery Co. Limited
Conclusion:
Why you should choose
Alibaba.com
What kind of sellers can Sellers with good negotiation skills, outstanding country-of-origin effects, and low
succeed on Alibaba.com? Minimum Order Quantity (MOQ) are more likely to succeed on Alibaba.com.
For sellers who operate by third-party agents, around 1 to 10 orders can be secured
in the first year.
Which sectors have the Apparel, Home & Garden, Beauty & Personal care, and Food & Beverage are
most growth potential? large-scale and high value sectors for suppliers out of China on Alibaba.com. The
Sports & Entertainment sector also witnessed quick growth in scale in recent years.
Among them, Food & Beverage sector is in the “blue ocean”, while Apparel, Home &
Garden, beauty & personal care sectors are in the “red ocean”. That means sellers
have fewer competitors and more opportunities to increase their sales in the Food &
Beverage sector.
It is estimated that Food & Beverage sector has buyers with a purchasing power of
U.S. $750 million. The rapid growth of the food & beverage sector is mainly
contributed by alcohol, chocolate and soft drink products. Coffee also shows huge
potential, but it depends more on the quality of the products.
*Source: Industry Opportunity Research on Alibaba.com
Sellers can seek exclusive technical and operational support from account managers
on Alibaba.com, which effectively help them grow their business. Around 80% of
sellers receive direct help from account managers. 30% of them contacted their
account managers once a month. Currently, most sellers are satisfied with the
services offered by account managers.
The critical time to E-commerce has emerged as the main force of Southeast Asia's digital economic
transform digitally growth which Vietnam has a remarkable potential to develop. The growth rate of
e-commerce in the period 2013 – 2019 is always high, over 20 %/year. As a result,
from a low starting point of $2.2 billion in 2013, the size of the e-commerce market
has grown to about $10.08 billion in 2019. According to the 2019 e-Conomy SEA
Report of Google and Temasek, The Compound Average Growth Rate (CAGR) for
2015-2025 is 49%, and the market size is expected to reach $23 billion by 2025.
In an attempt to better understand the implications of operating Micro, Small, and Medium Enterprises
(MSMEs) for over two years of the pandemic, Alibaba.com put out a survey to learn more about how
different global suppliers navigated the pandemic.
After the pandemic, do you believe that Alibaba.com is still valuable to small business
owners?
How did the pandemic impact your trading business, being being a small business
owner in recent years in recent years?
In terms of improving business environments, what [do you] most expect from other
sectors of society?
The survey also gathered data on company size, location, and business type to better understand
who the respondents are.
Our main goal with the survey was to understand the effects of the pandemic on global suppliers
and assess how they navigated the trials and tribulations of the last two years. We also wanted to
determine how important B2B e-commerce was for small businesses during this time.
Since history tends to repeat itself, documenting how different types and sizes of businesses fared
through this global crisis will better equip businesses to navigate crises of similar magnitude in the
future.
In this report, we will discuss the findings of the Alibaba.com small business survey for global suppliers.
We will review how the pandemic affected small businesses and how these businesses survived the
pandemic. We will also discuss the importance of e-commerce marketplace to small businesses after the
pandemic and what small business owners expect for future support.
Asia was by far the most prevalent location of the suppliers who filled out the survey.
The most common countries represented by respondents include India, Pakistan,
Turkey, Japan, Indonesia, Italy, Canada, Malaysia, Vietnam, and the United States.
There was representation from every inhabited continent of the world.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
S.
K.
a
ly
n
ce
il
da
ico
y
nd
y
an
sia
ia
ia
ca
az
di
pa
ke
an
Ita
U.
re
U.
s
l
na
an
na
ra
la
ist
ri
ex
In
ne
ay
Br
r
Ko
Ja
rm
Af
Tu
ai
Fr
st
et
k
Ca
M
al
do
Pa
Au
Th
Ge
Vi
h
h
M
ut
ut
In
So
So
My trading business went higher than before My trading business was almost the same compared with years ago
My trading business dropped, but less that 50% My trading business dropped over 50%
Note: According to the OECD classification, surveyed enterprises with less than 250 employees are considered small businesses; possible bias
cannot be ruled out due to the small sample size in some countries.
Respondents were able to indicate the size of their organization based on the
number of employees that they have. They had the option to choose 0-10, 10-50,
50-250, or 250+. The vast majority of respondents, or precisely 95%, were small
businesses with less than 250 employees, and 80% of the respondents had less than
50 employees.
Manufacturers take the highest percentage of survey responses, accounting for more
than 60%. The other 40% of respondents were trading companies, distributors, and
entrepreneurs. Trading companies accounted for 17.5% of total respondents, and
distributors and entrepreneurs accounted for 7.8% and 14%, respectively.
However, the global restrictions and disruption did spark some widespread shifts
that were felt around the world. Global demands shifted, lockdowns sparked
shortages, and e-commerce became a major in B2B trade.
Businesses of all types and sizes were forced to quickly adjust their operations to
navigate things that were thrown their way. Many had to pivot within their industry in
order to survive. For many businesses, the issues caused by the pandemic were
simply too much.
In general, over 55% of respondents saw their revenue drop, and 20% report that they
shut down altogether. However, almost 15% of respondents report that their
businesses stayed the same, and 10% of respondents saw their business rise
instead of fall.
Let’s take a closer look at how businesses with different sizes, types, and locations
fared through the pandemic.
100%
11% 10% 9%
17%
12% 13% 13%
80%
22%
17%
29% 27%
60%
22%
35%
40%
32%
32%
26%
20%
25% 19%
16% 13%
0%
0-10 10-50 50-250 250+
My trading business went higher than before My trading business was almost the same compared with years ago
My trading business dropped, but less that 50% My trading business dropped over 50%
In addition to lower shutdown rates, 17% of respondents with more than 250
employees reported that the pandemic left their businesses better off than before.
This is nearly double the success of businesses with under 10 employees. Only about
9.8% of respondents in the latter category reported that their businesses were better
off than before the pandemic.
From this, we can deduce that larger businesses with more employees were better
off throughout the pandemic. This is not to say that larger B2B companies went
unharmed as a whole, but they were more likely to survive the pandemic than their
smaller counterparts.
Based on the results of the survey, trading companies had the lowest percent of
shutdowns at 16%, and entrepreneurs had the highest at 30%. Manufacturers and
distributors fell somewhere in between with 19% and 22% of respondents shutting
down, respectively.
100%
9% 13% 10%
16%
14% 7%
80% 13%
19% 14%
26% 21%
60% 14%
39%
40%
32% 36% 29%
20%
30%
19% 16% 22%
0%
Manufacturer Trading company Distributor Entrepreneur
My trading business went higher than before My trading business was almost the same compared with years ago
My trading business dropped, but less that 50% My trading business dropped over 50%
Steps Taken to Keep Business Going During COVID-19 by Firms of Different Sizes
100% 4%
9% 8%
90% 17%
10% 7% 15%
80% 8% 15%
12%
17%
70% 11%
60%
38% 37% 20%
50% 32%
40%
30%
20% 43%
32% 32% 33%
10%
0%
0-10 10-50 50-250 250+
Seek support from local governments or institutes (apply for subsidies, participate in government schemes)
According to the survey responses, utilizing e-commerce was the top strategy for
surviving the pandemic. Expanding sales channels came in as a close second.
Let’s take a closer look at how each of these survival mechanisms looked for small
businesses in the global trading spaces.
Direct-to-consumer (DTC) sales can also play an important role in a sales channel
expansion. As the name suggests, it involves selling directly to consumers with no
Some of the first major restrictions in the early days of the pandemic were restrictions
on travel. Since business people couldn’t travel to meetings, conventions, and trade
shows to carry out deals, as usual, they were forced to rely on digital means.
The rapid growth of B2B e-commerce1 came as a result of the dire need for
digitalization. It allowed businesses to take their operations online. B2B e-commerce
marketplaces, such as Alibaba.com, helped to make this process quite seamless.
3. Controlling finances
There are two ways may possibly increase your profit: cut your expenses or make
more sales. Since many businesses struggled to even maintain sales during the
pandemic, cutting expenses became the only option.
Businesses were forced to assess what’s most important to their business operations
and cut costs accordingly. Some ways that businesses cut costs2 to control their
finances included:
Closing offices
Laying off employees
Optimizing operations
Severing contracts with freelancers
Unsubscribing from software and services
For some businesses, these actions were permanent, and for others, it was
temporary. Most did what they had to do to survive.
4. Investing in R&D
Sticking out amongst the competition has never been more important. Many
businesses have invested in research and development (R&D) in order to keep up
with and surpass the competition. By investing in R&D, businesses can improve their
products, optimize their process, and expand their services.
Investing in R&D will have different returns in different situations. For example,
investing in optimizing your processes can raise your bottom line by saving money.
On the other hand, investing in product development can provide the leverage you
need to raise your prices or appeal to a larger audience.
The United States, for example, had several financial aid programs for businesses
throughout the country. The Small Business Association, which is an organization
backed by the U.S. government, rolled out an initiative called Payroll Protection
Program (PPP). It was a forgivable business loan to help businesses pay their
employees.
There were a ton of similar programs offering small business aid across the EU, as
well. Each institution and organization structured its emergency funding a little
differently.
Alibaba.com has served as a valuable resource to many businesses over the course
of the pandemic. It has helped businesses move their operations online in order to
stay afloat during the pandemic. Not only does Alibaba.com serve as an e-commerce
marketplace, but it facilitates trade in a way that improves accessibility for businesses
around the world.
Alibaba.com hosts virtual tradeshows and other digital sales events to help
businesses come together to form professional relationships. Plus, e-commerce
platform offers smart communication tools that auto-translate conversations which
makes it possible to overcome language barriers and connect with more potential
trade partners.
These and other tools from Alibaba.com have helped businesses break into the
digital space and survive the pandemic.
Let’s take some time to look closer at the importance of e-commerce marketplace for
small businesses by company size and type.
Among the companies with 50 to 250 employees, 51.7% responded that B2B
e-commerce platform like Alibaba.com is very important, 32.5% said that it was
somewhat important, 10.7% reported that it is no longer important, and 8% report
that it doesn’t matter.
However, about half of the respondents with more than 250 employees answered
that B2B marketplace like Alibaba.com remained important, and the other half said
that Alibaba.com was still relevant to some degree. Only 1 of the 45 respondents with
250+ employees said that e-commerce marketplace was no longer important.
From this data, we can also see that the majority of respondents see value in
continuing to use B2B e-commerce like Alibaba.com to support their businesses
post-pandemic. Since nearly 98% of businesses with over 250 employees responded
that Alibaba.com will still be at least somewhat relevant after the pandemic, we also
see that the platform is considerably more important amongst larger businesses.
100% 3% 4% 2%
8% 2%
7%
90% 12% 11%
80%
29%
70% 35% 32% 48%
60%
50%
40%
10%
0%
0-10 10-50 50-250 250+
40%
35%
30%
25%
20% 39.69%
15%
10% 19.26%
16.44%
12.53% 12.08%
5%
0%
Platform companies Governments or Institutes help Industries can assist Others
offer favoured institutes roll out connect more in resolving the
policies to improve new export stimulus business problems of supply
efficiency of opportunities chains or human
operating resources
Note: Based on the OECD criteria, small businesses are enterprises with less than 250 employees.
Many small businesses turned to external resources in order to make it through the
pandemic. Governments and other major organizations around the world worked
hard to accommodate businesses to help them stay afloat.
The various types of aid helped to shape the business landscape to create more
favorable conditions for B2B traders.
Among all of the respondents, the most popular expectation for future support is that
platforms, such as Alibaba.com, continue to offer accommodations and policies to
improve the efficiency of business operations. In fact, nearly half of the respondents
had this opinion.
The other half of the responses were split almost equally. They stated that their expectations
for future support were focused heavily on government organizations, industry leaders, and
other institutions. The results were proportionate when the respondents were broken down
by size.
These expectations include export stimulus programs from governments and other
institutions, assistance in resolving the problems of supply chains or human resources, and
connection facilitation from institutions to create more business opportunities.
Conclusion
Although the effects of the pandemic are lessening with time and most of the world
is operating as normal, the lessons we’ve learned throughout this global crisis will
stick with businesses for generations to come. Many small businesses have faced
tremendous hardships, but the experience has left them better equipped to navigate
tough situations moving forward.
If one positive has come from this situation, it is the shift towards e-commerce in B2B
trade. With the digitalization of B2B trade comes brand new opportunities for buyers
and sellers from around the world.
Digitalization makes trade more accessible and affordable since businesses can
connect over the internet without having to travel to tradeshows and other events.
Plus, with the support of Alibaba.com, global B2B trade is easier than ever.
References:
1
https://www.bigcommerce.co.uk/articles/B2B-ecommerce/B2B-ecommerce-trends/
2
https://www.abfjournal.com/articles/how-companies-are-cutting-costs-during-the-covid-19-pandemic/