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Why Did Electronic B2B Marketplaces Fail? [Top 6 Reasons]



B2B marketplace

We are on the edge of the digitalized platform to easily buy A to Z accessories online. This means everything is becoming handy nowadays due to the rapid expansion of e-commerce, even the B2B market.

We all are quite familiar with B2B facts. It is an ordinary matter for western countries and getting fame for Asian countries like Bangladesh.

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However, Bangladesh’s electronic B2B marketplaces are somehow failing for some misunderstandings and misdoings. Before moving on to those reasons, one must acknowledge the main purpose of the B2B marketplace.

Purpose of B2B marketplace:

The core purpose of the B2B marketplace is to promote the products on the global platform. This leads a buyer to increase buying facilities and develop the buyer-seller interaction.

B2B marketplace

The digital version of B2B refers the social media where products are promoted virtually. A couple of platforms like Alibaba, Amazon, Aliexpress, Daraz,, etc., are leading the electronic B2B marketplace in Bangladesh.

The Current Scenario of the B2B market Place in Bangladesh

In Bangladesh, many business people promote their local products worldwide through digital platforms. Being a small nation, Bangladesh is trying to compete in the global trade market through its entrepreneurs.

As the world is getting digitalized in every moment, the businessman can realize the necessity of an electronic B2B marketplace.

Many foreign businesses are trading with the locals through this medium, from which the businessman gets inspiration and starts their platform. Still, the local B2B marketplace is quite uncommon, whereas the foreign business or suppliers uphold a strong position.

Along with, due to lack of proper knowledge and experience, they still lack behind.

Why does the Electronic B2B marketplace fail?

Here, we have figured out the most common reasons for the marketplace failure of B2B e-commerce. They are given below:

Improper Integration:

The tendency of single ownership or joint venture business is quite common in Bangladesh. For this reason, they are freed from many restrictions that a private company has to face. However, this freedom boosts their promotion to any marketplace anywhere.

On the other hand, the emergence of the electronic B2B marketplace somehow gets abandoned due to less integration with people, which eventually delivers little information and little reliability.

Beyond the Price:

The first and foremost thing that B2B offers is a perfect match between buyers and sellers. Along with this, it can effectively commoditize the products by reducing the price to the buyers.

Besides, online matching also provides easy excess apparel, finds the rare electronics, and information about particular products (e.g., quality, capacity, performance, or service).

People of Bangladesh are mostly concerned about pricing rather than anything. They don’t know the value that electronic B2B marketplace gives to people is beyond pricing.


Due to the middlemen like distributors or wholesalers, the e-marketplace cannot rise in Bangladesh. These middlemen have to connect large suppliers with thousands of small businesses, considered uneconomical. As a result, the techno-marketplace is hampering dynamically and dramatically because of small businesses ‘ direct sales reduced cost.

Liquidity concept:

The tendency to rely on auctions of multiple independent marketplaces can be another reason. Suppliers view it as a mechanism where buyers can be motivated to squeeze pricing. The traditional selling model still ranges in Bangladesh, where buyers can compare the quality of products.

This is why many suppliers avoid auctions, which eventually causes a lack of liquidity. This kind of liquidity concept is still missing among the electronic marketplace and can be a valid reason that the B2B marketplace fails.

Control Models:

The B2B marketplace is run by different owners where several decisions are made through mutual bargaining and understanding. However, this is the most critical stage to create a joint decision and strategy.

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For example, several market sites create a base platform for several suppliers. The same products can still be found under different pricing schemes, making the customer not rely fully on the site. This is because suppliers control them only, not the customers.

Revenue Mismanagement:

Like our previous example, they provide different pricing scales of the same product under other suppliers that create huge revenue mismanagement into the marketplace. It is hard to find which one is real and which one is local or duplicate.

Maybe the pricy one includes shipping cost, tax, and vice-versa but that is uncertain and unknown. On the other hand, internal trading tends to be different, and so does the profit from suppliers, which eventually creates a more significant gap in revenue management.

Last Notes

Barriers come when there is a new thing to start. Electronic B2B marketplace is a blessing to Bangladeshi people, but the business field cannot utilize this concept without proper knowledge and communication. However, it can be turned into a great thing if people know why electronic B2B marketplaces failed and avoid failure.

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