How B2B marketplaces can build trust, reputation and credibility

Why do we buy from Amazon, eBay and Etsy? Because we trust them. And it’s no different for B2B marketplaces: platforms must build trust, reputation and credibility if they want to succeed.

But B2B marketplaces face unique challenges compared to their consumer counterparts. Think larger transactions, longer sales cycles and far more complex supply chains. That’s why trust plays an even more critical role when fostering long-term relationships between buyers and sellers.

If you don’t believe us, then listen to renowned management guru Stephen Covey in his book, “The Speed of Trust”. Here, he explains that high-trust organisations outperform low-trust ones because trust enables smoother and faster transactions. This principle is particularly relevant to B2B marketplaces, where trust can significantly impact user retention and business growth.

Below, we explore effective strategies for building trust, ensuring credibility and offering comprehensive value in B2B marketplaces. We will also examine the issues of “platform bypass” and how marketplaces can prevent it by offering competitive payment terms and value-added services.

Understanding the role of trust in B2B marketplaces

The foundation of trust in B2B transactions

Unlike B2C marketplaces, transactions on B2B platforms often involve significant financial commitments and long-term relationships. Trust encourages repeat business and customer loyalty, which are crucial for sustained marketplace success.

According to a report by Digital Commerce 360, almost 60% of B2B buyers conducted more than a quarter of their purchases on online marketplaces in 2023​​. This indicates a growing reliance on digital platforms for procurement. However, this shift also brings challenges, as traditional face-to-face interactions are replaced by digital transactions.

In short, ensuring that these digital interactions are trustworthy is critical for marketplaces to succeed.

Insights from “The Speed of Trust”

Stephen Covey’s “The Speed of Trust” outlines key principles that can be directly applied to B2B marketplaces. Covey emphasises that trust is a function of both character and competence. For B2B marketplaces, this means ensuring that all participants — buyers, sellers and the marketplace itself — are reliable, honest and skilled.

Covey identifies four cores of trust: integrity, intent, capabilities and results. These cores can serve as a framework for B2B marketplaces to build and maintain trust.

• Integrity: Ensure that all marketplace participants adhere to high ethical standards.
• Intent: Foster a culture of mutual benefit and transparency.
• Capabilities: Provide the tools and support that buyers and sellers need to succeed.
• Results: Consistently deliver on promises to build a track record of reliability.

These principles highlight the importance of trust as a foundational element in business transactions. By fostering trust, B2B marketplaces can not only enhance user satisfaction but also drive economic performance.

Download The Definitive Guide To B2B eCommerce Buyer Demands 2024

This report reveals that e-commerce is the first port of call for the vast majority of B2B buyers. But despite their propensity for digital procurement channels, 98% of buyers struggle with online checkouts and reporting issues including unsatisfactory user experiences .

Strategies to build and maintain trust

Robust vetting and onboarding processes

One of the most effective ways to build trust is through rigorous vetting and onboarding processes. B2B marketplaces should implement comprehensive background checks and verification procedures to ensure that all participants meet high standards of reliability and credibility. This process not only filters out potentially fraudulent actors but also reassures legitimate users that they are dealing with trustworthy partners.

According to a report by B2B payment solution firm, Hokodo, successful B2B marketplaces must have a world-class vetting and onboarding process. This involves verifying the identity and credibility of all sellers and ensuring that they meet specific quality standards​​. This process builds a foundation of trust and ensures that buyers can transact with confidence.

Moreover, the onboarding process should be seamless and user-friendly. Complex and lengthy onboarding can deter potential users. Therefore, marketplaces should streamline the process, providing clear instructions and support to new users. Automated tools and software can assist in this process, ensuring that onboarding is both efficient and thorough.

Transparent communication and information

Transparency is a cornerstone of trust. Marketplaces must provide clear, accurate and detailed information about products, services, pricing and transaction terms. This includes real-time updates on product availability, transparent shipping costs and clear return policies. By being upfront and honest, marketplaces can build a solid foundation of trust with their users.

A survey from the Hokodo report indicates that 44% of B2B buyers struggle with a lack of transparency in procurement processes, particularly concerning shipping costs and additional fees​​. Addressing these issues by providing transparent and detailed information can significantly enhance trust.

Marketplaces should also encourage open communication between buyers and sellers. Features such as live chat, user reviews and feedback systems can facilitate transparency. Providing a platform where users can share their experiences and feedback helps create a community of trust and reliability.

Avoiding platform bypass (disintermediation)

Offering competitive payment terms

Disintermediation occurs when buyers and sellers bypass the marketplace to conduct transactions directly. One effective way to prevent this is by offering attractive payment terms that users cannot easily replicate outside the platform. Flexible options, such as extended payment terms and instalment plans with a payment solutions firm like Hokodo, can make the marketplace more appealing and convenient for both buyers and sellers.

A key insight from Hokodo’s research is the importance of offering competitive payment terms. The report indicates that 83% of B2B buyers will abandon a purchase if suitable payment terms are not available at checkout​​. By partnering with financial service providers, marketplaces can offer trade credit and financing options that reduce the financial burden on buyers while ensuring that sellers receive timely payments. This not only prevents disintermediation but also enhances the overall user experience.

Value-added services to retain users

Providing value-added services is another effective strategy to prevent platform bypass. These services can include logistics support, quality assurance, insurance, and financing options. By offering comprehensive support throughout the transaction process, marketplaces can create a value proposition that is difficult for users to find elsewhere, thereby encouraging them to stay on the platform.

Hokodo’s report highlights the success of B2B marketplaces that offer end-to-end value to their users​​. This includes services like order management, financing and post-sales support. By integrating these services into the platform, marketplaces can make it easier for buyers and sellers to conduct business, reducing the incentive to bypass the platform.

For example, providing logistics support can streamline the shipping process, making it more reliable and efficient for sellers. Similarly, offering insurance can protect both buyers and sellers from potential risks, adding an extra layer of security and trust. These value-added services not only enhance the user experience but also build long-term loyalty and trust.

Delivering end-to-end value

Comprehensive pre-sale, sale and post-sale services

To build trust and loyalty, B2B marketplaces must deliver value at every stage of the transaction. This includes pre-sale activities such as marketing and brand building, seamless sales processes with excellent user experience, and post-sale services like customer support and feedback collection. A well-rounded approach ensures that both buyers and sellers feel supported and valued throughout their interactions with the marketplace.

Successful B2B marketplaces provide end-to-end value by integrating various services into their platforms​​. For instance, pre-sale services might include targeted marketing campaigns and detailed product listings that help buyers find what they need quickly and easily. During the sale, a seamless checkout process and flexible payment options ensure a smooth transaction. Post-sale services, such as efficient customer support and easy return policies, further enhance the user experience and build trust.

Enhancing user experience

A superior user experience is critical for retaining users and building credibility. This involves creating an intuitive, user-friendly interface, ensuring fast and reliable customer service, and continuously improving the platform based on user feedback. A positive user experience fosters trust and encourages repeat business, which is essential for long-term marketplace success.

The Hokodo report mentioned above indicates that 38% of marketplaces prioritise user experience (UX) projects to retain sellers, while 28% focus on UX to retain buyers​​. This suggests that enhancing the user experience is a key strategy for building loyalty and trust.

To improve UX, marketplaces should focus on simplifying the navigation and search functionality of their platforms. Buyers should be able to find products easily, and sellers should have access to intuitive tools for managing their listings. In addition, providing responsive customer service can address user concerns promptly, further building trust and credibility.

Building trust, reputation, and credibility in B2B marketplaces requires a strategic approach that addresses the unique challenges of this sector. By implementing robust vetting processes, ensuring transparent communication, offering competitive payment terms, and delivering comprehensive value, marketplaces can foster trust and loyalty among their users. Continuous improvement and a focus on user experience are also key to maintaining a strong reputation and achieving sustained success.

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