Building Better B2B Marketplaces

B2B marketplaces are growing fast, and getting more complex. This research report from Digital Commerce 360, sponsored by Vertex, explores what it takes to build a marketplace that works for buyers and sellers alike.

Beyond connecting buyers and sellers

Connecting buyers and sellers is the baseline. The real opportunity is in making commerce easier for everyone involved. That insight comes straight from Michael Eichinger, COO of Bay Fastening Systems, which launched its BaySupply.com marketplace in 2021. His team built a quote-management system, automated inventory feeds, and seller-routing tools to reduce manual work for procurement teams. Surveys cited in the report confirm what Eichinger sees in practice: B2B buyers prioritize convenience over price.

How Amazon Business keeps raising the bar

Amazon Business offers a useful benchmark. The platform uses AI and machine learning to match products to buyer demand, has expanded into enterprise accounts covering nearly all Fortune 100 companies, and now offers direct-ordering APIs so buyers can bypass the dot-com interface entirely and connect Amazon's product catalog directly to their internal systems. The report details how Amazon Business is also exploring private-label products and services, areas where niche marketplace operators already compete.

Why tax and compliance can't be an afterthought

Vertex senior product manager Mary McNeer explains the compliance challenges marketplace operators face as they scale. Getting the solution design right from the start matters most. Tax, regulatory, and invoicing requirements need a seat at the table during the design phase. Not after launch. Marketplace facilitator rules, e-invoicing mandates, and seller data requirements vary across regions and change frequently. Managing large volumes of seller, product, and transaction data accurately is critical to getting tax treatment right on every sale.

The right technology makes the difference

Scalable tax technology helps marketplace operators automate complex compliance processes, reduce manual effort, and keep the right data flowing to the right systems. For growing B2B marketplaces, that automation is what allows the business to expand into new markets without creating compliance risk.

The long game

Building a successful B2B marketplace is a long-term investment. Eichinger estimates five to eight years before BaySupply.com fully recoups its development costs. But the network effect (more buyers attracting more sellers, and vice versa) is what creates lasting competitive value. This report gives marketplace operators a clear-eyed look at what that journey requires.