The Value of Enterprise Gateway Marketplaces for your Purpose-Driven Business
The world we live in is more complicated and interconnected than ever and business is no different. Companies must be more efficient, more sustainable, and more just every day. This constant evolution requires innovative and creative solutions to solve the most pressing issues. In the last ten years, online marketplaces have become a popular option to help fill many modern-day needs, both directly to consumers (B2C) and among corporations (B2B). Need a more accessible ride? Call Uber. Need a graphic designer? Use Upwork to help you find the right freelance business partner.
While the B2C marketplaces are more well known, their B2B counterparts are gaining momentum. And, as the world becomes more complicated, innovative solutions become more important. Recently, a new, more niche variety of B2B marketplace has begun to solve the most complex logistical issues between large enterprises: Enterprise Gateway Marketplaces (EGMs). EGMs make it easier to do complicated business, especially for small mission-driven companies. How? We’re glad you asked.
Are you a mission-driven company ready to make your first enterprise sale? Create your 17 Ways profile today to start selling.
1. EGMs Provide Visibility
One of the most common issues we hear (and have experienced ourselves) from small purpose-driven B2B companies is that the biggest hurdle to growth is finding your first enterprise buyer. EGMs provide a curated platform that make it easier for enterprises to find you.
“Unlike B2C marketplaces, which can have millions of customers, enterprise gateway marketplaces often have 10 or 20 large enterprise customers that all connect to an overlapping global base of many thousands of R&D suppliers.” -Christopher Peterson, Forbes
This leads us to the second component of visibility — finding and partnering with other like-minded suppliers so that together, you can fulfill the complete set of buyer requirements. EGMs essentially provide small business owners with a pre-vetted network of businesses to collaborate and partner with which would normally take months if not years to accomplish otherwise.
Getting your first buyer is often a significant turning point for small business; an EGM can increase your chance of success by providing access to both buyers and collaborators.
2. EGMs Solve Logistical Incompatibilities
Due to the sheer size of enterprises, selling to them can be wrought with logistical obstacles that bar many small businesses from being able to participate meaningfully. For example, the enterprise sales cycles can last anywhere between 6–18 months and payment can take another 3 months, enough time for a small practice to go under just waiting on payment.
Because EGMs create a gateway for enterprise business users with standard terms and conditions, they ensure a legitimate and appropriate pay structure for both buyer and seller, meaning small businesses get paid on time and in full.
3. EGMs Provide High Order Value
Because buyers on EGMs are large enterprise clients, they often have recurring orders across multiple business units. A small business often has access only to the single business unit they transacted with; expanding to the next business unit is like selling to a different company and requires another long sales cycle. However, for a small supplier, an EGM can help them build a history and relationship beyond the first transaction. And with referrals and recommendations built-in, an EGM can help a small business successfully contribute to a thriving business ecosystem.
4. EGMs Share the Risk
Large corporations, and Fortune 500 companies specifically, are their own animal when it comes to structure. Selling to complex institutions with multiple stakeholders is complicated. How specifically do we help with this?
This is where the Gateway part of an EGM comes into play. The Gateway is set up in collaboration with all the buyer stakeholders, from purchasing to legal, cutting through the red tape that suppliers typically need to navigate once for all small businesses on the marketplace. This signals to individual buyers that any supplier on the marketplace is “pre-approved”, making it easy for them to buy exactly what they want.
17 Ways cuts through corporate red tape to enable enterprises to use their purchasing dollars to do good. As an EGM, 17 Ways becomes the single vendor, managing sourcing, legal, and payments for 1,000s of suppliers so that enterprise procurement avoids the risks and costs of setting up new vendors.
We have recently added 2 Fortune 500 enterprise buyers who are looking to buy from purpose-driven businesses in the next few months, especially women and minority-owned businesses. Sign up today to be part of our pilot program at 17Ways.co and close your first enterprise sale!
