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  • MAP Asia Pacific Ltd

Not Amazon or Flipkart, but B2B e-commerce is silently turning the wheels of the economy

With the economy recovering post the Covid-19 pandemic there has been a significant shift in the way Micro Small and Medium Enterprises (MSMEs) buy, sell and operate. While a lot has been written about the B2C e-commerce boom in India, it is B2B e-commerce that is silently turning the wheels of the economy by facilitating critical everyday commerce between businesses. Driven by necessity during the pandemic and by the government’s broader push for digitisation of commerce, B2B marketplace platforms have been on the rise and are now an integral part of the operations of retailers, wholesalers, distributors, and even your friendly neighbourhood kiranas. While 2022 saw accelerated adoption of end-to-end B2B platforms, trusted networks, alternative credit scores, and easier access to finance, we can expect several new and interesting trends to gain traction in this space in 2023 that will define how B2B e-commerce will develop in the coming years. Accelerated development of enabling infrastructure The government has rolled out numerous initiatives to foster a vibrant e-commerce ecosystem in the country. It has put in place a legal framework for enabling e-commerce, including streamlining the licence process. It has notified consumer protection rules for e-commerce, amended equalisation levy rules, and increased the FDI limit in B2B e-commerce to 100% thereby opening the doors for foreign investment in the sector. The latest Union Budget 2022-23 gave a major push to the sector by giving Data Centres and Energy Storage Systems, infrastructure status. In 2023, we can expect both the government as well as private players including start-ups to accelerate their efforts toward building the right enabling infrastructure for the long-term growth of B2B e-commerce in the country. Transformation in logistics The government’s warehousing policy with a roadmap for development of exclusive warehousing zones and Multi-Modal Logistics Parks (MLPs) in public-private partnership (PPP) mode is set to ease transportation and reduce logistics costs in India. These warehousing zones are expected to help significantly cut India’s logistics cost, which is currently 14%-16% of gross domestic product (GDP), compared to 8%-10% of GDP in China and 12%-13% in the US. In addition, the recently announced National Logistics Policy framework also aims to bring a transformative approach to the logistics ecosystem while the Unified Logistics Interface Platform (ULIP) will bring all digital services related to the transportation sector into a single portal. Read more at:


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