Marketplaces have tremendously affected online consumer behaviour by reducing the time of the buying cycle (one of the many reasons). The other day, while searching for Smart TV on Google I ended up in Amazon’s cart. Note that, I was just doing my pre-buying research but ended up purchasing one. This purchase pattern is not limited to any particular segment or industry albeit has penetrated into every market type. Thanks to Amazon and Alibaba, Oil and gas marketplace is also becoming a thing now.
Before going any further into this topic, we need to understand the need for a marketplace in the present scenario.
Oil and Gas Marketplace: Why this conversation?
People have started buying online and this culture has been supported by the fine experience provided by companies like Uber, Airbnb, and eBay etc. Hear from the stats here:
“The global e-commerce market had sales reached $3.5 billion and represented 14% of the total share of global retail sales by the end of 2019.” – Statista
With time, an online marketplace has grown to be a more reliable, transparent and easy to use platform for the consumers. The introduction of technologies like voice assistants (used by Amazon Prime) and various payment gateways easing out on all the worries, B2C sector marketplaces are a hit now. Aiming at solving similar challenges in the B2B sector, oil and gas marketplaces and similar models in other heavy industries are gradually coming into the picture.
But how will it be possible to bring all the segments (when each segment is a complete industry in itself) of such a big industry on any single platform? Will it even work? Where to start from to build one? But most importantly, do we even need any such model in this industry?
All these questions coming to your mind while reading this piece are very legit keeping in mind that this concept is a little new to the oil and gas industry. The companies have been surviving and thriving till date procuring from their vendors (a limited list of companies and personnel from across the globe) and connections built over a period of time. But now B2B markets are being very much influenced by all the trends and purchase patterns of the B2C sector. Digitalization has taken multiple industries by storm. Now everything in the oil and gas industry has started to align to achieve just that. And the oil and gas marketplace is the recent example of this development.
Why should the oil and gas companies consider this option?
There is no doubt that B2C markets are very different in nature than B2B. The major difference being the driving force of demand generation. In B2B the demand is never dependent on the need of any individual but relies on the need of the organisation. This one differentiator is the bedrock of the oil and gas marketplace model. Below are the reasons that will strengthen the argument on the need for an oil and gas marketplace.
- Converting Your Online Presence to Qualified Leads
Putting your products and services up for listing is a very easy way of creating your online presence, to start with. It will help the company to be found for the products and services it provides. We all know that with each passing year, the search on the internet is increasing exponentially.
“Google now processes over 40,000 search queries every second on average, which translates to over 3.5 billion searches per day and 1.2 trillion searches per year worldwide.”
Oil and gas marketplace will help in converting the searches happening for your products and services into qualified leads for your business. This will not only impact your business growth but will increase the visibility of your brand.
- Simplifying buying and selling process
Days go by searching for the right vendor and the companies have to rely on the local ones if the requirement is urgent. Procurement, at the moment, is a very complex process and cuts out on many good options because of geographical boundaries or lack of knowledge. With oil and gas marketplace in the picture, purchasing will not be a hustle anymore.
There will be a lot of options from all around the world to choose from. Moreover, the small size OEMs and suppliers will also get a chance to showcase their products and services and build strong business relations with companies from across the globe.
In short, it will make the buying and selling process very simple for the oil and gas industry and will help in building business relations by just tapping the keypads of your gadgets.
- Reduction in the time of the buying cycle
After days of hustle, when you find the right vendor, then negotiations are in order and it takes a month or even more than that to buy any equipment or rent service.
But what if there is a significant cut down in the time of the first and second step? Won’t the process become quicker and easier? Well, this is one of the many reasons I would like to emphasize when I say that we need an oil and gas marketplace for the industry.
- A better marketing strategy
Marketing is the backbone of all the efforts companies put in to reach out to the right audience. With a decision to become a part of the oil and gas marketplace, you are halfway towards completing that goal.
Because when you will be easily found for the service and products you offer, the brand visibility will increase automatically. Now all your marketing team needs to do is set the retargeting goals very strategically.
(Read how Energy Dais aced the online marketing game here Oil and Gas Marketing!)
- Shipping will no more be a problem
Most of the marketplaces provide the shipping facility which might or might not have a separate fee. If the oil and gas marketplace you go for provides the shipping service, as a seller, one of the most important steps of the complete selling journey has already been taking care of.
This will save a lot of time and money for both the parties and enhance the overall efficiency of the process.
Apart from the points mentioned above, ease of payment, availability of varieties, and cost-efficiency are some of the reasons which cannot be ignored. Oil and gas marketplace has every good reason to become the next hit trend of the industry. There might be some hurdles and cons, which every new technology/advancement will have, but to overcome that and create an efficient ecosystem will always be the primary focus.
Will Energy Dais create a marketplace in future?
The idea ‘Simplifying Energy’ has always been at the core of any advancement that we have planned here at Energy Dais. Making procurement easy for the oil and gas companies, connecting buyers and suppliers and building an efficient network has all been a plan to make processes easier across the industry. The team has very exciting news for the industry which will be revealed once we are in the execution phase of our model.
Till then, I would love to hear your thoughts on this fairly new concept.