It truly has yet to scale, but the federal government keeps on building its B2B marketplace step by step.
The federal government in July 2020 took an initial step to work with three established ecommerce organizations. They were: Amazon.com Inc.’s Amazon Business, Thermo Fisher Scientific Inc. and Overstock.com Inc. The goal was to provide a secure, modern buying and spend-management experience for government agencies. With that in mind, the General Services Administration (GSA) set out to test the use of commercial e-marketplaces for annual government procurement of up to $6 billion worth of products. Those products ranged from furniture and office products to laboratory supplies.
Now, the B2B marketplace is live and slowly but surely beginning to ramp up operations. However, it is worth noting the latest available numbers are from the federal government’s 2022 fiscal year.
In 2019, sales through the federal government’s program totaled $12.5 million, rising to $53 million in fiscal 2022.
Other metrics include:
- The number of estimated government purchase cardholders making purchases on the platform increased to about 18,000 in fiscal year 2022 from 4,300 users in fiscal year 2021.
- The average order size was approximately $270 per order for fiscal years 2021 and 2022 combined.
- The cost of operating the program (federal government B2B marketplace) for fiscal year 2022 was about $1.5 million with expectations to spend $3 million on operating expenses over the next few years.
- The number of third-party suppliers participating on the platforms increased. It rose from almost 15,000 in fiscal year 2021 to almost 30,000 in fiscal year 2022.
- About 96% of all orders are through Amazon Business.
More Charts & Data Stories
Check back soon for more Charts & Data Stories, like our weekly B2B infographics. Here’s last week’s. We add new content regularly.
Sign up
Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan. Follow us on LinkedIn and be the first to know when we publish Digital Commerce 360 B2B News content.
Favorite