Reasons for B2B Startups Food Fail and solutions to Avoid It

Let’s first define the B2B startups food market and explain how it works.

The B2B marketplace connects food sellers such as manufacturers, distributors or vendors) with bulk buyers and foodservice companies restaurants and supermarkets, caterers and cafes.

B2B marketplaces are designed to streamline the buying and selling of tech-savvy products and services by eliminating paperwork.

B2B startups Market Overview

According to Forrester US B2B E-Commerce will account for 17 per cent of all US B2B sales by 2023,

Online B2B platforms offer many benefits, especially in the food industry.

These platforms enable entrepreneurs to accelerate delivery, save time, reduce costs, synchronize workflows, and track analytics.

But, B2B food companies face many challenges when launching their product on the market.

Let’s get deeper into them.

Why B2B Food Startups Failed?

Problem 1: Trust is lacking in your B2B food platform

The first question that pops into your mind as a potential user is “Why should I sell or buy on this platform?” Are there any guarantees that I will get quality products? It is important to take the time to think about ways you can demonstrate authority on your platform.

Solutions: Quality testing and thorough verification

Registering is a process that should be considered from every angle. To sign up or register, your users must be associated with a licensed café, restaurant, catering company, or hotel. It is also important to provide a certificate.


After delivery, leave reviews about the seller. Keep an eye out for reviews after delivery. Only leave those with a high rating on your site.

Risk mitigation

Your users could be unhappy with the products they purchase on your B2B marketplace. It is crucial to clearly explain shipping and returns policies and offer a money-back guarantee. People will be more inclined to purchase your services if they know they won’t lose anything.

Problem 2: You don’t know who your target customers


Your customers are the driving force behind your product. You need to know who your customers are. This is how it’s possible.

Solutions: Do your research on your competitors

It is difficult to push your product onto the market without understanding your competitors. It will help you find the right direction by thoroughly researching your competitors’ business models and strategies.

This can be done with the following tools: SpyFu and SEMrush, SimilarWeb and Alexa. These tools allow you to conduct competitor research and gain insights into your target market.

Define the products you are selling on your B2B marketplace

You can outperform your competition by focusing on a specific industry. You will create a loyal audience for your product by focusing on a specific industry. You might specialize in selling organic products, spices or fruits and veggies.

Your buyer persona

For the B2B food industry, buyers are both manufacturers (B2B distributors and suppliers) and bulk customers. Reach out to your network, including co-workers, friends, and partners. This will help you reach potential customers. This stage is about finding out what their problems and pain points are. Then, consider how your platform can help them.

Expand your product- and service range

Consider how you can be different from your competitors. You can do this by expanding the functionality of your online marketplace. You can make the platform more user-friendly or expand your product selection.

Problem 3: Your platform doesn’t clearly explain the value of its offerings

Value proposition. These words will take your B2B food business up a notch. Your users will appreciate something different. These are just a few ideas.

Solutions: Analytics at the highest level

Integrate analytics to track product performance in different areas and cities, see the products in demand, and analyze sales performance.

Loyalty programs available

Reward your customers for using your B2B marketplace. You can reward them with points for ordering online, and referring friends, restaurants, and caterers. These points can then be exchanged for discounts on your marketplace.

To give your customers additional benefits, collaborate with third parties

If your online food marketplace sells organic ingredients to restaurants and cafes, you might partner with a company selling culinary herbs to offer different packages at a discounted price.

Always innovating

Your B2B food marketplace should not be turned into a godforsaken place. Always think about your users and treat them with new novelties. These words from Floor 64 CEO and founder are more relevant than ever.

He says that by innovating and offering increased benefits to customers, you no longer need to worry about your competitors “catching up” since you are always ahead.

Problem 4: B2B model not defined

Consider the following factors when deciding on the business model for your product: the key activities of the company, the key resources required to promote your product, your value proposition, the relationship with your customers, market segmentation and revenue channels.

Solutions: Define the consumer segments

No matter what industry you’re in, your business will fail without profitable clients. You must divide clients into groups to meet their needs.

Segment your customers based on their interests, distribution channels, preferred offers, and other aspects of the proposal. There is no one size fits all. It is important to recognize that clients have different needs and require different approaches before you build a business model.

Before your beta product is released, start promoting your product.

Visit the conferences, summits and events that are relevant to your industry and share your ideas with potential customers. Get brand awareness for your product, and get out of the shadows.

Develop your online marketing strategy

To communicate with potential customers, create a product landing page and a contact form. Get listed on niche sources. Launch your corporate blog to give useful information.

Choose the revenue channels

Find out what your clients are willing to pay. Two types of revenue channels are common in business models: regular profits from periodic payments and profit from isolated deals.

Consider which segment you should focus on to attract clients from the “other side” of your platform

A multi-sided B2B marketplace for food is possible. It is important to simultaneously attract and retain both sides. If there aren’t enough bulk buyers, you won’t attract suppliers and manufacturers.

It is possible to offer free value to one segment of the consumer market and then attract another segment by doing so.

Let’s take a look at a fascinating case about Microsoft. Microsoft was giving away its Software Development Kit free of charge to encourage developers of applications for the operating system. Windows users have increased due to the increasing number of apps. Microsoft’s revenue has significantly increased as a result.

How Brisk Logic Can Help You?

Let’s just say that most B2B food startups fail due to a lack of understanding of their target audience, business model and value for users. They also don’t know how to increase brand awareness. This isn’t about you, we believe!

Do you need help setting up an online B2B marketplace for your business? Get in touch with the Brisk Logic team to receive professional assistance.


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