The business-to-business (B2B) online retail market is expected to generate revenues of $6.7 trillion by 2020, according to analysis from Frost & Sullivan.

Frost & Sullivan says the B2B e-retail market has been witnessing strong growth as a result of rapid migration of manufacturers and wholesalers from legacy systems to open and online platforms.

According to the research firm's new analysis titled "Future of B2B Online Retailing" online B2B sales will account for close to 27% of total manufacturing trade.

As marketplaces and cross-industry public platforms such as Alibaba and Amazon become popular, B2B online relationships are likely to move from a one-to-many to many-to-many business model, it reads.

And geographically China and the United States have been touted as leaders of the B2B online retailing market.

The Frost & Sullivan report is a global study and not Africa-specific, it does not reveal the continent's contribution to the B2B online market.

Moreover, according to Naila-Govan Vassen, ICT Industry Analyst at Frost & Sullivan Africa, the B2B environment is sufficiently varied from the B2C environment, so many providers in the B2B arena do not view the parallel between the successes of B2C eCommerce implementation and, therefore, the potential benefits of implementing a B2B eCommerce strategy.

However, as Vassen explains, the rate of internet penetration across Africa bodes well for the emergence of social commerce as a new business model.

"Social commerce as a new business model is a game changer. Approximately 70% of Internet users worldwide are expected to be linked via social networking services, making this a $30 billion industry in 2015 and a key strategy for eRetailing growth," says Vassen.

"Fixed and mobile internet penetration rates are increasing throughout Africa, creating a larger base of consumers with access to the digital economy. The overall internet market is estimated at approximately 32.9 %, with users primarily connected via a mobile network (99.7%), compared to fixed line internet access of 0.3%. From the internet users, it is estimated that at least 63 million would be linked to a social media network service. In South Africa, the B2C eCommerce, with specific reference to the internet shopping, was valued at at least $490 million by the end of 2014," she adds.

Frost & Sullivan visionary innovation group team lead, Archana Vidyasekar said,

"With businesses buying more than selling online, these seller-driven B2C-type open public networks will help provide more visibility and storefront capabilities to sellers."

Despite the growth of the B2B online market, it isn't without its challenges as the Frost & Sullivan research notes that retailers will face certain challenges while implementing B2B e-commerce strategies.

Unlike the B2C setting, in the B2B e-commerce setup, prices are variable and order volumes are high and of a wide range, necessitating a flexible shipping and logistics solution, according to a statement.

Tax and regulatory concerns also impact sales highly, and executing marketing or educational initiatives in the B2B setting is complex.

"Nonetheless, with technological advancements facilitating the procurement of goods on the move through smartphones and tablets, business use of online platforms will rapidly grow," said Frost & Sullivan visionary innovation group consultant, Pramod Dibble.

Dibble added,"The emergence of cloud platforms that offer more scalability, both as a software and infrastructure service, too is pushing businesses towards B2B online retailing."