Business-to-business (B2B) e-procurement group cloudBuy PLC (LON:CBUY) is to deliver a new online marketplace for FSB, the non-profit business services provider.
The FSB marketplace will enable its 170,000 members to trade with each other securely and cost effectively as well as allow both consumer and business buyers to buy goods and services directly from FSB's trusted member network. The FSB marketplace will also act as a showcase for the goods and services of innovative smaller businesses to larger organisations and overseas buyers, cloudBuy said.
The contract with FSB runs for five years, some of which will accrue in the current year, but not enough to move the dial on current market expectations, as the marketplace is not scheduled to go live until next year.
Revenue will be derived from a mix of implementation charges, software-as-a-service (SaaS) licensing, support and hosting fees, plus a share of transaction revenue.
“The new FSB marketplace will provide a significant added benefit to members,” asserted Dave Stallon, FSB’s commercial director.
“The marketplace will not only support B2C [business-to-customer] product sales but also enquiries, booking and payment for services and complex B2B transactions. Connecting members to trade online will provide advantages for both the buyers and suppliers, reducing transaction costs, increasing order accuracy, and improving customer satisfaction. The FSB marketplace also has the potential to act as a global shop window for leading-edge products and services from the UK," Stallon said.
Lyn Duncan, cloudBuy’s chief executive officer, said the marketplace would provide smaller UK businesses with more opportunities to buy and sell their goods and services online.
“Members will also have the option to take a full cloudBuy e-commerce web site and will find it easy to connect to other cloudBuy sector-specific marketplaces where appropriate. cloudBuy brings a wealth of experience to this endeavour following e-marketplace projects in India and South East Asia,” Duncan said.
FSB was established more than forty years ago to help its members succeed in business. It provides its members a wide range of business services, including advice, financial expertise and support, and goes in to bat for small business when the government is drawing up business legislation.
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The shares were up 15.4% in mid-morning trading at 8.08p.