B2B e-commerce is simply defined as ecommerce between companies. About 80% of e-commerce is of this type.
A B2B company is essentially a business relationship between manufacturer and a wholesaler, or a wholesaler and a retailer. A supply chain usually involves more than two companies.
Business to business in ecommerce is an online business model with flexible enterprise software as a ground solution for purchasing, selling and promoting services, information, or products.
In B2B e-commerce examples, the ecommerce technology can become a critical success factor. The website must represent your business well, be user-friendly, and allow prospective buyers to get the information they've been searching for. This raises a question about the right choice of business to business ecommerce software.
Examples: – Intel selling microprocessor to Del
Examples of some of the B2B Websites:
1. www.Getrespons.com: It is an innovative B2B service based company that has revolutionized the small business email marketing niche. Providing a web based email marketing platform aimed at the small business owner wanting to market their own business online.
2. www.Incorporate.com: Incorporate.com who have reduced the cost and streamlined the process of creating, limited liability companies. In a few easy steps online, anyone can create their own company for a fraction of the cost a corporate lawyer would charge
The impact of B2B markets on the economy:
B2B E-Commerce have a significant impact on the economy as they help to lower various cost involved in business transactions. There are the cost areas that are significantly reduced through the conduct of B2B E-Commerce :
(a) Search costs: Buyers need not go through intermediaries to search for information about suppliers, products and prices as in a traditional supply chain. Internet is more efficient information channel then its traditional counterpart. So effort, time and money can be saved. In B2B, buyers and sellers are gathered together into a single online trading community and reducing search cost even further.
(b )Processing cost:
Reduction in the costs of processing transactions (e.g. invoices, purchase orders and payment schemes), as B2B allows for the automation of transaction processes and therefore the quick implementation of the same compared to telephone and fax.
(c) Avoid intermediaries:
Through B2B e-markets, suppliers are able to interact and transact directly with buyers there by eliminating intermediaries and distributors.
(d) Transparency in pricing:
The gathering of a large number of buyers and sellers in a single e-market reveals market price information and transactions processing to participants. Thus increases the price transparency.
Advantages and Disadvantages of B2B Model
Advantages:
- It can efficiently maintain the moment of the supply chain and the manufacturing and procuring processes.
- It can automate corporate processes to deliver the right products and services quickly and cost-effectively.
- B2B is global trade market, where we can buy anything at anytime.
- Creates new sales opportunities
- It lowers the search cost and time for buyers to find products and vendors
Disadvantages of B2 B Model
- Delay of goods where the earliest to receive goods would be the next day
- Some goods cannot be purchased online such as perishable items
- does not Enable the experience of the product before purchasing
- Fraudulent websites and scams
- Security issues leading to credit card fraud or identity theft
Titany answered the question on
September 23, 2021 at 07:36