B2B E-Commerce (Business to Business Electronic Commerce) is the process of sale of products and services between companies through an online sales portal. On the other hand in B2C (Business to Customer) the online business is transacted between a business and individual customers (not a business entity).
Though B2C Ecommerce transactions are relatively simple, B2B transactions are bit complex. Prices are generally fixed, shipping is straightforward, and quantities are low in In B2C. On the contrary, B2B transactions prices are highly variable, relying on a number of pricing variables throughout. Because business are much larger entities, the volume of products and services are much higher and have much more complicated shipping requirements. More complex tax and regulatory impediments have to be dealt in B2B E Commerce markets.
1. Buyers plan for purchases and make recurring purchases
2. Purchases often involve several layers of approval and may involve different departments
3. Purchases are based on long-term and on-going relationships.
4. Prices are usually negotiated individually.
1. Increased Reach- The B2B portals of ecommerce offer a way of increasing reach to customers and making your organization and products known by more potential customers.
2. Streamlining, transparency and efficiency- The B2B ecommerce will streamline customer interactions by enabling the process of ordering making it reliable and efficient.
3. Better management of suppliers and customers- Both the suppliers and customers are better managed in the concept of B2B ecommerce. Ultimately both are benefitted.
4. More sales- You will not only reach new clients, but ecommerce will also allow you to quickly implement the automated up-sell and cross-sell program of recommendation, providing suggestions to clients on your site and making them buy related products or products containing more functionality and features.