The ecommerce business has been on the rise for the past few years. Advanced technology has made our daily tasks easier and has been rendered useful to countless business operations. You can now run your entire business process by using technology and the internet.
Some people who are yet not aware of types of ecommerce must first understand the concept before indulging in how Business to Business (B2B) ecommerce works.
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Types of Ecommerce
Ecommerce basically refers to exchanging information through electronic media like the Internet. Here are the two types of ecommerce
- B2C Ecommerce: It is the most commonly used ecommerce that we encounter in our daily lives, like online shopping.
- B2B Ecommerce: It is the electronic exchange of information between two businesses like EDI (Electronic Data Exchange) and the main topic of our discussion.
Importance of B2B Transactions
B2B ecommerce is important because almost every business needs to purchase products and services from another firm. Moreover, most business processes are done online, which improves efficiency and helps other companies grow. Let’s look at some types of B2B companies to give you a clearer outlook.
Types of B2B Companies
Some of the common B2B types of companies include the following:
Agencies and Consultants
They provide advice and guide other businesses regarding their work. For example, software consulting provides technology solutions after identifying the business needs of a particular company. Likewise, a website agency can help design websites for a brand.
Production Companies
Some companies design, create and produce their own products. They can sell their products to businesses directly or through other sources.
Retailers Business
You may be aware of retail sellers as they are quite common in Ecommerce. They sell services and products that other companies produce to businesses or individuals. They can do business on both physical and online platforms.
How does B2B Work?
In a business-to-business transaction, one company sells products or services to another company. The purchase is mostly made to be used by a group or entire department of the buyer company. Like the whole office uses furniture and computers bought from another business.
The buyer holds a product selection process for buying on a large scale. It’s is carried out by the buyer committee that includes:
- A decision-maker who is responsible for the budget.
- Someone who evaluates the capabilities of the products.
- Individuals who put their input on the decision.
Benefits of Business to Business Ecommerce
Here are some reasons why B2B is successful.
Bulk Sales
A business to consumer (B2C) company requires millions of individual sales to run its operations successfully. On the contrary, a B2B company can significantly grow sales with a small number of high-value deals.
Huge Target Audience
Companies with B2B e-commerce can expand their services to other businesses in other geographical areas. Selling products or services in bulk can help them grow in more than one location. Moreover, B2B companies can make it easy for clients to purchase and view their products through online platforms.
Faster Delivery
With the help of amazing e-tools, B2B e-commerce companies can accelerate the buying process for their clients. The use of an integrated system enables automatic updates on inventory and managing complicated orders.
