B2B electronic commerce (business–to–business electronic Commerce) is the online sale of goods or services between businesses. Online orders allow for better buying efficiency and effectiveness for distributors, wholesalers, and manufacturers.
B2B Businesses Have Historically Been Slow Adopters of Ecommerce
However, buyer expectations are increasing faster than ever; with the pandemic being a catalyst for change and a growing number of millennials, B2B ecommerce website need to keep up with them.
These days are gone. Gone are cold calls, offline marketing activities, paper-based manual transactions, and cold calling. B2B buyers are constantly looking for the same experiences as B2C sellers and becoming more impatient with those who don’t offer them.
What Are The Various Types Of B2B E-Commerce?
There are many types of B2B ecommerce. Each one is different in terms of its audience and scope. Here are four examples.
Manufacturers
Manufacturing companies use raw materials to create large quantities of goods. B2B ecommerce allows manufacturers to create an online marketplace, such as a website, where other businesses can purchase the goods. Wholesalers and other producers are common customers of manufacturers. For example, a car manufacturer might source specific parts from multiple manufacturers. Each part of the B2B relationship leads to the production of automobiles sold to consumers.
Distributors
A distributor is an intermediary who acts between businesses and manufacturers. Distributors purchase large quantities directly from manufacturers to sell to retailers and other manufacturers. Distributors often have networks of buyers who can increase the visibility and sell more of the manufacturers’ products. This is especially helpful for B2B business owners trying to establish an internet presence.
Wholesalers
Wholesalers buy large quantities of goods directly from manufacturers or distributors and then sell to retailers. They can profit by purchasing lower-priced goods and then selling them for retail value. It is common to find wholesale B2B business opportunities in
- Construction
- Foodservice
- Supply of medical supplies
- Retail
They are often sold to larger, well-known franchises than to smaller businesses.
B2B2C
For “business-to-business-to-consumer,” the B2B2C involves a business selling to and partnering with another intermediary business to sell to consumers. B2B2C allows direct access to a customer base but most of the sales go through the intermediary, which has a deeper and more established business-to-consumer relationship. This partnership allows lesser-known businesses to market their products to consumers while also benefiting greatly from the reputation of their partners. One example of a B2B2C business would be a food-delivery service that depends on the reputations of its associate restaurants to deliver their service.
Advantages of B2B Electronic Commerce
B2B ecommerce has many benefits for businesses.
Sales Increases
B2B firms make it easier to buy goods online. B2B sales are more likely to result in higher sales, given the tendency for wholesale sales. Automated features such as cross-selling and up-selling can be introduced to digitize sales. This would allow you to recommend related products or deals to clients who make higher purchases.
Wider Visibility
You can sell products and services online without being located in the same area. Anybody can access a business’s catalog online and make purchases. A business can use search engine optimization and other digital marketing strategies to grow its reach. It also can reduce costs relative to traditional advertising.
Versatility
B2B2C shows that e-commerce allows B2B to sell directly to customers and businesses. B2B businesses can expand their customer base and sales by making the system adaptable to all purchases and targeting multiple audiences.