WHAT IS B2B ??
"B2B" is contemporary shorthand for a longtime sales practice calledbusiness-to-business. B2B transactions primarily target companies and other wholesale buyers, while transactions targeting individuals are calledB2C, or business-to-customer. Many organizations have both B2B and B2C components, but it's not unusual for a company to specialize in B2B services or sales. In fact, the vast majority of products and services sold are considered to be B2B in nature.
One major reason for the popularity of B2B sales and services is sheer volume. An individual customer may visit a clothing manufacturer's website catalog and order two pairs of shoes or a sweater. The buyer for a national chain of clothing stores, however, may order 5,000 pairs of shoes and 2,000 sweaters. Without a B2B component, the manufacturer would have lost out on a very lucrative sale. This is why many companies provide B2B options alongside the B2C offerings at their websites and other outlets.
B2B sales are also generated by providing a specialized product line or service not available to the general public. This form of B2B transaction is very common in the manufacturing world. A company which produces shaving cream in cans, for example, may need a specific plastic nozzle. Several plastic injection molding companies would send sales representatives to pitch their particular designs. These nozzles would be useless for individual customers, but a manufacturer may order thousands of them.
With the growth in electronic communications, B2B has taken on even more importance. Instead of simply focusing on business-to-business sales, modern corporations are conducting other financial transactions online. B2B communications are now being used to promote investment, trade stocks and form financial alliances. Because the price of these transactions is far beyond the reach of most individuals, there is no equivalent business-to-customer option available. Some B2B transactions handled electronically can literally run into the billions of dollars.
ADVANTAGES OF E-COMMERCE
Electronic commerce, or e-commerce, refers to economic activity that occurs online. E-commerce includes all types of business activity, such as retail shopping, banking, investing and rentals. Even small businesses that provide personal services, such as hair and nail salons, can benefit from e-commerce by providing a website for the sale of related health and beauty products that normally are available only to their local customers.
There are a few advantages of E-commerce :
Easy for Businesses
Although e-commerce once required an expensive interface and personal security certificate, this is no longer the case. Virtual storefronts are offered by a variety of hosting services and large Internet presences that offer simple solutions to vendors who have little or no online experience. Tools for running successful e-commerce websites are built into the hosting servers, eliminating the need for the individual merchant to redesign the wheel. These tools include benefits such as virtual shopping carts, inventory and sales logs and the ability to accept a variety of payment options, including secure credit card transactions.
Security Improvements
Early e-commerce was stunted by security fears, but improved technology has made millions of people worldwide feel comfortable buying online. Seeing the vast potential in online commerce, most credit card companies helped allay fears by guaranteeing that cardholders would not be held responsible for fraudulent charges as a result of online shopping. All of these factors have helped e-commerce become a booming industry.
Convenient for Shoppers
The popularity of online commerce is understandable, considering the time and hassle involved in running from store to store, searching for an item. It not only takes valuable time and energy, but using transportation usually costs money. Shopping online whenever the mood strikes — even in the middle of the night — has many advantages. Not only is it convenient to shop at a myriad of vendors from the comfort of a computer chair, it’s also a snap to find the best deal by allowing certain shopping sites to sift through all of the sellers.
Prices Often Lower
E-commerce also has other advantages. Employee overhead is virtually nonexistent, and the cost of operating a website usually is nominal, especially when compared with the cost of storefront property. To top it off, most transactions are handled by software processes, never requiring a real person until the item is ready to be packed and shipped. This translates into real savings to the customer. As a result, physical businesses often cannot compete with their online counterparts, although consumers do have to watch for inflated shipping fees that might negate the savings of buying online.
