B2B electronic commerce is the selling and marketing of products between two online businesses.
It’s simple. Increase customer reach and decrease cost-per-serve to drive higher revenue for your business.
But how does one start a company in B2B electronic commerce? What is the future?
Don’t worry if you’re not familiar with the e-commerce model. This guide will help you understand the process as well as how to create a B2B online e-commerce platform. Also, it will provide examples of successful B2B-e-commerce operations that you can use to inspire your business.
How does B2B Electronic Commerce Work?
B2B is when two businesses sell products and services to each other.
B2B is a completely different business model from B2C which sees businesses selling directly to consumers. B2B electronic commerce involves transactions between manufacturers and wholesalers, or between wholesalers, and retailers, via an online portal.
Innovation and technology have been the driving force behind the movement. B2B business has traditionally been labor-intensive and involved manual sales and marketing. This is where digital commerce can help these companies reduce costs and improve their efficiency through online e-commerce automation.
These are the B2B sellers that we work with
• Wholesalers
• Large retailers
• Organizations like schools and non-profits
• Resellers
Buyers are now able to meet digitally with sellers, placing orders via their smartphones and managing them.
Types B2B E-commerce
You will most likely fall into one of these categories if your business is just starting to do B2B online commerce. Each category has its pros, but many businesses are able to operate in several at the same time.
B2B2C
B2B2C, or business-to-business-to-consumer, sells directly to the consumer without using a middleman. The goods are manufactured by wholesalers or manufacturers. The goods are then shipped to B2B organizations that sell them directly.
B2B2C businesses often offer a digital storefront that showcases their product catalog. The product might not have been created by the business.
Wholesale
Wholesale arrangements allow businesses to purchase goods in bulk directly from manufacturers or distributors, and then offer them to the consumer at retail.
If you are a wholesale supplier, buyers-oriented marketplaces (B2B) can help you market your products to more retailers and buyers. Marketplaces that are buyer-oriented exist when there are many buyers but fewer sellers.
In this situation, buyers set up their own online marketplaces. They invite suppliers and manufacturers for product displays and to accept bids.
Manufacturer
Manufacturers produce large quantities and then sell them to other suppliers, wholesalers, or manufacturers. Manufacturers might also produce shoelaces that are unique.
These shoelaces will then be sold to a luxury shoe manufacturer. They will assemble the footwear and add their branding. You can sell the finished shoes in bulk to wholesalers.
Manufacturers are now faced with the challenge of meeting digital demand in today’s changing world. Manufacturers are attempting to offer greater flexibility for consumers and suppliers as well as wholesalers and suppliers. Businesses will increasingly require manufacturers to allow them to transact online with customized features such as pricing and production schedule.
Distributor
Distributors can ship, package, and market the products, something that manufacturers may not want or be able to do themselves. Distributors are an option for manufacturers who want to sell their products.
Online collaborations can be made between distributors and manufacturers. Through an online platform, distributors and manufacturers can make quick, efficient deals to satisfy customer needs.
As you can see, increasing market share requires high customer service. This makes it imperative to optimize your distribution costs.
Get Your B2B Website Online
B2B e-commerce is a great tool to grow your business and attract new customers. A b2b ecommerce website can help you achieve your goals, whether it’s to create an online storefront or improve inventory management.