B2B E-commerce Model
Updated On:15-February-2016
Before knowing about B2B E-commerce model you should have a clear understanding on B2B and E-commerce separately. In simple terms, B2B involves commercial transaction between businesses and E-commerce involves buying & selling goods via an electronic network.
B2B E-commerce involves electronic business transactions between companies where both the suppliers and buyers are business organizations. A business entity can connect with their distributors, suppliers, wholesalers via electronic mode. In this model raw materials, manufacturing, wholesaler & retailers are market chains and Government, transportation, communication & banks are intermediaries.
Transaction in B2B E-commerce not only means money transaction but it also includes the exchange of information before buying the products, flow & transformation of goods from raw materials till it reaches the user and service after the transaction is completed. B2B E-commerce makes use of Electronic Data Interchange, internet, intranet, extranet and back end information system integration.
B2B E-commerce is beneficial both for the suppliers and buyers as it increases market competency. It reduces procurement & inventory costs, offers more choices & better pricing, makes logistics efficient and reduces cycle time for the buyers. It reduces sales, marketing & order processing costs, enables to reach more customers & generate revenue and offers better customer support for the suppliers.
The marketplace is controlled by buyer, supplier and intermediary. Hence it can be classified as:-
(i) Buyer-oriented marketplace in which suppliers make use of the platform provided by buyers & it has few buyers and many suppliers.
B2B E-commerce involves electronic business transactions between companies where both the suppliers and buyers are business organizations. A business entity can connect with their distributors, suppliers, wholesalers via electronic mode. In this model raw materials, manufacturing, wholesaler & retailers are market chains and Government, transportation, communication & banks are intermediaries.
Transaction in B2B E-commerce not only means money transaction but it also includes the exchange of information before buying the products, flow & transformation of goods from raw materials till it reaches the user and service after the transaction is completed. B2B E-commerce makes use of Electronic Data Interchange, internet, intranet, extranet and back end information system integration.
B2B E-commerce is beneficial both for the suppliers and buyers as it increases market competency. It reduces procurement & inventory costs, offers more choices & better pricing, makes logistics efficient and reduces cycle time for the buyers. It reduces sales, marketing & order processing costs, enables to reach more customers & generate revenue and offers better customer support for the suppliers.
The marketplace is controlled by buyer, supplier and intermediary. Hence it can be classified as:-
(i) Buyer-oriented marketplace in which suppliers make use of the platform provided by buyers & it has few buyers and many suppliers.
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