WHAT IS BUSINESS TO BUSINESS E COMMERCE? 

B2B eCommerce is the selling, buying, and trading of goods and services through an online sales portal between businesses. Since both parties involved are business entities, the transactions are more rational than impulsive. Furthermore, the relationship between the companies involve long-term interests.

Trading online has several benefits such as the expansion of business, the rise in the number of customers, and increased brand-awareness. In this article, we’ll try to cover all the aspects you need to know about B2B eCommerce.

 Basic Models in B2B E Commerce

1. Supplier Oriented Marketplace (eDistribution)

In this type of model, there are many buyers and few suppliers. The supplier provides a common marketplace. This market is used by both individual customers as well as businesses. For the success of this model, goodwill in the market and a group of loyal customers is very important.

2. Buyer Oriented Marketplace (eProcurement)

In this model, there are few buyers and many suppliers. The buyer has his/her own online marketplace. It then invites suppliers and manufacturers to display their products. Buyers search in electronic stores in malls and markets for similar service providing products and compare them.  

3. Intermediary Oriented Marketplace (eExchange)

In this type of model, there are many buyers and many suppliers. An intermediary company runs a marketplace where business buyers and sellers meet and do business with each other.

However, B2B eCommerce enjoys economies of scale and the long-term personal relationships behind each buyer and seller means that the future is clearly B2B.