How B2B Ecommer
How B2B Ecommer
Business-to-business (or B2B) refers to selling products and services directly between two
businesses.
As a business model, B2B differs significantly from B2C, where businesses sell directly to
consumers. B2B ecommerce involves transactions between a manufacturer and wholesaler, or
a wholesaler and a retailer, through an online sales portal.
B2B ecommerce is one of the fastest-growing sales models. Some estimates value the global
B2B ecommerce market at over $12 trillion, taking up 13% of total B2B sales in the US.
Innovation and technology from B2B ecommerce platforms have helped drive the movement.
B2B business traditionally involved labor-intensive, manual sales and marketing processes. The
introduction of digital commerce helps these businesses reduce costs and improve efficiency
through ecommerce automation.
Wholesalers
Large retailers
Resellers
Buyers and sellers can now meet in one digital home, placing and managing orders from their mobile
phones and creating new opportunities for businesses to connect with distributors and suppliers.
A popular example of a B2C ecommerce platform is Amazon. Ecommerce sales happen almost
entirely over the internet, apart from the shipping and delivery processes, so they give sellers
and buyers the comfort and freedom to make transactions at any time and from any place. This
increased ease of both buying and selling online, as compared to traditional sales, has made
B2C ecommerce one of the fastest growing sectors in the global economy and it’s estimated to
make around 6.3 trillion USD in global sales by 2024.
In this guide we will be walking you through the basics of B2C ecommerce, including its types,
benefits, and how its warehouses and order fulfillment work.
Direct sellers
Direct sellers are what most people think of when they hear B2C ecommerce. These are the
online retail stores that either sell products from their own brand or sell a variety of brands. For
instance, Zara’s online store sells products that specifically come under Zara’s brand. Other
stores like Walmart and Costco sell products from all sorts of brands, but they’re still direct
sellers.
Online intermediaries
Online intermediaries are mediators who use their websites to bring businesses and potential
customers together. Online intermediaries do not own any product, service, or brand, and their
only job is to form a path between those who sell and those who buy. For example, Etsy allows
individuals and small businesses to sell their artistic products and services on the Etsy website
under their own individual brands. Customers can then visit the site and make purchases
directly from the sellers.
Advertisement-based
Advertisement-based ecommerce sites also do not own any products or services. Instead, they
sell advertisements for products and services that other businesses own. Over time, as these
sites grow more popular, they start to be referred to as influential websites that promote other
businesses. The Huffington Post and the Guardian are examples of this type of ecommerce
model, where both sites post ads for products and services sold by other businesses.
Community-based
In the community-based ecommerce model, businesses target online forums that are related to
the products and services they sell, and market their products there. For example, Facebook
hosts groups and communities related to specific interests, so businesses can find an
appropriate one in which to pitch what they offer.
Fee-based
Fee-based ecommerce sites charge customers to use their websites, because their products or
services can be directly accessed there. Examples include subscription-based entertainment
service sites like Netflix, Amazon Prime, and Hulu, or sites that offer articles and stories, like
Medium.
💥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.