B2B E-Commerce: Meaning, Architecture & Benefits

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Business-to-business (B2B) refers to a situation where one business makes a commercial transaction with another. It is the inter organisational electronic transaction.The overall volume of B2B transactions is more than double of the volume in B2C segment. Alibaba, Manta, India-mart etc. are the popular names B2B market B2B typically occurs when a business purchase raw-materials for production or  a business needs the services of another, or when a a business re-sells goods and services produced by others

B2B Models

Following are the architectural models in B2B e-commerce −

• Supplier Oriented marketplace (E-Distribution) − In this type of model, a common marketplace provided by supplier is used by both individual customers as well as business users. A supplier offers an e-stores for sales promotion.
• Buyer Oriented marketplace (E-Procurement)− In this type of model, buyer has his/her own market place or e-market. He invites suppliers to bid on product’s catalog. A Buyer company opens a bidding site.
• Intermediary Oriented marketplace (E-Exchange) − In this type of model, an intermediary company runs a market place where business buyers and sellers can transact with each other.

Benefits of B2B Commerce

• Scalability – An effective e-commerce solution will enable your organization to grow and scale easily.
• Improved efficiencies – Through integration to the enterprise resource planning (ERP) and other back-end business systems, e-commerce provides marked efficiencies for B2B organizations.
• More revenue – A new target group also means additional revenue
• Improved brand awareness – Improve brand awareness in the market place
• Analytics – B2B e-commerce provides the perfect platform for an organization to launch a comprehensive analytics campaign

•  Cost reduction through long-term customer loyalty

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