Business to Business Electronic Commerce

Business to Business (B2B) 

B2B describe Commerce between businesses, such as a between a manufacturer and a wholesaler, or between a wholesaler and a retailer. B2B describe a commercial activity as being targeted toward business entities rather than consumers. A B2B directory is a directory that provides a list of firms that provide services targeted strictly to other businesses.

Business to Business (Intranet and Extranet) :- B2B E- commerce is industrial marketing among the process it handles are fulfillment and procurement. As soon as an online purchase is entered and payment is approved through a credit card clearance procedure , a message is generally displayed saying. “Thanks for the order. The amount of Rs. XYZ will be charged to the credit card. The product should reach within 5 to 7 working days”. The movement the message is displayed on the customer’s monitors, an electronic orders is sent to the vendor to fill the order and ship or transport it directly to the customer. Performing this electronically means reduced inventory and quicker service.

However, B2B is more than fulfillment : there is the potential for the internet to become like a central computer system for all industries. Companies can conveniently and quickly check their suppliers’ inventories or make instant purchases. Overhead should decline as Web- drive systems eliminate many of the traditional workers who do the faxing and handle purchase orders. Competing online should also force prices for materials and supplies to drop dramatically. An extranet is shared Intranet deploying E- commerce within the larger community of an organisation, including its vendors, contractors, suppliers, and key valued customers.

Architecture model of B2B E – Commerce 

B2B is the portion of E – business that deals with the interactions between businesses.

These interactions include buying, selling, trading, solicitation and research. The relationship between these business can be that of vendors, suppliers, customers or competitors.

                                                          Fig :- Architecture of B2B Model

In the B2B model, E – commerce is conducted between two businesses. The interaction between the two business parties take place through computer applications. In the model, large amount of transactions takes place between the business parties. The B2B model is gaining popularity because it reduces the cost and streamline the transaction process.

Process of a Transaction in B2B E-commerce

The Process of a Transactions in B2B E-commerce :-

B2B E-commerce e.g., organisation to organization buy – sell, for example India mart, supply chains, vendors.

B2B is the automated exchange of information between different organizations while cutting down on transaction time and associated costs. Today more and more businesses are adopting B2B E-commerce to get serious work done, to link suppliers, factories distributors and retailers directly. 

Also Read :-

B2B involve only firms/ Business trading partners. The includes:

  1. Suppliers,
  2. Distributors,
  3. Dealers,
  4. Vendors and so on.

B2B is the Kernel of E-commerce transactions. B2C E- commerce applications are developing due to wide open economic model of the Internet technologies e.g. Retailing on Word Wide Web.

Buseness find way to keep customers coming back to their stores. The key goal is to optimize the following factors

  • Performance and service efficiency,
  • Personalization,
  • Socialization,
  • Look and feel of the site,
  • Security,
  • Offering incentive to purchase.

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