What is B2B | Learn the Difference Between B2B Sales and B2C Sales
Business to business, also called B to B or B2B, In order to define B2B, B2C has to be defined. B2C is shorthand for “business to customer.” These are two very different business models, B2B, is a type of transaction that exists between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. B2C is business or transactions conducted directly between a company and consumers who are the end-users of its products or services. B2B stands in contrast to business to consumer (B2C) and business to government (B2G) transactions.
In addition to B2B & B2C, There is another division for different types of e-commerce businesses, which includes:
C2C - consumer to consumer
C2B - consumer - business
B2G -Business-to-Government (Business to Administration or B2A)
C2G-Citizen-to-Government (also known as Consumer-to-Administration or C2A)
Of course the best example for B2B Sales is automobile industry. Many vehicle components are manufactured independently and auto manufacturers purchase these parts to assemble automobiles. Tires, batteries, electronics, hoses and door locks, for example, usually are manufactured by various companies and sold directly to automobile manufacturers.
Service providers also engage in business to business transactions. There is some companies just work for others to improve their business. Like Marketing Company or Business Development Consultancy.
On the other hand there are some businesses can be classed as both B2C & B2B Insurance is good example for this case.
Most insurance company activity would be classed as B2C, including car, house & store for individuals. However, property developers, ship owners and big businesses have specialist needs and will employ risk managers to liaise with their insurance companies for keeping the insurance cover at appropriate levels at all times. And this is where the B2B relationships comes in.
The result of the digital revolution is the internet. The internet provides a robust environment for a sector known as B2B e-commerce. By leveraging online platforms, businesses can sell directly to other companies, as well as share data and pertinent information about products and services easily and quickly. When it comes to B2B e-commerce in particular, there are some major categories.
The target audience of many company websites is other companies and their employees. Company websites allow interested parties to learn about a business's products and services and initiate contact. Some company sites sell directly from the site, effectively e-tailing to other businesses. We should notice that company website can serve as the entrance to an exclusive extranet for customers or registered site users, or as an intranet for internal use only.
These sites are hosted platforms that bring buyers and sellers together to facilitate transactions. Participation on one of the sites often provides an efficient way of finding a customer without the expense of building a proprietary transactional website. Types of sites include auctions, sites for local artisans, sites for retailers and wholesalers and matching services.
They’ve known as e-procurement sites, some of this class of websites serve a range of industries, while others focus on a niche market. In fact these are exchanges in which a company purchasing agent can shop for supplies from vendors, request proposals and even make bids for purchases at specific prices. It is just like what http://www.proimexers.com group do for their users. This B2B website provides an environment for businesses to exchange product supplies and procurement.
Specialized or vertical industry portals. Although Vertical portal sites may support buying and selling, but they have a broader purpose than procurement sites. These portals provide a "sub-web" of information, product listings, discussion groups and other features.
Brokering sites. Main purpose of these sites is to act as an intermediary between providers and potential customers that need their specific services, such as equipment leasing.
Information sites. The final category is information sites which provide specialized information sites on specific industries for companies and their employees. These specialized search sites are often used as trade and industry standards organization sites.
We should mention this point that, Many B2B sites fall into more than one of these groups. Models for B2B sites are still evolving.