All You Need to Know about B2B Ecommerce

Speaking of e-commerce, most people often associate this cheap term with the ubiquitous B2C (business to customer) companies like Amazon, Walmart, or Alibaba. However, have you learned that the size of the global B2B (business-to-business) e-commerce market is actually projected to exceed its B2C counterpart? This claim is proven by the 2017 report by Frost and Sullivan, in particular it records $ 6.6 trillion versus $ 3.2 trillion in 2020, respectively. To improve your understanding of B2B e-commerce, this article will reveal all the basics related to this terminology.

What is B2B e-commerce?

B2B e-commerce is short for business-to-business e-commerce. That said, this term refers to the trade of products and services between business parties through online channels.

In partial replacement of traditional B2B sales reps who employ outbound sales techniques (for example, cold calling or social selling), companies are now using Internet-based portals to do business with other organizational customers. In the future, they apply inbound sales methods such as optimized websites, online catalogs, and digital marketing, helping to automatically do much of the sales process.

According to Grand View Research, global B2B eCommerce revenue is projected to grow at an annual growth rate of 17.5% between 2020 and 2027. This upward trend is driven by the movement of consumers from physical stores to platforms. online in recent years. Some obvious incentives behind this act include:

Rapid changes in business trends

In fact, technological advances profoundly affect the traditional way that companies operate. Both multinational corporations and SMEs (small and medium-sized businesses) now go online to reach more potential segments while retaining existing customers.

The popularity of mobile devices.

Along with fast-paced life, people tend to conduct business through portable devices (smartphones or tablets) based on their convenience. This shortens the time to place, manage and process orders.

Reduction of overhead costs

When operating the business, bosses always consider a variety of expenses and accounts payable. It is true that the outbreak of the Covid-19 epidemic in 2020 aggravates the financial problems of several companies when they have to face exorbitant income or labor costs. Therefore, your online presence will eliminate much of your expenses.


What is the difference between B2B and B2C e-commerce?

The main difference between B2B e-commerce platforms and B2C e-commerce platforms lies in who they are primarily targeting. Inevitably, the primary audience for B2B ecommerce platform is always businesses, while B2C businesses aim to serve individual buyers. Two groups of customers differ from each other in terms of purchasing decisions, pricing, or order size. Let's look at several basic comparisons to see how different they are.

# 1. Impulsive and sensible purchases
B2C transactions are considered one-off and infrequent. This means that individual customers can generally change their purchasing decisions and show preferences towards any given brand that gives them some incentives, such as attractive discounts, free shipping, or entertainment commercials. Meanwhile, B2B customers place orders according to their regular needs, so purchases are usually well planned and recurring.

# 2. Single and multiple decision makers
Typically, B2C customers opt for something favorite or something that meets certain needs, such as side dishes for original site daily meals. This decision is made independently and is insignificantly influenced by others.

In contrast, with B2B e-commerce, buyers are involved in a more complicated purchasing procedure that requires the approval of numerous stakeholders or relates to different divisions. Companies now have multiple buyers from different departments or the purchasing center, which is also known as the decision-making unit (DMU). Your duty is to find the right merchandise and make a good deal with the right suppliers. Unlike their B2C counterpart, buying is considered a mandatory part of their job, so they strive to search for products at the most reasonable value. Good packaging may not be the top priority.

# 3. Short and long-term relationships with sellers
The accounts given infer that B2C consumers surely do not establish permanent relationships with providers. This is in stark contrast to B2B customers who are interested in establishing a close partnership with suppliers or distributors. For example, whenever the US-based cosmetics company wants to find some eye-catching packages for skincare products, it will tend to sign long-term win-win agreements with the trusted packaging supplier (e.g. , Berlin Packaging) instead of making spontaneous deals.

# 4. Negotiable and non-negotiable prices
B2C buyers usually buy products at fixed prices. The same does not apply to B2B customers. Prices may change based on deals, quantities, B2B customer portal location, and partnership. Consequently, the company's purchasing center strives to reach the best deal and, at the same time, guarantee the high quality of the products.

# 5. Payment time
In the B2C e-commerce scenario, individual buyers can choose from standard payment solutions, such as credit / debit cards or digital wallets, before delivery. That said, some dealers still allow post-delivery payments if their customers stay in the same neighborhood. For B2B e-commerce customers, your shipment is completed in accordance with prescribed provisions and typically within 30 days after the goods are shipped.

# 6. Supply chains
In a B2B supply chain, manufacturers can import raw materials from other suppliers to make products that are then sold to wholesalers, distributors, and more. Therefore, the B2B chain seems shorter than the B2C, which involves more manufacturers, wholesalers and retailers before shipping finished products to end consumers.

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