B2B refers to business-to-business transactions where the customers are other businesses; where a business-to-consumer transaction refers to businesses dealing with individual consumers or end customers.
B2B transactions are more complex and have a greater need for security than B2C e-commerce. B2B transactions involved many complex issues, such as system integration within the company as well as with its trading partners, which raised many questions about the security of information exchanged and the need to have systems in place to ensure that standards and regulations governing the exchange of information are complied with. Following. The cost of installing the infrastructure proved to be prohibitive and many companies and providers went back to using cost-inhibited phones or faxes, not realizing that they will save tons of money in the long run as operating costs are drastically reduced, as well as ensuring better control over supply chain integration. The main obstacle was getting the partners to collaborate in the implementation of B2B networks, establishing common goals to achieve, which is why B2B has not become as popular as it should have been.
Some differences between B2B and B2C eCommerce:
o B2C offers spot sourcing contract management that offers a flat rate retail price for each of the goods sold.
o The B2B transaction involves managing direct sourcing contracts, which involves negotiating terms that will set the price based on other factors, such as warranty coverage, volume-based pricing, carrier, and logistics preferences, etc. will be decided.
o B2C does not require the company to spend on extensive and expensive infrastructure.
o B2B requires huge amounts to be involved in integrating the organization’s systems as well as those of its trading partners, which made the process costly, time-consuming, and raised many questions about security, etc.
o B2C eCommerce only involves used defined profiles and email promotions.
o B2B e-commerce requires the involvement of complex issues that study order history data such as trading partner preferences, payment records, locations, etc.
o B2C requires sellers to regularly update their site regarding product cost and incorporate a product catalog with a product image and description.
o B2B implies the syndication of catalogs from different suppliers that must be formatted, priced and presented to buyers in a consolidated manner. It has a greater need for business intelligence systems as well as analytical software.
o B2C is much easier as options like cyber cash allow the business to function easily.
o Payment options are not as easy with B2B, which involves administrative connectivity, billing, etc.
o B2B has only one major benefit which is good supply chain coordination. B2B eCommerce cannot compromise on time, quality and credibility of your products.
These are just some of the main differences between B2B and business-to-consumer e-commerce.
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