Terms and How B2B eCommerce Works

The term B2B is an acronym for Business to Business, and also one of the various eCommerce business models. There are several other than B2B eCommerce business models, such as B2C, C2B, and C2C. It is important to understand the business model that will be followed. Trading strategies can be properly prepared and executed. Below are explanations related to the definition, characteristics, and business examples of B2B concepts.

What is B2B (Business to Business)?
Business-to-business is a business model in which commercial activities or transactions take place between businessmen, from one company to another. This type of business model is often run by manufacturers, distributors, retailers, shippers, and similar businesses.

B2B companies provide or meet the operational needs of other companies to keep their business running. Businesses that use this business model also support all types of businesses that produce goods or services that are supplied to other businesses.

B2B Concepts and How it Works
The concept of business to business is by starting from the relationship between business people who need each other. Each of the related business people already knows each other’s company background.

From the relationship for each company, there is an exchange of data and information, in a B2B transaction. The deal is long-term and has a mutually agreed contract, so that the same service and standards will be created.

There is also how B2B eCommerce works, including the following:

– A company’s demand for goods or services from other companies occurs.

– Other companies provide raw materials for use in production processes or request company operations.

– The negotiation process is held until the contract agreement between the two parties.

– Established cooperation between these companies in order to meet the needs of their end consumers.

– Not all B2B companies target their products to end consumers, some B2B companies only target their products to companies without directly reaching end consumers.