B2B refers to business-to-business transactions where customers are other companies; where business-to-consumer transactions refer to businesses dealing with individual consumers or end customers.
B2B transactions are more complex and require more security than B2C e-commerce. B2B transactions involved many complex issues such as systems integration within the company as well as with its trading partners, which raised many questions about the security of the information exchanged, as well as systems that ensured that the information exchange rules and regulations were followed. The cost of installing the infrastructure proved prohibitive and many companies and suppliers reverted to phone or fax, stymied by the costs, unaware that they will be saving tons of money in the long run as operational costs are also drastic Ensure better control over supply chain integration. The biggest hurdle was getting partners to work together to implement B2B networks and set common goals to be achieved, hence B2B has not become as popular as it should have been.
Some differences between B2B and B2C eCommerce:
o B2C offer spot sourcing contract management that offers a flat retail price for each of the goods sold.
o B2B transactions involve direct sourcing contract management that includes negotiation terms that set the price on the basis of which other factors such as warranty coverage, volume-based pricing, carrier and logistics preferences, etc. are decided.
o B2C does not require the company to spend on expensive, extensive infrastructure.
o B2B requires huge expenditures to integrate the organization’s systems as well as the systems of its business partners, which made the process expensive, time-consuming and raised many questions about security etc.
o B2C e-commerce includes only used defined profiles and email promotions.
o B2B e-commerce requires the inclusion of complex questions to examine order history data, such as: B. trading partner preferences, payment records, locations, etc.
o B2C requires sellers to regularly update their website regarding product cost and integrate product catalog with product image and description.
o B2B involves the syndication of catalogs from different suppliers that need to be formatted, priced and presented to buyers in a consolidated form. There is a greater need for business intelligence systems as well as analytics software.
o B2C is much easier as options like cyber cash allow the business to function smoothly.
o Payment options are not that easy in the B2B space which involves back office connectivity, invoicing etc.
o B2B have only one big advantage, namely a good coordination of the supply chain. B2B e-commerce cannot compromise on the time, quality and credibility of its products.
These are just some of the key differences between B2B and business-to-consumer ecommerce.
There are companies that offer both services and products to run the business successfully.