Business-to-business e-commerce involves online information and product exchange between companies, including marketing, software sales, and data management. The internet has made B2B transactions more efficient and simplified sales and marketing. B2B tasks range from maintaining a website to setting up industry portals. B2B e-commerce is closely related to B2C e-commerce, and companies must make changes to adapt to the growing ease of technology aiding B2B transactions.
Business-to-business e-commerce is any Internet-based information or product exchange between businesses. Also referred to as B2B shorthand, business-to-business e-commerce is a category of business relationship that basically covers all the ways technology helps companies do business with each other. Business marketing via websites, online software sales, IT services, and electronic data management can all be part of the B2B e-commerce equation. Business-to-business e-commerce encompasses only business-to-business online sales and marketing. Interactions with consumers are considered business-to-consumer or B2C exchanges.
The advent of the Internet has changed the way companies compete and participate in the market. The ability to manage information electronically has made many business activities more efficient, and the ease of digital communications has simplified many aspects of sales and marketing schemes. One of the most important changes that the Internet has brought to businesses is the ability to solicit and sell goods and services electronically, and it is this ability that comprises most of the business-to-business electronic commerce.
Business-to-business e-commerce tasks can be as simple as maintaining a website or as complex as setting up specialized industry portals for cyber marketing and corporate contract resources. If the drive is attracting other businesses, rather than attracting customers, the transaction is B2B. As much as companies do business with customers, they also do business with each other. Clothing retailers, for example, do business with manufacturers and wholesalers; advertisers and designers; Website builders; credit card companies; and banks, to name a few. When any of this business is conducted online, it is business-to-business e-commerce.
The growing ease with which technology can aid B2B transactions means that the sales and marketing departments of most service companies are working in the business-to-business e-commerce sector at least some of the time. Much of business communication is electronic, through email or direct web research. While companies relied on phone calls or in-person meetings at regional or national trade shows to make sales, they are increasingly connecting with each other through innovative web presentations and other online communications. Business sales negotiated in person will also likely be made online, especially for services like website building or software installation.
B2B e-commerce is also closely related to and, in many ways, driven by B2B e-commerce. Customers who purchase products online or who view and respond to company Internet advertisements must be confident that any personal information they electronically transmit to the company is secure. Payment and shipping mechanisms on store websites must work properly. Locating a retailer’s website or finding company information on a smartphone is something customers increasingly expect to be able to do. All of this requires companies to make changes to the way they do business – all of this requires business-to-business e-commerce.
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