B2B or business-to-business refers to a business selling products and services to another business. It is a form of transaction between corporations involving manufacturers, distributors, wholesalers, as well as retailers. On the flip side, E-commerce or electronic commerce refers to all transactions that occur electronically (that is, online), including buying and selling goods or services on the Internet, and completing sales through the transfer of funds and data.
B2B E-commerce is the abbreviation of business-to-business e-commerce, which is defined as the sale of goods or services between enterprises through online channels. Transactions are carried out digitally, rather than receiving orders through traditional means, which helps to reduce a lot of indirect costs. In a nutshell, B2B e-commerce is the process of marketing and selling products between two businesses online.
Advantages of Using a B2B E-commerce Platform
- Reach New Customers
A B2B e-commerce website with a public-facing catalog page is an effective way to reach potential B2B customers. Identify, locate and communicate with customers we were unable to reach. When we can simply use a B2B e-commerce platform to connect with potential customers, geographic and physical constraints are no longer an issue.
B2B buyers have become accustomed to making purchases online, and they are beginning to look forward to it. Buying online is very efficient, and repeat purchases can be made easier.
- Expand Promotion and Marketing Efforts
With the help of online platforms, everything from product catalogs, price points, and product descriptions is available online and can be accessed at any given time. Customers don’t have to go through the process of waiting for a sales assistant to get in touch with them.
E-commerce platforms are also a great way to use promotional activities to attract and reward customers as well as continue to motivate them to do business with us.
- Lower Costs
With the advancement of technology, almost all aspects of the business can be completed online, from order processing, inventory management, delivery tracking to pricing and collection, everything can be automated with appropriate e-commerce software. In addition, by digitizing internal processes such as pricing, ordering, and checkout, the chance of error is reduced.
E-commerce software can also help us take advantage of data that we won’t have access to if everything is done manually, allowing us to grow the business based on educated insights rather than vague estimates.
Today, B2B customers are looking for the same flexibility as B2C buyers. In other words, B2B buyers want a “B2C-like” experience in their purchase process, which includes a faster checkout process, fast delivery, easy and automated repeat orders, and tracking improvements. In order to meet all these requirements, a B2B e-commerce platform can enhance the customer experience at a higher level, and actively increase the conversion rate to gain profit in the long run.