“Business for business” (“B2B”) ( eng. “Business to business” - Russian for “business to business” , abbreviated as “bi to bi”) - a term that defines the type of information and economic interaction, classified by the type of interacting entities , in this case, these are legal entities that work not for the end ordinary consumer , but for the same companies, that is, for another business .
Content
- 1 Description
- 2 E-commerce in the B2B system
- 3 B2B and B2C - what is the difference
- 4 Integrated B2B E-Commerce
- 5 See also
- 6 notes
Description
In Western countries, the term "B2B" is often understood as any activity of some companies to provide other production companies with accompanying services, as well as goods and services intended for the production of other goods ( raw materials, energy, R&D, means of production, etc. ). This field of activity is focused on obtaining benefits ( profits ) from the provision of services or the sale of goods, where the “objects” are services or goods , and the “subjects” are organizations that interact in the market field. Here, organizations and (or) individual entrepreneurs act as the “seller" and "buyer" of services or goods [1] .
The term "B2B" is opposed to the term " B2C " ( Eng. "Business to consumer" ), i.e. business aimed at the end consumer. For example, if a company sells goods directly to the final consumer of the goods (supermarket chain, car dealership, etc.), then this company belongs to the B2C sector.
The volume of "B2B" transactions (transactions) is greater than the volume of " B2C " transactions [2] [3] [4] .
B2B E-Commerce
To date, the widespread use of e-commerce tools in the B2B system.
Compared to traditional electronic data interchange systems (EDI), designed to work within the internal network of an enterprise, working with B2B in many cases is more profitable, especially for companies wishing to establish contacts with small consumers and suppliers, but unable to support complex and expensive EDI technologies . So, for example, in the USA the number of such small companies is almost 7 million, and their share in the country's GDP is about 50%. Having no means to use EDI and other expensive extranet systems, B2B enables small businesses to compete with larger firms. [5]
The B2B platform combines solutions for suppliers and customers, integrating them into a single system based on a central portal. Depending on the type of trading platform, a number of important aspects necessary for successful work should be taken into account:
- accessibility for new members;
- scalable and reliable platform (the appearance of new participants or other reasons should not affect the functioning of the site);
- information management (the use of high-quality information, as well as its timely updating is the key to success);
- integration capabilities (for the convenience of users, the site should include all types of electronic commerce);
- security;
- analytics;
- additional services [5] (for example, auctions or other financial services).
The main disadvantage in this system of doing business will still be the high price for creating and maintaining a B2B platform.
B2B and B2C - what is the difference
The fundamental difference between these models is the buyer. In the B2B model, it is an organization, company, enterprise, holding, legal entities, concern, company. In the B2C model - private individuals, individuals, end users.
But there is another factor indicating the difference between the types of trade relations. His understanding contributes to the successful sale of products and services.
In B2B, goods are purchased for the purpose of further work, that is, for business. Typically, companies buy raw materials or supplies when it is impossible to do without them. When choosing a supplier of a product or service, company managers are guided by the closure of basic professional needs and low prices.
There are also such differences between B2C and B2B as the possibility of impulsive buying for the former versus buying rational for the latter. Short-term customer relationships versus long-term. Fixed prices for retail versus special prices in accordance with the purchase conditions for wholesale customers.
B2B Integrated E-Commerce
Thanks to integrated e-commerce, part of the software solution is installed inside the ERP server system or another electronic database for accounting, warehouse, production accounting. This means that the connection between the business logic and the server system database is automatically configured. Information available in the database, for example, articles, prices and availability of goods in stock, is used without copying to another system and is displayed on the web resource for users. Thus, an integrated software solution for e-commerce does not require investment in the reconstruction and maintenance of a separate database or business logic. Instead, the server system data is reused, and most of the data is stored in one place (the exception may be files with a lot of weight, such as videos, photos, etc., which are stored on the hosting to speed up the web resource).
See also
- Business model
- B2C (Business-to-Consumer) - the relationship between the organization and the consumer
- G2B (Government-to-Business) - the relationship between government and business
- B2G (Business-to-Government) - the relationship between business and the state
Notes
- ↑ Business to business (B2B). "Notes marketer" // marketch.ru
- ↑ Sandhusen, Richard. Marketing - Hauppauge, NY: Barron's Educational Series, 2008 .-- P. 520. - ISBN 0764139320 .
- ↑ Shelly, Gary. Systems analysis and design. - Boston, MA: Course Technology, Cengage Learning, 2011 .-- P. 10 .-- ISBN 0538474432 .
- ↑ Garbade, Michael. Differences in Venture Capital Financing of US, UK, German and French Information Technology Start-ups A Comparative Empirical Research of the Investment Process on the Venture Capital Firm Level. - München: GRIN Verlag GmbH, 2011 .-- P. 31. - ISBN 3640893166 .
- ↑ 1 2 Business on the Web | ComputerPress . compress.ru. Date of treatment April 21, 2016.