You are on page 1of 5

B2B - Business to Business

B2B is the selling between companies, wholesale rather than retail. But it means more than that. Efficient use of capital demands small inventories, which entails anticipating demand, and so maintaining detailed information flows between all parties involved in today's complex manufacturing processes. B2B involves widening the circle of suppliers (for safety and competition), and of centralizing control (for records and discounts). B2B ecommerce is an important part of any online business. Leaving aside the simple transfer of funds ² covered here ² many businesses need some combination of: 

     

creditworthiness assessment. guarantee of quality and delivery of goods (escrow services). safeguards against fraud. fast collection of funds, with ability to vary the collection period. reporting: approval of sale, invoicing, delivery, payment. procedures to handle disputes. Information of all types ² corporate, technical, identity-building ² has to be interchanged across the scattered divisions of large companies, and new ideas fostered, assessed and disseminated. Speed is vital, as are improved communication, collaboration, and customer understanding. All these requirements can be handled by IT, and software has been developed to meet the challenge ² customer relationship management, enterprise resource planning, online auction, supply chain management, etc. Little of it is off-the-shelf, but is devised as systems to be extended and built round individual company requirements.

Hence many problems with surveys. B2B has reportedly done better than B2C ² steadier growth, higher profits ² but is it software sales or savings in companies with B2B-enhanced management that have been measured? Even within the B2B market, there are marked differences between types of software and their successes. Records of some are distinctly spotty, and sales of the more advanced systems have been badly hit by the dotcom bust and US recession. Improved management is not simply a matter of installing new software: extensive company reorganization and retraining are required to obtain even a modest payoff. These points need to be borne in mind when following up the information briefly noted below. B2B Ecommerce History An Anderson survey found that America accounted for 67% of worldwide B2B revenues in 2000, and Europe 14%. Towards the end of 2000, a gloomy period for ecommerce in America, executives remained confident about the digital marketplace. Some 45% of suppliers reported an average 31% increase in sales over the previous 6 months, and 66% of customers responding said they had increased purchases over the period. A June 2001 IDG survey came to a similar conclusion, noting that B2B trade in Brazil should near $2 billion in 2003. . Even in the B2C ecommerce slump of August 2001, the larger US retailers were planning to invest in B2B to improve customer service and supply chain management. 2003-4 B2B Prospects Forrester predicted in 2001 that the US would be exporting $1.4 trillion worth of goods through online marketplaces by 2004, and associated easy payment systems were proving their worth in 2001. According to American CRM, customer relationship management expenditures are expected to grow from $5.4 billion in 2002 to $11.0 - $16.9 billion in 2004. Demand is growing for B2B products in midsize US companies, reported Gartner in January 2002. Fifty percent of European firms expect B2B investment to create a 5% productivity growth. IDC forecast a 49% annual growth in Japanese B2B to $504 billion in 2005, but prospects in Asia and the Pacific Rim need careful research. Nonetheless, there are differences between B2B submarkets. Supply chain management is increasingly competitive, and software houses will need to address customer requirements better if they are to survive. Nor has B2B implementation been plain sailing. B2B industry should prosper, but individual suppliers may not.

so acquiring and keeping new customers is difficult. along with other tools such as Yellow Pages. Broadband telecommunications will enhance the buying experience. In addition. Top performers had an 18% conversion rate of new visitors. So the ability to create a unique µskin¶ for each site is an important part of a template-based e-store offering. online shoppers are very price-sensitive and are easily lured away. twice that of the median.5 times the median. Top performers had a revenue per transaction of 2. In addition. should consider an online store. .Business to Consumer B2C (Business to Consumer): Refers to a business communicating with or selling to an individual rather than a company. Challenges faced by B2C e-commerce The two main challenges faced by B2C e-commerce are building traffic and sustaining customer loyalty. many smaller firms find it difficult to enter a market and remain competitive. thanks to developments in templatebased online stores which are based on packaged applications that are delivered over the internet. Offerings and prices can change instantaneously. B2C e-commerce jumped from $11. and naturally retailers feel very strongly about their business branding. Due to the winner-take-all nature of the B2C structure. order baskets. individual sites can be created within minutes of the retailer selecting a template and supplying graphics such as logos. As nearly all online stores will require the same functions: catalogues. newspaper advertising and signage. There was no significant difference in the number of transactions per customer and the visitor acquisition cost. Advantages of B2C e-commerce B2C e-commerce has the following advantages:     Shopping can be faster and more convenient.2 billion in 1999. with each store effectively µrenting¶ its own copy of the applications. payment processing. a web site should be a standard part of the promotional and advertising mix for every business.2 billion in 1998 to $31. retailers will pay only a modest monthly rental charge ± and retailers require no specialist hardware or software. Doing business online no longer requires a huge investment by retailers. Call centers can be integrated with the website. or who wants customers to be able to research their purchases on the internet. it makes sense for those components to be created once and shared by all stores. the top performer had 2. Typically. Top performers had an average gross margin three times the median. other than internet access. A study of top B2C companies by McKinsey[citation needed] found that:      Top performers had over three times as many unique visitors per month than the median.B2C . These days.500 times more visitors than the worst performer. Using the latest internet application technology. content management and member management. Anyone who wants to sell products and services over the internet. The one area where it's important for online stores to differentiate is their look and feel.

or maintain their internal resume.the order is entirely electronic. adaptability to the way you do business today.B2E . . but this term has grown to encapsulate this activity into the B2E definition. The Complete Business-to-Everyone E-Commerce Solution. And. Creative Web Store makes your e-commerce transition easy by providing out-of-the-box integration with your accounting system. For example. Admittedly. but this really has grown to encompass much more. and supervisors are asked to approved the requisition in the event that the total order exceeds preset limits for that particular employee. robust. Many companies have found that B2E technologies have dramatically reduced the administrative burdens with the human resources department. Creative Web Store offers all the customization features you expect from a premier Web store solution. B2E has grown into technologies that allow the employee to access their employee records to update address information. Creative Web Store is a complete Web store solution that integrates closely and easily with Creative Web Store End-to-End E-Business Solutions. and easy-to-use business-toeveryone (B2E) solution. B2E makes it very easy for an employee to requisition a new toner cartridge and printer paper . However.Business to Employee B2E (Business to Employee) E-Commerce generally refers to the requisitioning of supplies by employees for use in their jobs. maintaining employee information has little to do with commerce. shift investments in the 401K plan. This powerful package provides businesses with powerful business-to-business (B2B) and business-to-consumer (B2C) e-commerce capabilities in a single. of course. and flexible deployment options.

which usually focus on B2B and B2C e-commerce schemes. together with VTS.C2B . and show that vouchers. but has only £200 ($320) in the bank to pay for this round trip. The existing EC construction tools. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions C2B is a rather peculiar Internet phenomenon. The beauty of the Internet is that it brings together a large number of customers to create a marketplace that a number of airlines (that will have to otherwise fly with empty seats) will be interested in. can be utilized to form a trading framework that uniformly realizes the delivery/payment phase. to construct these e-commerce systems because of their diverse nature. An example of C2B e-commerce could be the following.Consumer to Business A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. seeking airlines that are willing to offer the transatlantic round trip for £200 or less. were designed for constructing specific e-commerce systems. A student wants to fly from London to New York. They put up an ad in an Internet C2B site. It is a challenging task. We show how the introduction of vouchers simplifies the procedures of C2B and C2C e-commerce. In this paper. we propose a trading model that supports C2B and C2C e-commerce through the use of digital media called ³vouchers´ and the trading system ³VTS´. Many analysts state that C2B and C2C e-commerce will thrive in the near future. . can be integrated into this framework. The consumer reviews the bids and selects the company that will complete the project. however. making them unsuitable for developing consumer-initiated ecommerce systems. in which the characteristics of specific e-commerce systems such as market coordination are implemented. We demonstrate that a wide range of matching phase implementations.

but they tend to be superfluous. Consumers are no longer totally reliant on corporations and are increasingly looking to conduct their own business transactions. B2G (Business-to-Government). Ebay is now considered one of the most successful C2C eBusinesses ever.Consumer to Consumer The introduction of the new economy has helped to create a very individualistic and independent society. Companies using internal networks to offer their employees products and services online--not necessarily online on the Web--are engaging in B2E (Business-to-Employee) ecommerce. 1995-2004). â¼ practically anyone can trade practically anythingâ¼? (Ebay.com. Seek. They are often described as Peer-to-Peer (P2P) (QUT School of International Business. many individuals established online organizations that encouraged and assisted commerce between consumers. C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government--from procurement to filing taxes to business registrations to renewing licenses. G2G (Government-to-Government). C2C applications are any transactions between and amongst consumers (QUT School of International Business. peer-to-peer transactions will continue to grow in popularity and the industry will become highly profitable. Employers can advertise on these websites and potential employees can contact their organization for an interview. it redefined the traditional structure of business by giving small firms and individuals the same opportunity as multi-national corporations. Web-based communication organizations are one final example of a C2C operation. . 2003. p. The company began in September 1995 when Pierre Omidyar decided to establish the first online marketplace (Ebay. the company has continued to grow both in size and popularity. G2C (Government-to-Citizen). G2E (Government-to-Employee). auctions.com ICQ. p. There are many sites offering free classifieds. Consumer-to-Consumer applications are a growing area of eCommerce. p. As online business expands. 1995-2004). Ebay.com is an online auctioning site that facilitates the trade of privately owned items between individuals (May. Other examples of Consumer-to-Consumer applications are service and employment websites such as Monster.com and MSN. and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease.109). eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995. This is evident in Western Australia where the number of small businesses has doubled from 1983 to 1999 (Australian Bureau of Statistics. G2B (Government-to-Business).au. At the forefront of this movement are Consumer-to-Consumer (C2C) applications within eBusiness.C2C . they do provide the facilities for Consumer-to-Consumer exchange. 2001). 2003.com. Sites such as Sastashopping.au and CareerOne. The most famous and successful example of a Consumer-to-Consumer application is Ebay. There are other categories of ecommerce out there. These websites provide a valuable service to consumers looking for jobs. When eCommerce was first introduced.com. xv). Although there is no commercial benefit to the website. The website claims that through Ebay. As a result. 2000. Since that time.com act as a communications medium for peer-to-peer deliberations. xv).