B2b Commerce Advantages And Disadvantages

Once a decision is made to develop a business, whom the customer will be is the next decision to be made. Whom will the company target as a customer? Will it be a business? Or will it be a consumer? Business-to-business (B2B) marketing has differences from business-to-consumer (B2C) marketing practices. This paper will outline these differences between the two types of e-commerce business transactions.

Many businesses have shown that after implementing an e-commerce system into their companies, sales have increased immensely. Sneaker Joe’s is a small family run business that is looking to expand their business after the sneakers they sell have shown to be very popular locally, after a picture of them was spotted on a social networking site. I have been looking at some of the most popular websites that consumers use to purchase their goods and what kind of commerce system they have in place, but first, I have written an explanation of the different types of ecommerce used today.

e-commerce is all about using the Internet to do business better and faster. Most businesses

Business-to-Business ecommerce refers to electronic processing of transactions such as products/services or information between businesses (Shaw, 2015). It includes electronic data interchange and supply chain management. It also influences the buying decision of customers in that when customers decide on a purchase, they start by checking it

According to Omer Rachamin, the CEO and co-founder of DandyLoop, the global ecommerce market size is estimated to be a trillion dollar market. See Infographic 1.1

The car manufacturer would deal directly with a tire manufacturer to get their product. The different supply channels in this situation would travel from the car manufacturer to the tire manufacturer to the raw supplies dealers. An example of a business to consumer model would include an individual looking to book a flight and hotel in Las Vegas. The supply channels would typically travel through a variety of more channels compared to the B2B model that include the individual, the online store, the airline, the airline staff, the hotel and hotel staff. Another key difference between B2C and B2B has to do with properly integrating technology characteristics. B2B needs to be integrated to their business partner 's software for adequate re-supply of inventory, billing and other elements. This is an aspect that the B2C does not have to deal with since the customer will return to them out of loyalty and satisfaction versus convenience. Using once again an example with a car manufacturer and a tire manufacturer, Mars Auto signs a deal with Firestone tires. Mars Auto must accurately communicate to Firestone in order for Firestone to know exactly how many vehicles are going to need tires delivered for the upcoming weeks, months and years. Firestone will also have to account for the tires received and charge the company accordingly, so the integration of the billing and payments can be transferred back and forth effectively

B2B is one of the major forms of e-commerce. Here the seller and the buyer participate as the business entities.

One of the largest segments of e-commerce is the online retail sector; we believe that advanced technology will lead to a

The retail sector incorporates businesses that sell goods and services to consumers. Over the past couple of years, there have been changes to the industry which has provided favorable returns to some companies but adversely affected the bottom line of others. The retail industry was originally a made-to-order market which would require excessive need of brick and mortar operations. Due to technological advances, the industry has shifted towards a made to stock strategy in order to keep up with consumer demand. In addition, the consumers today prefer to browse through a catalog or through the internet in order to make spending decisions and then wait for the item to be shipped.

It has a complex and longer purchasing process, and the order can be repetitive and stable. It is focus on relationship management, and B2B need to keep that chain of command in mind. It has higher risk than B2C, because the investment sums are much higher. Purchasing the wrong product or service, the wrong quantity, the wrong quality or agreeing to unfavourable payment terms may put an entire business at risk. Since there are more people involved in the decision making process and technical details may have to be discussed in length, the decision-making process for B2B products is usually much longer than in B2C. Companies seek long term relationships as any experiment with a different brand will have impacts

Besides, E-commerce is also considerably fast and means that the business will be more efficient. Furthermore, saves costs, as the business does not have the costs associated with running the business. They do not have to pay for such things as lighting, electricity, and fittings. With ecommerce the user has the ability to search for their product without having to look around shops in a time consuming manner. In fact the information is at their finger tips and can be accessed within minutes without even having to leave your home unlike shopping on the high street.

A steady increase in the popularity of online sales has caused a major push towards e-commerce in the retail industry.

Supermarket e-commerce stores that have altered business practice grow very fast. The popularity of online supermarket increases every year. Keynote’s study (as cited in Hand, Riley, Harris, Singh, and Rettie, 2009, p. 1205) explain that in 2006, the percentage of online supermarkets are higher approximately 35% than previous year. It could be that customers will shop online only in the future if the popularity of traditional stores go down. In addition, many supermarkets such as Walmart, Coles, and Giant are starting to build e-commerce. Online supermarket grow

Business started to grow in IT world with the introduction of internet but it had never been a proper platform for commerce till internet became mobile. E-commerce is now a well established and rapidly growing field and this has

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