Characteristics of B2B business model

B2B refers to business-to-business e-commerce. Sometimes I write B as B, but for simplicity, I simply use its homonym B2B(2 is to also). The development of e-commerce includes C2C(Custom to Custom), B2C, C2B and other modes.

What is B2B?

B2B is the abbreviation of business-to-business, that is, business dealings between enterprises.

What is B2B?

B2B is B to B, because the pronunciation of 2 in English is the same as to, so B to B is abbreviated as B2B. B refers to enterprise, because the English word of enterprise is Business, so it is abbreviated as B. Now you should know what B2B is, which refers to e-commerce between businesses. For example, a company that produces color TV sets wants to purchase resistors, publish purchasing information online, and reach a deal with another company that produces resistors. This form of transaction is called B2B e-commerce.

B2B is one of the main forms of e-commerce transactions, accounting for 80% of the total e-commerce transactions.

Characteristics of B2B (Business-to-Business Transaction)

1, the number of transactions is small, and the transaction amount is much larger than B2C and c2c.

Business-customer, supplier, commodity transaction

2. The transaction object can be any product, raw material, semi-finished product or finished product.

Relatively speaking, B2C focuses on consumer goods.

3, trading operation specification

The most complicated (inquiry, negotiation, settlement) and the most stringent (contract, EDI standard).

B2B is the exchange of products, services and information between enterprises through the Internet. At present, B2B based on Internet is developing very rapidly. According to the latest statistics, the transaction volume of B2B on the Internet at the beginning of this year has far exceeded that of B2C. In the next five years, B2B will reach an average annual growth rate of 465,438+0%, and by 2004, the global B2B transaction volume is expected to reach 7.29 trillion US dollars.

Traditional transactions between enterprises often consume a lot of resources and time, and sales, distribution and procurement occupy the product cost. Through B2B transactions, buyers and sellers can complete the whole business process online, from establishing initial impression and shopping around, to bargaining, signing, delivery, and finally to customer service. B2B makes the transactions between enterprises reduce the workflow and management costs of many transactions and reduce the operating costs of enterprises. The convenience and extensibility of the network enable enterprises to expand their activities, and it is more convenient and cheaper for enterprises to develop across regions and regions.

B2B is not only to establish an online group of buyers and sellers, but also to provide a basis for strategic cooperation between enterprises. It is absolutely impossible for any enterprise to realize B2B alone, no matter how strong its technical strength is and how good its business strategy is. The era of going it alone has passed, and the establishment of cooperative alliances among enterprises has gradually become a development trend. The network makes the information flow unimpeded, and enterprises can establish complementary and mutually beneficial cooperation in market, product or operation through the network, form horizontal or vertical business integration, and truly realize a global logistics management model with larger scale, stronger strength and more economical operation.

At present, B2B adopted by enterprises can be divided into the following two modes:

1. Vertical B2B in manufacturing or business. Vertical B2B can be divided into two directions, namely, upstream and downstream. Manufacturers or commercial retailers can form a supply relationship with upstream suppliers. For example, Dell Computer Company cooperates with upstream chip and motherboard manufacturers in this way. Manufacturers can form sales relationships with downstream distributors, such as transactions between Cisco and its distributors.

2. B2B oriented to the intermediate trading market. This transaction mode is horizontal B2B, which concentrates similar transaction processes in various industries in one place, providing an opportunity for buyers and suppliers of enterprises, such as Alibaba and global sources.

B2B is only the beginning for enterprises to realize e-commerce, and its application will continue to develop and improve to meet the needs of enterprises in various industries.