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What You Need to Know About B2B Ecommerce

© AffiliateSeeking - This article is not allowed to be re-published but can be linked to.

Business-to-business exchange is generally and exchange between two different business entities. These exchanges typically include goods such as electronic equipment, raw materials, and services. Therefore, business-to-business e-commerce, or B2B e-commerce, is an exchange between businesses that use electronic media. Note, however, that it is different from business-to-consumer e-commerce, which is responsible for direct electronic exchanges between business and customers (such as retail).

Business-to-business e-commerce involves both electronic business marketplaces and direct market links between businesses. Suppliers are usually the manufacturers, and the customers are mostly vendors, distributors and retailers.

B2B electronic commerce is entirely dependent on many different information technologies, most of which are available in Internet websites and corporate extranets. Its application involve cataloguing systems, trading systems, exchange and auction, all of which are done electronically. It also includes electronic data interchange and electronic funds transfers. In addition, businesses use the B2B e-commerce systems to handle their relationship between suppliers and customers. Also, their online transaction processing is linked to their computer-based accounting systems to record financial dealings.

Buyers and sellers are usually brought together by infomediaries. Informediaries are those who provide e-commerce marketplaces where auctions, catalogues and exchanges are held.

Therefore, businesses of any size can purchase different products suitable to their daily operations in the e-commerce marketplaces. In the business-to-business e-commerce portals, there are available services such as secured catalog and ordering systems. The marketplaces of B2B e-commerce can also serve as an exchange for purchasing and selling in negotiable prices. Auctions are also available for bidding of excess inventory, overruns and agreements between supplier and customer.

Considering the complications that arise from performing business operations, business-to-business e-commerce makes transactions easier to obtain. It makes purchasing faster, easier and more cost-effective. Prices are available accurately, and products are viewed through the cataloguing system. Industry articles, forum discussions and knowledge are passed among different businesses that use the same products. Thus, product ratings are made available for customer guarantee. Suppliers also equally benefit from the business-to-business e-commerce as well. Through the internet, there is more access for potential customers. They can also work more on their products through customer response placed in discussion forums.

Finally, business-to-business e-commerce is a good opportunity for new entrants of the market. Business-to-business e-commerce lowers the procurements cost of a company. Huge costs are entailed with manual searching for goods and services that are needed for operations. Instead, the availability of the e-commerce marketplace and direct communication between suppliers make operational equipment readily available.

Business-to-business e-commerce is an electronic transaction between separate business entities. Through the use of the World Wide Web media, b2b e-commerce is capable of providing a potential and an existing business to efficiently manage the flow of its goods and services.

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