Definition
B2B (an acronym for Business-to-Business) refers to a type of business/website/technology which focuses on transactions between businesses, as opposed to business-to-consumer transactions.
Online B2B
| “ | E-commerce is dominated by business-to-business (B2B) sales that are often handled via electronic data interchanges (EDI). Roughly 90% of the value of e-commerce transactions is from B2B. The remaining 10% of transactions are a combination of business-to-consumer (B2C), business-to-government (B2G) and consumer-to-consumer (C2C) activity. Recently, B2C transactions have been growing faster than other segments, but from a low base.[1] | ” |
The Internet makes B2B more effective. It is an extremely efficient mechanism for the exchange of information in light of its pervasiveness and ease of connectivity. Through the Internet, even businesses with different internal computer systems can exchange information without expensive modifications. Small businesses who want to independently develop a viable e-commerce strategy can use B2Bs vendors to achieve their e-commerce goals.
Internet technology affords sharing of an unprecedented level of information about complete activities of customers in the marketplace. Each transaction on the Internet can be tracked in great detail. Participants in any B2B can know, among other things, the identities of the purchaser and seller, the quantities purchased, the date and time of the transaction, and the number of times a specific purchaser looked at the product before making a purchase decision.
References
- ↑ Electronic and Mobile Commerce, at 4.