What Is Business-to-Business (B2B) Services: Business-to-Business (B2B) Services is the sale of products or services from one business to another. Is called B2B, or business-to-business, commerce. These transactions can occur between a retailer and a wholesaler. A wholesaler and a manufacturer, or a manufacturer and a retailer. These transactions are different from the transactions between a business and a consumer in B2C commerce.
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KEY POINTS:
- Business-to-business (B2B) markets involve one or more businesses. Buying goods and services from another business for instance a wholesaler selling products to a retailer.
- Such transactions are usually between related parties for instance one firm buying some materials from another firm for processing.
- Some of the areas where business-to-business transactions regularly occur are in auto-mobile industries. Property management services, cleaning organizations, and housekeeping industries.
- Business-to-consumer or B2C transactions are those where a firm engages in selling products and services directly to the end-user or the end consumer.
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Comprehending Business-to-Business (B2B) Services
The business-to-business (B2B) buying is accordant with the supply chain. As it is vital for several organizations to obtain the Raw materials and components required in the production processes. These finished products are then taken to customers via the business to customer (B2C) transactions.
On the facet of communication. The B2B denotes the relations that employees of two companies share, which are often relayed through social media. This type of inter-company communication is called the Business to Business communication abbreviated as B2B.
E-Commerce B2B
Global E-Commerce Market
According to Grand View Research The global e-commerce market was valued at USD 25 billion in 2018. And is estimated to reach USD73 billion by 2022. USD93trillion in 2023 and it is Growing at the rate of CAGR 18% of the year. By 2026, it aims at reducing premature mortality rate by 10 percent. And is expected to have achieved reduction of premature mortality by 9% by the year 2030. Notably, this transformation is informed by substantial changes in the BC consumption patterns. The time-constrained lifestyle, the emphasis on efficiency of the shopping process. And the general trend of ‘buying without leaving home’ has led consumers to embrace digital markets. The wide use of smartphones and tablets has greatly enhanced one significant area: it has simplified shopping from any place, favoring the e-commerce industry.
Real Life Examples of Business-to-Business (B2B) Commerce
The various forms of electronic commerce are Business-to-Consumer (B2C), Business-to-Business (B2B), Business-to-Government (B2G), and Business-to-Consumer-to-Business (B2C2B).
Business to Business interactions are prevalent globally across different business sectors. For instance, Samsung acts as one of the largest suppliers Apple uses for the purpose of assembling iPhones. Apple also has business-to-business negotiations with other firms. Including Intel Corporation, Matsushita Electric Industrial Co Ltd (Panasonic), and Micron Technology among others.
As the automobile industry in particular demonstrates, B2B is a crucial type of transaction. Different manufacturers manufacture and supply various parts to automobile manufacturers. Include tires, batteries, electronics, hoses, and door locks.
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Service providers also engage in business-to-business (B2B) transactions. Some companies focus on management of properties, cleaning services of offices and industries, housekeeping services. Etc, target only the business sectors.
What is E-commerce Market
The term E-commerce Market is a relatively simple one to define. As it refers to the market where all electronic commerce takes place.
Electronic commerce includes all forms of commerce that occur through computer-related tools. Such as buying products and services by using electronic money. However, note that companies operating in the e-commerce environment. Can continue to conduct their business through physical stores.
Common business to business (B2B) products include:
Procurement is occurs where one business acquires goods from another. At a price to reclaim by selling the products to customers. They can even be business application software, or come in the form of shared office spaces.
About Business to Government Transaction or B2G Transactions
B2G transactions consists of exchanging of information, goods or services in exchange for contracts between businesses and the government. The government reviews and awards tenders, then proceeds into a contract..
Conclusion
Most forms of B2B transactions happen in wholesaler-retailer relationships or between manufacturers and suppliers. These are business deals where wholesalers supply markets or other retailers and thereby supply goods to the final consumer. On the other hand, the goods making manufacturers acquire the raw materials from different suppliers. For the production of final goods for end-users. For the last, these costs eventually translate to cost additions to consumers thus making prices higher.
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