Wednesday, 2 January 2013

What is B2B? and B2B VS B2C

Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and business-to-government(B2G). B2B (Business to Business) Branding is a term used in marketing.
B2B is also used in the context of communication and collaboration. Many businesses are now using social media to connect with their consumers (B2C); however, they are now using similar tools within the business so employees can connect with one another. When communication is taking place amongst employees, this can be referred to as "B2B" communication.


B2B vs. B2C

The terms B2B and B2C are short forms for Business-to-Business (B2B) and Business-to-Consumer (B2C). Both describe the nature and selling process of goods and services. While B2B products and services are sold from one company to another, B2C products are sold from a company to the end user.

While almost any B2C product or service could also be a B2Bproduct, very few B2B products or services will be used by consumers. For example, toilet paper, a typical B2C product, can be seen as a B2B product if it is bought in larger quantities by a hotel for their restrooms and guestrooms. However, few people will buy an excavator for their private use.
Most B2B products are purchased by companies to be used in their own manufacturing, producing goods and services to be sold on. The value added product can then be either sold to yet another company; or to the consumer.
Any consumer product would have gone through numerous value-add processes before it is being purchased by the final user. Numerous suppliers from various industries would have contributed to the finished product. For instance, a can of soft drink will require different companies to provide the can, water, sugar, other ingredients, label-printing, packaging, transportation and paint for the printing. The can itself is made from aluminium that needs to be processed and extracted. Only the very last transaction in the sales/ purchase chain is a true B2C relationship.
In terms of perceived risks, a B2B product is commonly viewed to possess higher perceived risks compared to B2C products due to the value of each transaction: e.g. buying a machinery can cost $2Million compared to a tube of toothpaste which would cost just $2. However in reality, risks levels in terms of duty-of-care, can be fairly similar depending on the nature of the product. A faulty machine similar to a contaminated tube of toothpaste can bring grave harm to its respective users. However, because of the quantum of purchase, buyers of B2B products tend to place more focus on the evaluation and selection process.
B2C concerns itself with selling to the end user. Typically these are sites like Amazon, online book retailers,, a "good times" portal. These sites are more interested in passing the goods to the end user. There is likely a slight difference between them and your business. They are actually internet based. That is to say they exist primarily on the internet. Offices and warehousing are borne from necessity of their internet success.
B2B site deals primarily with other businesses, not the general public, a B2C site sells directly to the end user.  B2B sites normally handle a lot more than just sales of products, they are a portal to conduct business transactions.
Whether your business is going to be an e-business or an e-commerce centre is down to the nature of your business. If you require some assistance, simply contact us and we will help as best we can. It is free of charge of course.

"B2B" is contemporary shorthand for a longtime sales practice called business-to-business. Such transactions primarily target companies and other wholesale buyers, while transactions targeting individuals are called B2C, or business-to-customer. Many organizations have both B2B and B2C components, but it's not unusual for a company to specialize in services or sales between businesses. In fact, the vast majority of products and services sold are considered to be of this nature.

One major reason for the popularity of B2B sales and services is sheer volume. An individual customer may visit a clothing manufacturer's website catalog and order two pairs of shoes or a sweater. The buyer for a national chain of clothing stores, however, may order 5,000 pairs of shoes and 2,000 sweaters. Without a business-to-business component, the manufacturer would have lost out on a very lucrative sale. This is why many companies provideB2B options alongside the B2C offerings at their websites and other outlets

What Is The Difference Between B2B And B2C
The major difference between B2B (Business to Business) and B2C(Business to Customer) in internet terms is the role of the B2Bwebsite. B2B concerns itself primarily with supply chain management. These are portals that allow businesses to deal directly with their suppliers and distributors online.  Allowing electronic transfer of orders, invoicing and even payments. Wholesalers, distributors and manufacturers fall in this category. 

B2C websites are intermediary portals to link customers to suppliers. Some of the major ones are ebay, an auction site. Yell, an internet version of yellow pages and ZDNet a technology market place. All of these businesses exist primarily on the internet. They are what is known as e-businesses (electronic businesses). All of them can be classified under one general heading, market places.

What Is B2B Media

Business to business (B2B) media are print, electronic, and video publications. They are designed to go straight from one business to another, however, rather than to an ordinary consumer. These types of productions are different from the media designed to be consumed by either employees or potential customers and can be used for informational as well as advertising purposes.There are many different forms of B2B media. One common form is a print publication, which can take the form of a trade magazine or product brochure. Electronic media is also often used to deliver textual information or advertisements between businesses. Both of these types of print media may use graphics or other visual aids. In addition to text or graphics based media, videos are also commonly produced for the B2B media market.Trade magazines often contain specific information and language that can make them inaccessible to the consumers that will eventually purchase the products or service. Instead of focusing on consumer-friendly sales pitches, trade magazines may provide more technical specifications that insiders in other industries will understand and be interested in. Using trade magazines allows B2B media to target the specific audience they would like to reach and to focus communication on that audience instead of on the general public.

Thanks & Regards.

Er Swati Raghuvanshi [ BCA, MCA ]  
Software Engineer / Webmaster

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