If you’ve heard about B2B e-commerce however still don’t really know what it is, here we offer you the meaning of this concept, likewise known as organization to service, and we provide you some examples.

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The B2B is the acronym for service to company, which describes service designs in which the transactions of goods or the provision of services occur between 2 companies (individuals or not), for that reason, it is generally associated to trade wholesaler, although it can likewise describe the provision of services and intake of material.

Paul Hague, Nick Hague and Matthew Harrison, authors of B2B Marketing: What Makes it Unique define it as: “knowing the needs of other businesses, but knowing that in the end, the need for the items made by them will end up being utilized by consumers people in their homes “, a truth that should be taken into account for the marketing technique.

It began in the conventional economy, with the change in innovation and the look of ICTs, it was part of e-commerce, using electronic payment services such as permissions for charge card or electronic wallets.

After a first effort to establish business models focused on completion customer, pioneering Web business discovered it more budget friendly to attempt to develop service models concentrated on other companies. On the one hand, the computer swimming pool was larger, needed less financial investment in advertising and marketing, and much greater average values per transaction. This explains why it will establish faster than e-commerce directed to the individual client.

Currently, massive opportunities have actually been opened for the advancement of B2B company designs due, among others, to the following reasons:

  • Speed and security in interactions.
  • Reduce of procedure integration and internal interaction: intranets, extranets.
  • Possibility of broadening the scope in which to find partners with whom to team up.
  • Cheaper of pre-sale procedures: virtual meetings, request for propositions, online auction of contracts.

There are numerous benefits of B2B for companies, although it is important to note that B2B and B2C actions can be carried out by the exact same company (both in parallel and sequentially in time), each making up a phase of the procedure sale of the good or service.

  • Time conserving. B2B marketing has the function of creating a brand name image and promoting personal contacts. Although it includes a debt consolidation procedure, if it works, it is much easier to have an existence in the market than to restrict yourself to B2C actions concentrated on the end customer.

Simply put, being prominent or thought about a specialist in a subject makes it much easier to sell without much requirement to disperse efforts.

  • Saving money. Related to saving time, if the B2B work has been done correctly, the favorable brand name image that is created will assist to prevent spending more resources than strictly essential on B2C marketing actions.
  • Customization. As the products and services provided are progressively similar, and there is higher competition, using something various ends up being a market need.

The B2B marketing service serves to place a business in the sector with its own identity, while the B2C deals with emotional components of a more main nature, which are those that run in the end consumer and prevail.

  • Higher billing per customer. While it is true that making a client in B2B is more complex than in B2C, both due to the potential market and the complexity of the need (which means that a purchase can take months), it is likewise real that the turnover is older and tends to be more focused.

Business design. A B2B company model can be, for instance, that of those companies that supply web material to others, either through blog entries, tweets, web positioning work or social networks, promotional websites on the Internet.

Examples:

  • Market. where some business specify their demands for services or items and others provide them or those in which a company does not attempt to communicate with its end client however with distributors, partners, importers or another type of expert buyer.
  • In the standard. An example of traditional B2B includes the automobile production industry. The components of a car are normally produced by various business and the vehicle business purchases them individually “.
  • Email Marketing to companies and experts, permitting them to communicate with their end clients and potential customers. If you do not have an account yet, we invite you to develop one free of charge and without any shipment limitation.
  • E-commerce. Such as the purchase of products and services through the web through safe and secure servers, for example.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.