What is B2B e-commerce model?

B2B is the exchange of products, services and information between enterprises over the Internet.

Transactions between traditional enterprises often consume a lot of resources and time, and both sales and distribution and procurement occupy product costs. Through B2B transactions, buyers and sellers can complete the entire business process on the Internet, from initial impressions, to three orders, to bargaining, signing and delivery, and finally to customer service. B2B allows transactions between enterprises to reduce a lot of transactional workflows and management costs, reducing the business costs. The convenience and extensiveness of the network allow enterprises to expand their scope of activities, making it easier for enterprises to develop cross-regional and cross-national boundaries, and reducing costs.

B2B not only establishes an online buyer group, but also provides a foundation for strategic cooperation between enterprises. Any enterprise, no matter how powerful it is, or how good its business strategy is, is impossible to achieve B2B independently. The era of standalone competition has passed, and the establishment of cooperation alliances among enterprises has gradually become a development trend. The network makes information accessible. enterprises can establish mutually beneficial cooperation in the market, product, or operation through the network to form horizontal or vertical business integration, with a larger scale, stronger strength, and more economical operation, global operation management is truly achieved.

Currently, enterprises can adopt the following B2B models:

1. Vertical B2B for manufacturing or commerce. Vertical B2B can be divided into two directions: upstream and downstream. Manufacturers or commercial retailers can form a supply relationship with upstream suppliers. For example, Dell Computer works with upstream chip and motherboard manufacturers in this way. The producer and downstream distributors can form a sales relationship, such as transactions between Cisco and its distributors.

2. B2B for the intermediate trading market. This transaction mode is horizontal B2B. It is a place where similar transaction processes in various industries are concentrated, providing a trading opportunity for the enterprise's purchasers and suppliers, such as Alibaba and global resources. B2B is only the beginning for enterprises to implement e-commerce. Its Applications will be continuously developed and improved and adapt to the needs of enterprises in all industries.

At present, enterprises need the support of many systems to develop a perfect B2B system. For example, manufacturing enterprises need the financial system, Enterprise Resource Planning ERP system, Supply Chain Management SCM system, and customer relationship management CRM system, in addition, these systems can be organically integrated to achieve full automation of information sharing and business processes.

From: http://www.enet.com.cn/article/2007/0404/A20070404523764.shtml