A Detailed Definition of Business to Business E-commerce

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B2B and B2C are just some of the many terms that float around the business world. However, unlike the others, these two terms will dictate the type of products and services you will end up selling, the kind of customers you will eventually approach and sell your products to and generally how your business operates. In the former, you will be selling to companies, and in the latter, you will be selling to consumers. In this article, we’re going to focus on B2B businesses.

What is B2B and what does it mean?

B2B stands for business to business. It is a term which refers to companies which sell products and services to other companies instead of consumers or end users. B2B can include everything from office furniture to invoicing software. Physical products, digital good and services can also be included here.

Different types of B2B Businesses

As we mentioned earlier, there are different types of B2B businesses. Many of them vary in the way they operate and of course the goods and services they sell. Let’s look at the different types of businesses.

Product based B2B business

This type of business focuses on selling physical goods that one can hold in his hands. Office supplies stores and business card manufacturers are just some of the many examples around. Unlike B2C businesses, B2B product based businesses usually sell different products to both cooperations and final users. Restaurant vendors like Starbucks store and hotel supply companies like American Hotel Register Company fall under this category.

Service-based B2B businesses

This type of businesses focuses on selling different services to other businesses. Unlike product based b2b businesses, this option is usually considered to be very competitive simply because many businesses are in it. Examples include graphic designers, lawyers specializing in business law, call answering services and marketers or marketing agencies.

Software-based B2B Businesses

Software-based B2B businesses normally involve subscriptions to software that offer solutions to different business needs. These can fall under products or services. Common examples of software-based b2b enterprises include invoicing software like Freshbooks, CRM software like Salesforce and Social Media contest software like ShortStack.

Unlike the others, this particular business option is usually considered to be the most profitable and easy to run since it involves automating nearly all the processes and only getting involved in situations that require human handling, e.g. making deliveries of products bought through the online system.

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