b2b refers to a business model that exchanges and transmits data information and carries out transaction activities between enterprises through a dedicated network or the Internet; the characteristics of the b2b business model: 1. Few transactions and large transaction amounts ; 2. A wide range of transaction objects; 3. The transaction process is complex; 4. The transaction operations are standardized.
B2B (also written as BTB, which is the abbreviation of Business-to-Business) refers to the exchange of data information between enterprises through a private network or the Internet. A business model that exchanges, delivers, and conducts transaction activities. It closely integrates the company's intranet and company's products and services with customers through B2B websites or mobile clients, and provides customers with better services through rapid network response, thus promoting the company's business development.
Characteristics of B2B e-commerce model:
(1) Few transactions and large transaction amounts;
(2) Wide range of transaction objects;
(3) The transaction process is complex;
(4) The transaction operation is standardized.
Advantages
The implementation of inter-enterprise e-commerce will drive down corporate costs while expanding corporate revenue sources. The following will analyze the four aspects of procurement cost, inventory cost, turnover time and market expansion opportunities.
1. Reduce procurement costs: By establishing inter-enterprise e-commerce with suppliers and realizing automatic online procurement, enterprises can reduce the human, material and financial resources invested by both parties in transactions. In addition, the purchasing company can integrate the company's internal procurement system and purchase from suppliers in a unified manner to obtain discounts for bulk purchases. For example, Wal-Mart connects more than 3,000 supermarkets in the United States through the Internet, conducts unified purchasing and distribution, and saves a lot of purchasing costs through bulk purchasing.
2. Reduce inventory costs: By establishing an inter-enterprise e-commerce system with upstream suppliers and downstream customers, enterprises can determine production based on sales and supply based on production, achieve efficient operation and unification of logistics, and maximize inventory control. For example, by allowing customers to order online, the company's business processes can be efficiently run and inventory costs can be greatly reduced.
3. Save turnaround time: Companies can also establish a unified e-commerce system with suppliers and customers to achieve direct communication and transactions between the company's suppliers and customers, reducing the turnover link. For example, Boeing purchases its spare parts from suppliers, and a large part of these spare parts are used by its customers when airlines repair aircraft. In order to reduce the intermediate turnover link, Boeing established an e-commerce website to achieve direct communication between Boeing's suppliers and customers, greatly reducing the turnover time of spare parts.
4. Expand market opportunities: By establishing online business relationships with potential customers, companies can cover markets that were previously difficult to cover through traditional channels and increase their market opportunities. For example, through online direct sales, 20% of new customers come from small and medium-sized enterprises. By establishing inter-enterprise e-commerce with these enterprises, the transaction costs of both parties are greatly reduced, and the profit motivation of online purchasing for small and medium-sized enterprise customers is increased.
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