?B2B is also known as business-to-business. This is different from the usual paradigm
i.e. B2C (business to customer) with which we are acquainted with. The concept is
complex, but in here, we shall be sticking to the basics and the most lucid of the
explanations. The concept of B2C and B2B can be explained with the help of suitable
examples. Suppose one needs to buy a bag. He or she will go to the nearest shop of
his or her desire and buy a bag. The relation is between the business and the customer.
This is the B2C business model.
Now reflect on the following scenario. It is agreed that you are buying something (in
our earlier example it was a bag) from a shop of your choice. However, have you ever
wondered the source for the shop? In other words, have you ever wondered how the
shop can procure all the items needed for its normal functioning? B2B comes into
play here. If you are buying the bag from a departmental store, chances are high that
they will be having a supply of shops throughout the country. In each of these shops,
the same model bag will be made available, because they always resort to bulk
purchasing and distribution.
Large volume of business: This keyword helps in the functioning of B2B. B2B portals
are portal with the help of which one will be able to realize large volumes of business.
When you visit a website, you will be ordering only one item. Consider someone who
is representing the earlier mentioned departmental store visiting a B2B portal. If he is
genuinely interested in the product, he will give a bulk order for the same. Many
manufacturers are still in business just because they opted for the B2B business model
with the help of which they will be able to deliver bulk orders.
The examples are in plenty in the niche. Anything ranging from automobiles to air
conditioners is all manufactured using the concept of B2B. Automobiles or air
conditioners are made from different parts that are produced by different vendors
from whom the parent company is procuring at lower rates according to the B2B
strategy. Once the finished product is made fit for the market, then it is B2C that
comes into play because a customer will be buying one of these.
B2B portals are widely helpful for industries that are searching for newer entrants in a
particular niche of business. This portal will act as a directory where one will be able
to find the relevant details of any manufacturer. In fact, bulk manufacturers are known
to enroll themselves in these portals so that they are able to attract more business.
These manufacturers will be selling their products at a rate that is usually lesser than
the prevailing market rates. Fierce completion in this field is a usual phenomenon. At
the end of the day everyone in the loop is kept happy.