Question

Create a 250 word discussion post that includes a working link to your article as well as the insights you gleaned from the article B2B applies to business buying and selling to each other over the internet and is by far the most significant e-business model.

Answer 1

E-Business is the doing business on the internet. It not only involves buying and selling but also servicing the customers (e-service) and any tasks for intra-business.

Business-to-Business (B2B) is an online business transaction that occurs between two companies in contrast to a Business-to-consumer (B2C) model. The businesses that are involved in B2B model are manufacturers, retailers and a wholesaler. In the B2B model, the goods are sold to an intermediate buyer and not the end-user. For example, a wholesaler orders from the manufacturer and once he receives the goods, the wholesaler might sell them to the retailer.

In today’s digital space, B2B model plays a significant role in businesses. Since the online business transaction is simple, easy, time and cost-saving, it is the most preferred method by business-men. The costs that are significantly reduced through B2B business model are:

1. Search cost- B2B e-commerce model offers a plethora of information about the suppliers, products and the prices. It is the most efficient channel and source of information. It is an online trading community and hence reduces the search cost considerably.

2. Intermediaries are avoided- Since the B2B model involves direct transactions between the suppliers and the customers, intermediaries are avoided and make the transaction simple.

3. Transparency in transactions- Since the transactions involve direct transactions, there is a high level of transparency in the pricing of the products.

The advantages of the B2B model are:

• Efficient means of supply chain
• Quick, simple and cost-effective
• It is a global market which is a great source of information search
• Sales opportunities are created online
• Lowers search cost and time
• Saves considerable amount of time for the businesses