B2B and B2C Commerce Matrix in Today's Essay

B2B and B2C Commerce

Matrix

In today's global economy, E-commerce is a dynamic force, encouraging more and more businesses to conduct "business" online. B2B transactions can be a very effective way of bolstering small business, and transforming simple business strategies to complex business partnerships. B2B or business-to-business e-commerce is an efficient and often life-changing move for many small businesses interested in participating in the global market. On the other hand, many businesses have successfully engaged in business-to-consumer or B2C operations for some time, rather successfully, and are looking to expand their influence.

This paper will compare and contrast some of the more obvious differences between B2B and B2C e-commerce. Below is a matrix comparing some of the more common differences between B2B and B2C interactions.

B2B and B2C Overview

Listed below are some of the more common elements that distinguish a B2B from a B2C e-commerce business or industry. Traditionally B2B organization requires more complex relationships, security, analysis of business interactions, web design and greater funds to implement interrelationships within the organization. Once this is accomplished however, there is great potential for income adjustment and improvement in a B2B setting.

B2C ecommerce

B2B ecommerce

Direct sourcing contract management

Volume Pricing

Large upfront investement for business integration

High security costs associated with business

Inexpensive and simple infrastructure

User-defined profiles & traditional online marketing strategies

Requires routine web maintenance to reflect product discounts, prices

Wider variety payment options.

Traditional online marketing strategies.

Flat retail rates for most items sold

Spot Sourcing

Complex processes including order history data collection.

Integration of supplier catalogs.

Large # partners/suppliers

Derived from: Haley, 2005; Lucid Agency, 2011.

Overview of E-Commerce

Traditionally B2B e-commerce has been more expensive to implement than B2C, in some cases cost-prohibitive when compared to B2C services. Many businesses still use traditional business services including phone and fax to communicate because of these factors (Haley, 2005; Levin, 2000). This is because there are many differences associated with B2B. For example, web site structure is often more complex, access rights are more restricted, and security is often tighter when considering B2B business transactions (Wilson 2000, Wise & Morrison, 200). Customer service is professional and highly technical when engaging in B2B transactions. Most business conducted on the web however, is B2C based. This offers maximum consumer exposure at an inexpensive, cost-promoting angle. Website structure for a simple B2C business is often simple, with retail businesses doing quite well while minimizing expenditures operating from the web (Haley, 2005). The target audience for B2C consumers includes anyone that might be interested in the products and services offered by the company. B2B audiences are typically more specific, as a business must target specific industries to succeed.

B2B e-commerce, because of its nature, is highly complex, and therefore…