B2b Vs B2c eCommerce: How It Differs From Each Other?
The two important terms, B2B and B2C are popularized by the WWW for commerce and eBusiness sales. B2B means one company is doing business with other company like manufacturers selling to distributors and wholesalers selling to retailers. In this type of business, pricing is based on number of orders. Talking about B2C, it is quite similar, but sellers have to target customer.
Actually, Business-to-Consumer refers to the online selling of products, services or information through companies to consumers for their own use. Difference between two types of business is not limited to their definition, below given are other points that tells how both of businesses are different from each other.
We all know that B2C and B2B are totally different form of eCommerce. In B2C e-commerce, businesses are selling products directly to their purchasers from their website. Purchases browse product information before purchase and pay amount for it before delivery using different payment modes, i.e. a credit or debit card, or other electronic payment mechanism.
Cash on delivery option is also available for those, who want to pay after getting product at home. B2C business system is relatively simple than B2B.
Businesses have to develop a simple website based on business system, if they have to trade low-value products to other business customers and want to take payment with orders. It is must develop a website that is capable of accepting orders in different formats like electronic, email or documents orders.
In B2B E-commerce, it is recommended to incorporate order capture with your other administrative systems like customer records, invoicing, and accounting.
Once, your business reached to an advanced level, online merchant can deliver groups of products that customized to different customers. Appropriate products are selected by the business for showing when a customer logs in.
This simplifies that process for business customers as, they don’t had to explore the entire site to search out the product of their choice. Moreover, it is also best to integrate your business system with the suppliers and logistics partners system to make stockholding, purchasing, and distribution manageable.</p>
Consumers are purchasing your products/services for their personal use. On other side, business buyers are buying products/services for use in their companies. If we are talking about B2B-buying, it is more complex than B2C-buying. There are expert group of members including business, technical, financial and operational departments, making decision about purchasing activity in B2B.
However, the selection of products done by person of any department may not have authorization to purchase or responsibility of making final decision. Purchasing in a bulk may require authorization at board level in B2B-buying.
Talking about the payment terms, if we are looking at Business-to-Consumer type, we find the cost of product remains same for every consumer while in Business-to-Business the price may vary by customer and order type. Purchasers, who are placing large orders or negotiating special terms, have to pay different prices to other purchasers. Additionally, payment mechanisms are also different.
Moving towards B2C transactions, consumers have to select products and pay for them using appropriate payment option like credit or debit cards, checks or cash. A more complex business system us required by B2B transactions.
Purchasers firstly have to select products, place an order and arrange delivery via an agreed logistics channel. Purchaser receives an invoice rather than pay slip that indicates settlement within agreed payment terms. See original source of this post