subject: Different Businesses [print this page] Different Businesses Different Businesses
Different Businesses
Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. Contrasting terms are business-to-consumer (B2C) and business-to-government (B2G).
The volume of B2B (Business-to-Business) transactions is much higher than the volume of B2C transactions because it is a typical supply chain. There will be many B2B transactions involving sub components or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer.
B2B is also used in the context of communication and collaboration. Many businesses are now using social media to connect with their consumers (B2C). When communication is taking place amongst employees, this can be referred to as "B2B" communication.
The term "business-to-business" was appeared to describe the electronic communications between businesses or enterprises in order to distinguish it from the communications between businesses and consumers (B2C).
Today, many professional institutions and the trade publications focus much more on B2C than B2B, although most sales and marketing personnel are in the B2B sector.
Business-to-consumer (B2C) describes activities of businesses serving end consumers with products or services.
While the term e-commerce refers to all online transactions, B2C stands for "business-to-consumer" and applies to any business or organization that sells its products or services to consumers over the Internet for its own use. B2C has grown to include services such as online banking, travel services, online auctions, health information and real estate sites. Peer-to-peer sites such as Craigslist also fall under the B2C category.
Shoppers have continued to flock to the web in increasing numbers. In fact, North American consumers adopted e-commerce so much that despite growing fears about identity theft, they spent $172 billion shopping online in 2005, up from $38.8 billion in 2000.
According to marketing terms B2C businesses played a large role in the rapid development of the commercial Internet in the late 20th century.
Business to Consumer e-consumer quickly developed as an alternative way for companies to sell more products to a larger market. E-commerce provided not only multiple advantages to a company but also to the consumers.
By using B2C commerce they can instead showcase all of their products on the internet which reduces the cost of transaction. B2C also allows their customers to better access information about different product and sellers which broadens the selection available to their customers.
