What is B2B Platform?

History

E-commerce, also known as electronic commerce or e-business, is the exchange of goods and services via electronic communications. Although the public has only recently become familiarized with e-commerce, it has been in existence for over 30 years. There are various types of E-commerce. Here are the two types of E-Commerce: business-to-business (B2B) and business-to-consumer (B2C).

In B2B Businesses, business is conducted with suppliers, distributors, and other partners via electronic networks. Companies sell products and services to consumers in B2C. Although B2C is more widely known, B2B is the form that dominates e-commerce in terms of revenue.

The difference between B2B and B2C

B2B and B2C e-commerce may look the same, they are not. Business buyers and retail consumers have different purchasing needs.

The differences are shown below:

Business to business (B2B) means a situation in which one company sells or provides products and services to another company. This connection might exist between a manufacturer and a wholesaler or between a wholesaler and a retailer. For instance, a business-to-business relationship exists when one company supplies raw materials for the production of another business.

B2B e-commerce is the use of electronic channels and portals for business-to-business commercial transactions, such as online ordering and processing of goods between retailers, distributors, manufacturers, and wholesalers.

A B2B e-commerce platform is software that facilitates business-to-business transactions. It accomplishes this by supporting core B2B commerce features such as display, transactions, payments, deliveries, and auditing trails.

Why is B2B important?

B2B is significant because, to start, run, and expand, every business needs to purchase goods and services from other companies.

A B2B company can increase sales with a smaller number of high-value agreements, which may require thousands or even millions of individual sales.
B2B customer loyalty is likely if they are satisfied with the product and service.
B2B companies can target enterprises across many industries and geographies, resulting in a big playing field. They can specialize in one industry, such as textile or leather, and become leaders in that field.
B2B e-commerce tools make the sales process efficient for sellers, they accelerate the process for buyers. Integrated systems enable the transacting companies to sync data across channels, automate fulfillment and inventory updates, and manage complicated orders.
B2B firms promote and conduct business online, making it simple for clients to place large orders through an efficient digital transaction mechanism.
B2B is sourcing materials for their production process for output (example textile manufacturer purchasing cotton), i.e. providing raw material to the other company that will produce output.
To re-sells goods and services produced by others (example a retailer buying the end product from the garment manufacturer).
Increase the effectiveness and efficiency of a company’s sales efforts. Orders are received digitally rather than manually by human assets via telephone or e-mail, reducing overhead costs.
Communication between businesses happens regularly so sellers are more informed about their customers’ needs.
In most B2B business models, each organization benefits in some manner and generally has similar negotiation strength.

Types of B2B companies

There are various forms of B2B businesses, including the following:

Producers: design, create and manufacture their own products. Producers may sell their products directly to businesses or indirectly through retailers or resellers.
Retailers and resellers: sell products and services made by other companies directly to businesses. Retailers and resellers may sell online, from physical stores, or both, including B2B e-commerce vendors.
Agencies and consultants: provide advice, oversight, and subcontracted work to businesses. For example, a website agency designs and builds a website and mobile app for the same brand

B2B Platform Features

Here are some features to look for in a B2B platform:

Volume discounts
Bulk ordering
Personalized offerings
Easy and quick reordering
Flexible digital payment options
Contract pricing and catalog
Restricted access control
Portal customization
Shared shopping carts
Ability to sell internationally
Corporate Account and Product information management

B2B platform in Ethiopia

Ethiopia is a developing country with a rapidly growing market for e-commerce and online shopping.

According to research conducted by the Ministry of Communication and Information Technology (MCIT), e-commerce in Ethiopia earns $60 million per year and has a 31 % annual growth rate.

The status of e-commerce in Ethiopia is that small enterprises are not progressing due to shortage of the required infrastructure, financial capacity and manpower and use of ICT to the benefit of the enterprises. If Ethiopia works on the barriers of it, then it has the opportunity to increase its revenue through e-commerce industries that vary rapidly. Web economy can then take a lot of meaning in Ethiopia. With this speedy growth of the internet, E-commerce is about to play a vital role in the country’s development.

Example of B2B platform

Manufacturing companies frequently conduct business-to-business transactions and maintain large corporate accounts.

B2B transactions are the lifeblood of the apparel industry. Textiles, leather, and various accessories, for example, are typically manufactured by various companies and sold directly to garment manufacturers.

Amrach.net is a B2B platform that connects textile, garment, finished leather, and leather products manufacturers. It brings manufacturers together on a single platform, bridging the market information gap, and digital transactions improve buyer and seller convenience.