Differences Between the B2b and B2c Sites

Abstract

In past years, the internet and the World Wide Web has revolutionized the way companies conduct business. Today, many companies rely on the Internet to support much of their sales, customer service, back office and supply efforts. Business-to-business and business-to-customer e-commerce is a growing way of doing business and is accounting for millions of dollars in goods exchanged online through the streamlined processes of the internet.

This paper will address and summarize the differences between the B2B and B2C sites. It will analyze also the advantages and disadvantages of each site type and will explain the differences in the supply chain processes within the two sites.

What is the definition of B2B?

"On the internet, B2B (business-to-business), also known as e-biz, is the exchange of products, services, or information between businesses rather than between businesses and consumers. B2B is e-commerce between businesses. An earlier and much more limited kind of online B2B prior to the Internet was Electronic Data Interchange (EDI), which is still widely used "(Whatis.com, 2001, para. 1).

B2B Web sites can be broken down into:

a). Company web sites

b). Product supply and procurement exchanges

c). Specialized or vertical industry

d). Brokering sites

e). Information sites

As the name indicates B2B means businesses that sell to other businesses. It specifically caters one business to another business. It is providing in-house service or e-networks for other businesses to utilize, in order to increase function, marketing, sales, profits, or efficiency. Examples can include: microsoft.com, ibm.com, worldwideretailexchage.org., basically anything targeting business owners, managers, and decision makers.

The major characteristic of B2B supply chain is that companies attempt to automate the trading process in order to improve it. Such approach leads to saving of tremendous amount of time and money.

Through B2B, businesses can buy and sell from one another. In addition, B2B allows businesses to take advantage of technology and convenience to customize and streamline otherwise lengthy supply chain processes. B2B websites serve as a one-stop service, meeting many manufacturers and other types of businesses needs. With B2B e-commerce, inventories can be managed more efficiently, and adjustments can be accomplished within minutes of customer demands.

Companies with a network of suppliers, vendors, and distributors need a fast, efficient way to disseminate information and enable two-way communications to improve its supply chain.

This is done over the web using:

a). extranet sites

b). web servers

c). groupware (e-mail-integrated collaborative software)

B2B specific information flow and supply chain process example:

What is the definition of B2C?

Business-to-consumer is a form of electronic commerce in which products or services are sold from a firm or company to a consumer ((Wikipedia.org, 2007, para. 1). Online intermediaries make up the largest group of B2C companies. Online intermediaries are companies that facilitate transactions between buyers and sellers and receive a percentage of the transaction's value. There are two types of online intermediaries: brokers and infomediaries.

In the case of B2C, businesses sell directly to end customers. Typically, volume of transaction per customer is low but the number of customers serviced is large. In a typical B2C flow of information between business and consumer typically is through the medium of Internet.

A good example of B2C e-commerce, are online stores. Online stores exist either to promote the company and its products and services, or to actually sell the products/services through this virtual store. One of the best examples of an e-store is Amazon.com, which started selling books directly to consumers online and gradually extended to other product categories.

B2C specific information flow and supply chain process example:

B2B and B2C site comparison and its impact on the supply chain

a).