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B2B ecommerce


Sale of services and goods between businesses through online sales portal is referred to as business to business electronic commerce or B2B e-commerce. It is used to improve the sales effort of a company, both in terms of effectiveness and efficiency. Overhead cost is reduced through it, as orders are received digitally instead of manually via human assets, like through e-mail or telephones.

B2B and B2C Difference:

B2B and B2C are two separate business model in terms of the purchasing needs of retail consumers and business buyers. A few differences are listed below:

  • Buying impulsively vs. Buying rationally – B2B buyers make planned purchases along with recurring purchasing, whereas B2C buyers make impulsive purchases.
  • Multiple decision makers vs. Single decision makers – B2B purchases require approval from different management levels and often involve different departments, whereas B2C purchases are made by a single person.
  • Post-Delivery Payment vs. Pre-Delivery Payment – B2B purchases are made under terms and conditions and payment can be made after the shipment is received, whereas B2C e-commerce is paid before the shipment arrives usually through PayPal, debit card or credit card.
  • Diverse Prices vs. Fixed Prices – B2B prices are negotiable, whereas B2C prices are non-negotiable.
  • Punctual delivery vs. Fast Delivery – B2B buyers want the shipment delivered on a particular day, whereas B2C buyers want the shipment delivered as soon as possible.

B2B buyer Qualities:

B2B transactions are dependent on supply chain. Manufacturing companies obtain raw material or component from other companies and after manufacturing the product or merchandise, sells it to the retail customer, distributor or wholesaler. For example, several B2B transactions are made by an automobile manufacturing company, such as buying rubber hoses, windscreen glass and tires for its vehicles. The assemble vehicle is them sold off in a final B2B transaction to the customer. The finished product makes up the supply chain of the distributor or wholesaler.

Both B2C and B2B web store have different features for assisting the purchaser such as search navigation, personal account history page and detailed product descriptions. B2B ordering processes are very much complicated than B2C ordering processes, with back-end systems and huge collection of attributes. B2B purchases are normally made by companies and corporation and several components and products are purchased in large amount to keep the company functioning and running. Therefore large and recurring orders are placed by B2B buyers. And long term monthly or yearly contracts are signed between companies based on their product requirements. Large companies have numerous buying centers which search for the right product and make the transaction deals with the seller.

B2B e-commerce vs. EDI:

B2B e-commerce and Electronic Data Interchange (EDI) are the two methods by which B2B transactions occur. Both B2B e-commerce and EDI share some similarity but they are not the same. The electronic exchange of purchasing information between seller and buyer is EDI. EDI sends the buyers purchase order information to the customer service office or seller’s sale to make a sale’s order conversion. Manufactures place large, recurring order for their raw material supply using EDI. For example, a car manufacturing company needs a certain size and brand of tires for manufacturing a specific car model. The company can place an order for a certain number of car tires required for manufacturing a certain number of cars using EDI. In this way, product information – like description, pricing and images are provided to the seller. 

B2B e-commerce also processes sales order online much like EDI. Customers can occasionally request irregular order quantities from the seller. Also, B2B e-commerce allows customer to view different products and their images. Different models and versions of product are displayed. This allows web store to provide upsell- and cross opportunity.

Integrated B2B e-commerce vs. interfaced e-commerce:

Integrated e-commerce allows the ERP back-end system to install a part of the software solution. This automatically configures connection between database of the back-end system and the business logic. Article number, current stock availability, prices and other information present in the back-end system is leveraged and displayed on the e-commerce front/back end system without being copied. No investment is required in maintaining and recreating a separate business logic or database with an integrated e-commerce software solution. The software solution stores all the data in a single location by re-using the back-end system. Hence errors, synchronization time and redundancy are prevented.

Mobile Commerce:

Mobile commerce refers to “the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology.” Mobile e-commerce is becoming popular as the smartphone industry continues to grow and internet access to the general population is increasing day-by-day. The following elements are the key factors of mobile commerce:

  • Display of product pricing specific to the customer
  • Real-time discount calculation
  • Up-to-date stock indication
  • Customer representation through a sales agent
  • Quick order placement using order lists or histories

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