B2B e-commerce
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B2B e-commerce, short for business-to-business electronic commerce, refers to the sale of goods or services between businesses through an online sales platform. It helps improve the efficiency and effectiveness of a company’s sales operations. Instead of handling orders manually through sales representatives, telephone, or e-mail, companies now process orders digitally, which helps reduce administrative and operational costs.[1]
B2B characteristics
[edit]Manufacturing companies obtain components or raw materials from other companies and then sell to a wholesaler, distributor, or retail customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles.[2]
Market development and trends
[edit]The B2B e-commerce market is growing rapidly. In 2014, 63% of industrial supplies buyers made their purchases online. The US market was projected to grow from $780 billion in 2015 to $1.1 trillion by 2020,[3] but recent data suggests that it is even larger. In 2022, just over 10% of B2B product sales, totaling $1.676 trillion, were made through e-commerce websites. This growth trend is expected to continue strongly until at least 2026.[4] The European Union Enterprise policy aims to "enhance trust and confidence" in B2B electronic markets.[5]
In the US, B2B e-commerce is expected to reach $1.8 trillion by 2023.[6] This growth is being driven by a number of factors, including the increasing adoption of cloud computing, the growth of mobile commerce, and the rising demand for end-to-end supply chain solutions.
See also
[edit]References
[edit]- ^ "How Does eCommerce Reduce Business Transaction Costs for a Typical Retail Store?". smallbusiness.chron.com. Retrieved 2019-07-03.
- ^ Kenton, Will. "How Supply Chains Work". Investopedia. Retrieved 2019-09-25.
- ^ Forrester Research (2015-04-03). "US B2B eCommerce To Reach $1.1 Trillion By 2020". blogs.forrester.com/. Andy Hoar. Retrieved 18 January 2016.
- ^ "US B2B Ecommerce Forecast 2022–2026". Insider Intelligence. Retrieved 2023-07-13.
- ^ European Commission, Enhancing Trust and Confidence in Business-to-Business Electronic Markets, Communication from the Commission to the Council, the European Parliament and the European Economic and Social Committee, COM(2004) 479 final, published 14 July 2004
- ^ "US B2B eCommerce Will Hit $1.8 Trillion By 2023". Forrester. Retrieved 2023-07-14.