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Thursday, February 3, 2011

Advantages and Disadvantages of B2B E-Commerce

Advantage
Business to Business is a global trade market, where you can buy anything at any time. Purpose is to save money and good for immediate decision. Suppliers to use the site to respond to buyers comments and send additional catalogs. Use the online link instead of a means to save money buying agency, ordering materials in an efficient, less error and the warehouse inventory to minimize the immediate environment.

Distributors, suppliers, retailers and other partners have formed on the electronic Union customers, products, suppliers, transportation, product catalogs, competitors, supply chain, marketing and sales alliances and business information. This can trace the customer's sales history, product sales history, they can also be the cost and terms of delivery, transport arrangements, inventory location, transportation costs and inventory replenishment of the response time.

Disadvantage
Number of B2B websites as early as 2000, there was an explosive growth. In order to obtain cheaper and faster delivery, it opened hundreds of websites to support the automotive, chemical, pharmaceutical, retail and other industries. E-commerce is not suitable for every business.

B2B is a problem in this type of business will lead to a possible lack of credit. For example, large electronics market owners may deliberately kill smaller competitors transactions. Electronic public bidding itself may lead to dubious price signals.

This process has often happened in the newspaper, telephone and face to face meetings. No one is given to ensure the success of B2B business model. Most sites charge a small fee per transaction as a percentage of revenue. Reason is competition. Moreover, the monopoly of a special service providers and enterprises are building for ten of his own trading platform products and industries.

After finish reading this article what did u think about B2B ? Please share some new information here.



Reference:
B2B电子商务的优点和缺点
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