What is B2B?
The majority of small businesses are B2C — business to consumer — businesses. But if you are considering starting a business, then the B2B market can very lucrative and profitable.
B2B means Business to Business. This is the most cost-effective way of bringing buying and selling companies closer around the globe.
The B2B Marketplace
The Internet has emerged as one of the main marketplaces where trade takes place. This is where a lot of buying and selling goes on between brokers, traders, manufacturers, wholesalers, retailers, importers, exporters and various other business communities all over the globe. You can meet clients and make deals, online – without requiring any physical contact, which is one the main advantages of having a B2B business. In other words, B2B trade is carried on in a B2B marketplace.
Your company can use the Internet to find buyers interested in buying your products. Online B2B trade is accomplished when an interested company replies and makes the payment for the product, and your company then delivers the product or service.
Conducting B2B Auctions
In a B2B Auction, a company simply posts details of their products to sell them through an online auction. Instead of offering to directly purchase the product, various buyers make bids for it. There is always a time limit to the bidding process, (e.g. 24 hrs, 48-hrs, etc.). Once the bidding time is up, the highest bidder gets the deal, and the online B2B auction closes when the buyer makes the payment to the company, and the company makes the delivery of the product to the buyer.
One of the main advantages of doing business B2B is that it is often much more lucrative than doing business directly to the consumer market.