B2B business model is known as a familiar concept that appears popular in the e-commerce field today. So what is the essence of B2B? What is the role of this business model?
B2B terminology concept
B2B is the abbreviated name of the phrase "Business to Business". This is a form of business and trade between enterprises and businesses. Business model mainly appears in e-commerce, on e-commerce channels. Some cases of complicated transactions will take place on the basis of contracts, product sales quotes and direct agreements of the parties.
The concept of B2B that you need to know.
This business form is chosen by many businesses because of its great advantages that it brings more benefits, high efficiency, higher efficiency and reliability. With the development of the commercial economy, businesses are increasingly using the B2B model of communication. Its specific manifestation is the rise of more and more commercial websites.
According to statistics in the past 2 years, the percentage of websites that are user-centered has not increased. Meanwhile, the percentage of websites directed to organizational units and businesses has increased significantly, from 75.4% to 84.8% and is expected to increase continuously in the coming time.
Not only is it an effective business model, but B2B business model also brings many important benefits to individuals and businesses as well as to the development of the economy in general.
The role of B2B business model
Unlike other business models, B2B has a separate buying process. It saves time, costs, and brings many different cooperation opportunities for businesses.
Because each enterprise in the economy is a small link in the whole economic system. Cooperation with this business will have many opportunities to cooperate with many other business units in the same field and complementary fields. Especially when you create a certain level of credibility with your partners.
Not only that, the business transaction with the business eliminates subjective emotional factors because it brings the benefits of the collective and has a higher logic factor. That is why the efficiency of business cooperation is also higher.
Therefore, when your customers are businesses, ignore the emotional factor, focus on logic, focus on the characteristics and functionality of the product. Especially the direct transaction department.
4 popular B2B business models today
Based on the nature of the business and the type of operation, the B2B business model is divided into the following four main categories:
Intermediate B2B model
Intermediary B2B is a form of transaction model, exchanging between one business and another through an intermediary e-commerce floor. This is considered the most popular model today.
Intermediate B2B model.
You can encounter some websites that are e-commerce floors such as Lazada, Hotdeal, Cungmua, Muachung, ... At these sites, businesses wishing to sell will post their products on e-commerce pages. Buyers will select and buy goods under certain benefits according to the rules and standards of buying and selling on the floor.
B2B model favors buyers
B2B is less common to buyers because nowadays most businesses want to sell their products to the market. But in foreign countries, B2B enterprises that buy favorably are quite developed.
In this type of B2B business model, the business unit will play the key role, importing goods from a 3rd party to quote and distribute products to its customers.
B2B model favors sellers
Contrary to the buying bias model of B2B, those using the sell bias model are more common and also quite popular in today's economy. With this model, a business will own an e-commerce site and provide goods and services to a 3rd party. This third unit can be an individual, a wholesaler, a retailer or a home manufacturing. Normally, the B2B model of the seller favored the distribution in large quantity.
Cooperative commercial B2B model
The last B2B business model introduced by Mona Media is a corporate commerce. It is similar to the intermediate B2B model, but centralized and owned by more entities.
Cooperative commercial B2B model.
This model is often displayed in the form of electronic exchanges such as: net marketplaces, e-marketplaces, Internet exchanges, e-markets Exchange hubs, trading communities, trading exchanges.
Overview of B2B business model in Vietnam
With the development and economic integration, Vietnam is not out of the trend, with the strong development of the B2B business model. Enterprises in Vietnam have built their own website, participated in e-commerce floors to get closer to their customers.
Some prominent floors can be mentioned such as: Zalora, Hotdeal, Cungmua, Tiki, Foody, Lazada, ...
With many unique and attractive sales forms and many interesting incentive programs, businesses quickly approach and receive favor from customers. However, because it is still quite new, the B2B business model is still developing on a small and odd scale, not fully promoting the advantages and potential of B2B models.
In addition, a number of points make the B2B model have obstacles to develop such as:
Communication is weak
The web interface, technical infrastructure is outdated, user-friendly and features attractive to increase user experience.
Interaction between customers and businesses is weak, especially in the process of handling customer feedback.
Lack of transparency in protecting customers' interests, ...
Although there are many limitations, but it cannot be denied that B2B business model is an important form contributing to the development of the economy. In the future, B2B will be increasingly popular in Vietnam.
Right now, if you do not want to be out of date, start building yourself an effective and quality sales channel. Do not forget to contact Mona Media for specific support in building, programming and designing a sales website.
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