Business to business e-commerce model

Business to Business e-commerce

Selling stuff online has never been easy therefore focusing on business to business e-commerce can come at a relief. The business to business e-commerce model is specifically fit for wholesalers, suppliers, and manufacturers. The platform that popularized this kind of business model is Alibaba. After failing to find any Chinese products online Alibaba founder Jack Ma created Alibaba. Due to the fact that most manufacturing factories are based in China a lot of business to business e-commerce platforms thrive in China. Some other less known websites are websites such as madeinchina.com and chinastore.com.

Alibaba business to business model

When you go on the Alibaba website you would find manufacturers, suppliers, and wholesalers selling their products to other smaller retail businesses. Let’s assume you are running a cattle farm in Brazil. The best place to find feed for your 1000 cows will be Alibaba.com. Alibaba is good for mass buyers as most of the sellers in the marketplace tend to put a large minimum order. For example, you might find a seller who sells soya beans for only 200 US dollars per metric tonne, but the seller only accepts a minimum order of 100 metric tonnes. This is how the business to the business model of Alibaba functions.

Business to business e-commerce in the services sector.

E-commerce stands for electronic commerce. Which is the exchange of goods and services on the internet? The services sector has benefited greatly from the business to business e-commerce model. For instance, digital marketing agencies can now create e-commerce websites for their business. As a digital marketing business, it would be beneficiary to have your services present on the internet. The internet gave birth to business to business hosting services. Business to business has helped the growth of the services sector. Even the banking sector depends on certain features of e-commerce.