<first>What is Business-to-Business (B2B)?<first>B2B or (Business to Business) is a form of business transaction between one company and another, such as a manufacturer and wholesaler, or a wholesaler and a retailer where each party to the transaction benefits in some way and may have the same negotiating powers. Such as the transactions in the supply chain, where one company purchases raw materials from another to use them in the manufacturing process. We can commonly find B2B transactions among the companies operating in the auto industry, property management, housekeeping, industrial cleanup, etc.
<first>What is a B2B Company?<first>B2B companies are the organisations that offer the products and services that are required by other businesses to operate and grow. Raw material suppliers and consultancy companies are a couple of examples. It stands in contrast to the business-to-consumer (B2C) business model, where the companies sell their products and services directly to individual customers, and consumer-to-business (C2B) models, where customers offer their services to a business (such as customer reviews or influencer marketing). The target audience of B2B companies includes other companies in the market which need their help to operate and expand their business.
<first>Example of B2B Business Model<first>B2B Business model is a significant contributor to the industry and commerce. This business model is the backbone of the automobile industry. Many vehicle components and spare parts are manufactured by independent suppliers and later purchased by auto manufacturers to assemble the automobile. Several B2B companies also provide various services to businesses to help them facilitate their business operations. For example, consultancy firms, talent acquisition companies, etc.
B2B business model has become common in the e-commerce industry. Several B2B businesses provide services like website development, digital marketing, email marketing, content creation, etc. to other e-commerce companies.
For Example, Fynd Platform being a B2B brand provides website development services to small retailers, brands, and SMEs. It allows businesses to create their ecommerce website at an affordable rate and with several features like delivery assistance, payment gateway integration, user and API documentation, marketplace catalog generation, data insights with tracking and analytics, etc.
<first>B2B Ecommerce and latest trends<first>With the changing demographics of the B2B buyers, the B2B brands are increasingly looking into digital means to boost their sales. Before the Covid-19 pandemic, the B2B buyers primarily included the members of Generation X. However, at present 73% of millennials are involved in the B2B buying process. As per a report, B2B buyers conduct approximately 12 online searches before purchasing from their chosen brand. Around 50% of B2B companies adopt blogging as a marketing strategy, whereas 40% prefer email and social media marketing. Digital marketing has taken the place of print ads and brochures.In a recent report by Mckinsey and Co., they reported that 66% of B2B Businesses consider ecommerce solutions to be essential compared to 48% in the pre-COVID times.
While most of the B2B leaders have accepted the need for a shift to digital channels, the substantial increase in the use of digital and ecommerce media implies that the companies need to be attentive and thoughtful in enabling effective digital strategies. In this dynamic environment, B2B leaders need to have a clear view of what their customers are looking for and how they can cater to their needs.