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Electronic Commerce Model

B2B is the exchange of products, services and information between enterprises through the Internet.


Traditionally, the transaction between enterprises often consumes a large amount of resources and time of enterprises, and both sales and distribution and procurement take up the cost of products. Buyers and sellers can complete the whole business process online through B2B transaction mode, from the establishment of First impression, arrival ratio is three, then bargaining, signing and delivery, and then customer service. B2B enables transactions between enterprises to reduce many transactional workflow and management costs, and reduce business costs. Convenience and extensibility of network Enterprises have expanded their scope of activities. It is more convenient and cheaper for them to develop across regions and borders.


B2B not only establishes a group of online buyers and sellers, but also provides a basis for strategic cooperation between enterprises. Any enterprise, no matter how strong its technical strength or good business strategy, to achieve B2B alone is the end It's totally impossible. The era of solo struggle has passed, and the establishment of cooperative alliances among enterprises has gradually become a trend of development. The network makes information unimpeded. Enterprises can establish complementary and mutually beneficial contracts through the network in market, product or operation. To form a horizontal or vertical business integration to achieve a truly global operations management model with a larger scale, stronger strength and more economic operation。


At present, B2B adopted by enterprises can be divided into the following two modes:


1. Vertical B2B for manufacturing or business. Vertical B2B can be divided into two directions: upstream and downstream. Manufacturers or retailers can form supply relationships with upstream suppliers, such as Dell Computer Company and upstream cores. This is how film and motherboard manufacturers cooperate. Manufacturers and downstream distributors can form sales relationships, such as transactions between Cisco and its distributors.。


2. B2B for the intermediary market. This transaction mode is horizontal B2B, which centralizes the similar transaction process in various industries into one place and provides a trading opportunity for the purchasers and suppliers of enterprises. B2B is just an enterprise implementation At the beginning of e-commerce, its application will be continuously developed and improved, and meet the needs of enterprises in all industries.


At present, enterprises need many common support systems to achieve a perfect B2B. For example, manufacturing enterprises need financial system, ERP system of enterprise resource planning, SCM system of supply chain management, CRM system of customer relationship management, and these systems. Can organically integrate together to achieve information sharing, business process automation.


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