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Choosing Business 2 Business Model for Your Startup

The Definition:
In the internet world, Business to Business is known as B2B or e-biz and is the exchange of products, services or information between businesses rather than between businesses and consumers. Business to business also refers to business that is conducted between companies, rather than between a company and consumer.

This is in contrast to business to the consumer (B2C) and business to government (B2G).

Examples:
One example to illustrate the business to business product concept is car manufacturing. A vehicle’s components are usually manufactured independently, and the car manufacturer needs to purchase the parts separately. A business from elsewhere will sell these car components directly to the car manufacturer.

Business 2 Business

Another would be an office equipment business. They will sell their office equipment to other companies who wish to upgrade their existing furniture or need more supplies of office equipment.

And a third example is an IT company who sell their computers and systems to schools, universities and hospitals.

Looking further:
B2B ecommerce is sometimes seen as more complicated; negotiating contracts, setting customer specific price levels, and a whole array of other company specific criteria, than B2C ecommerce, but it is a great system to grow your business in dramatic ways.

Choosing the right business model (B2B or B2C) for your start-up is something nobody can tell you except for yourself. Seeing advice from others can be utterly confusing and can be a complete waste of time. You could ask five business owners their opinion and you will likely end up with ten different ideas as your answer.

Choosing B2B:
There many advantages of having a B2B website over a B2C:

    Immediate feedback – Businesses won’t sugar coat any feedback. Straight off the bat they will tell you what their problems are, what they think of your service and what they will be for.

    Acquiring customers is much easier because you know exactly who they are, how to find them and what they are generally willing to pay. You can approach companies face to face using traditional route of direct sales and marketing.

•    Profitability – One of the biggest rewards from being in B2B is the almost immediate market validation. You can persevere until people pay you money. Another perk is that B2B businesses can establish their operations in any place deemed appropriate compared to a B2C business requiring a place in an accessible and central part of town.

At KOL Limited we offer bespoke and comprehensive B2B Ecommerce solutions with a budget to match your needs.

 

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