Types of B2B Transactions, and B2B Partnerships

Types of B2B Transactions, and B2B Partnerships

Business To Business Model

E-commerce between businesses is the electronic transaction of business to business that takes place electronically via the internet, extranets, or private networks. These are B2B models:

  • Model of direct connection

This model allows different business houses to connect directly with different trading houses to exchange their documents. The IT organization is responsible to track documents, maps, technical support, or translation. Minculete (2013). This approach is efficient as everyone agrees on a single connectivity protocol (for example, OFTP or Rosetta Net) and the community size remains small. This is how B2B was handled before EDI.

  • Network model

Most organizations choose to use a Value-Added Network (B2B) service to avoid the complexity of the direct model. This model allows service providers to use a single connection. Single connections can be FTP, SFTP, or FTPS over a VAN. All business houses will choose the connectivity protocol that best suits their needs. This network service provider allows organizations to exchange documents by facilitating this process. These services are provided by the service provider at a charge.

  • Hybrid model

This model combines both network and direct models. This model allows business houses to connect directly via the internet with business partners. They will perform the highest transaction of their business with the help of one or two protocols. (Minculete (2013)

  • Model managed:

This model allows business houses to outsource all aspects of B2B to an external service provider. The service provider is notified of all required documents via the ERP system.

Types of B2B Transactions

E-business, also known as business-to-business, is the business of exchanging products and information between businesses. It’s not between consumers and businesses. The main goal of these business houses is to increase internet retailing. These types of B2B transactions are possible:

  • Websites of the organization

Websites of companies are considered as target audiences for many organizations. They can also be considered round-the-clock mini-trade exhibits. Some companies sell their products directly through their websites, which is known as e-tailing to other business houses. Kim, 2014.

  • Product supply and procurement exchanges

When a company purchases products through an agent, it can shop at vendors and in some cases can bid to buy goods and services.

  • Portals for vertical or specialized industries

These sites are more focused on the objective than the site of the procurement.

  • Brokering sites

These sites are used as intermediaries between potential providers and those who are looking for a product or service. It is possible to lease equipment. (Kim,2014)

  • Information sites

This site is also called the infomediary site. This site provides information about a company. It is a combination search site or industry-standard organization site.

B2B Partnership

Two tools are essential for small businesses to increase their sales and growth. Each tool required planning. These tools can be used efficiently to increase the success of an organization. The first is mouth referrals. The second is B2B partnerships. The following steps will help the organization to develop a long-lasting B2B partnership.

1. You can find potential partners here: The organization must not ignore its competitors. Partnering with them is a great way to build a B2B partnership. (Gould (2016)

2. Screen and Eliminate: An organization needs to answer all questions when making decisions such as:

  • Does the potential partner already exist?
  • What reputation do they have?
  • Are they financially viable?

3. Recruit: After you have selected the most desirable businesses to partner with, an outline plan for the relationship should be created.

4. It must be written.

5. Develop a relationship.

6. Refer buyers.

7. Partner with us.

8. Manage your relationship