What is Ecommerce or Digital Business and How Will it Work in the B2B Dynamic?

19th May 2022

We are all very familiar with ecommerce sites. Want to buy a new set of garden furniture? Just look online, we all have experience with the process.

There are a variety of models in ecommerce:

Consumer to Consumer (C2C): If the product is second hand, it is a C2C model. The buyer can be more tolerant regarding the speed of delivery, they understand the goods are second hand and expect a ‘used’ quality and they are trusting the seller’s description. They also understand that the returns policy only applies to their consumer statuary rights, rather than them changing their mind.

Business to Consumer (B2C): B2C is where businesses sell their products direct to consumers. Consumers who buy from businesses tend to prefer speedy deliveries, are heavily influenced by marketing and media promotions, often buy on impulse and require an efficient return and refund system.

How about Business to Business (B2B)? This model has an entirely different dynamic. We are talking about purchasing, paying, and organising the shipping details all online, and I am not talking about one set of garden furniture, I am talking about 1000’s. Or hundreds of tonnes of steel bars to be shipped around the world in shipping containers etc.

So, what are the Pros and Cons of B2B?

For the seller:

• You can market your product to any interested buyer across the whole world
• Your products will be promoted and on sale in any time zone 24/7/365
• Products can be purchased and paid online, but also through the traditional methods.
• All the relevant information can be given on the product website page such as specifications, quality assurance certificates, test certificates, HSDS sheets, Harmonised System codes and information regarding the import formalities into a specific country
• Estimated delivery dates can be displayed.

All of this can take place without the buyer and seller talking or exchanging emails. Of course, there must be communication but that too can take place on the digital ecommerce platform.

The buyers in B2B ecommerce tend to be more discerning, basing their decisions on the business needs, such as:

• Country of origin (preferential trade markets)
• Estimated shipping dates
• Price
• Quality and standards
• And of course, they are able to have a much wider selection of potential global suppliers.

What about the trust regarding product description and specification, delivery performance, returns policy etc? Well, if you think about it, that does not have to change too much from the current model. Payments will be sent through the ecommerce platform, security of payment, letter of credits, deferred payments and prepayments can all be managed through the systems as well, but also through the traditional system, outside of the ecommerce platform.

If you want to know more, Sheffield International trade Centre and Sheffield Chamber of Commerce have teamed up with one of the largest B2B ecommerce sites in the world. Alibaba Europe and WorldFirst are coming to Sheffield on 29th June 2022 for a Global Trade event. This will be face-2-face, where a full appraisal of the pros and cons of B2B ecommerce will be explained, discussed and questions answered.

Thank you to Kranlee Logistics and Worldfirst for sponsoring this event.