What is B2B e-commerce?

B2B e-commerce is just defined as e-commerce between companies. This is the kind of e-commerce that deals with dealings among and between businesses. About 80% of e-commerce is of B2B type, and the majority experts predict that B2B e-commerce will keep on rising faster than the B2C type of E-Commerce. The B2B market has two main mechanisms: e-markets and e-infrastructure. E-infrastructure is the architecture of B2B, mainly consisting of the following:

• Application service providers - deployment, management and hosting of packaged software from a central facility (e.g. Link share and Oracle);
• Content management software for the facilitation of Web site content delivery and management (e.g., Interwoven and Procure Net);
• outsourcing of functions in the procedure of e-commerce such as Web-hosting, customer care solutions and security (e.g. outsourcing providers such as e-share, Net Sales, Universal Access and iXL Enterprises);
• Logistics - warehousing, transportation and distribution (e.g. Gamble and Procter);
• Auction solutions software for the maintenance and operation of real-time auctions in the Internet (e.g. Open Site Technologies and Moai Technologies); and
• Web-based commerce enablers (e.g., Commerce One, a browser-based, XML- enabled purchasing automation software).

E-markets are just defined as Web sites where buyers and sellers cooperate with each other and carry out transactions.

Nearly all B2B applications are in the areas of inventory management (i.e., managing order-ship-bill cycles), distribution management (especially in the transmission of shipping documents), supplier management (especially purchase order processing), payment management (e.g., electronic payment systems or EPS).and channel management (i.e., information dissemination on changes in operational conditions).

e-Marketer projects an raise in the share of B2B e-commerce in whole worldwide e- commerce from 79.2% in 2000 to 87% in 2004 and a resulting decrease in the share of B2C e-commerce from 20.8% in 2000 to only 13% in 2004 (Figure 1.2).

Figure. Share of B2B and B2C E-Commerce in Total Global E-Commerce

(2000 and 2004)

Equally B2B development is way further on of B2C development in the Asia-Pacific area. According to 2001 e-Marketer estimation, B2B revenues in the region are predictable to exceed $300 billion by 2004.

Table shows the projected size of B2B e-commerce by region for the years 2000- 2004. 

Table  Projected B2B E-Commerce by Region, 2000-2004 ($billions)