Discuss B2B and B2C  e-commerce with example.

Subject E-Commerce
NU Year Set: 1.(c) Marks: 4 Year: 2013

B2B E-Commerce, or Business to Business Electronic Commerce, encompasses the online – through an online sales portal – sale of products and services between companies. This is as opposed to B2C (Business to Consumer), which describes the online business transacted between a business and individual customers (not a business entity).

Where B2C ECommerce transactions are relatively simple, B2B transactions are much more complex. In B2C, prices are generally fixed, shipping is straightforward, and quantities are low. In contrast, B2B transactions prices are highly variable, relying on a number of pricing variables throughout. Because business is much larger entities (than individual consumers), the volume of products and services are much higher – and have much more complicated shipping requirements. In addition, B2B E-Commerce markets generally have to deal with much more complex tax and regulatory impediments. The complexity of the B2B E-Commerce market makes the solution requirements and implementation processes very demanding.

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