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E-Commerce and E-Business

2.2.2 B2B Exchanges

B2B exchange is an online platform where buyers and sellers communicate, collaborate, and make
business transactions. Unlike B2B marketplace, B2B exchange is used by the people at large. The main
intention of a B2B exchange is to create a site, filled with features that allow members to efficiently
conduct business processes through the Internet.
Features and Benefits of B2B Exchanges
B2B exchange is increasingly becoming one of the fastest growing marketing methods that are used by
companies looking to increase their client base beyond their local markets. Any good B2B exchange
offers direct contact with thousands of potential buyers in a single location.
B2B exchanges help companies in buying, selling, and streamlining their business processes. The
following are the benefits of participating in a B2B exchange:
1. Efficient Inventory Management: Integration of products and services with the electronic catalog
of the exchange will help in effective management of inventory.
2. Better Customer Relationship Management: Ability to have constant interaction through the
exchange allows companies to serve their customers better. The whole ordering process from
payment to delivery can be tracked which helps in building a greater efficiency in customer
service.
3. New Sales Channel: By becoming a member of an exchange, a low cost, highly functional, and
easy-to-use sales channel can be opened for the company. The sales channel will expose the
company to new audience.
4. Reduced Paper Works: Automated supply chain management reduces paper work drastically.

5. Eliminating Unauthorized Spending: Consolidated and automated procurement and approval
method prevents unauthorized purchasing in a company.

Find out different companies that provide B2B exchanges. Also, determine the features
that need to be incorporated to conduct business transactions effectively.

2.2.3 Benefits and Barriers of B2B E-Commerce

The following are the benefits of B2B:
1. Outsourcing the unprofitable parts of business
2. Speeding up of product development activities which reduces the time to market
3. Improves business and market intelligence
4. Improves the speed of communication

5. Provides the ability to experiment and learn
6. Facilitates communication between customers and suppliers
7. Reduces wastage through additional sales channels
8. Higher customer retention rates
9. Lower customer acquisition cost
The following are the barriers of B2B:
1. Costs and Financing of Implementing E-Commerce: Costs of implementing e-commerce can be a
serious barrier for Small and Medium sized Enterprises (SMEs). Costs include planning, procuring
hardware and software, maintenance, and telecommunication charges.

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