Due to the formulation of connectivity with businesses, the business-to-business sellers are much incentivized for making investments on their websites and marketing platforms. In this model, customers are actually the business companies, and their interacting agents have some job titles and responsibilities. An adequate level of database which contains the telephone numbers, contact credentials, the e-mail addresses, and so on should be maintained by these companies. Secondly, before making any deal or offers of the quotations, the selling company is needed to ensure that the buying company has the purchasing rights or not. There is a keen requirement of established corporate management so that the selling company knows the criterion of making interaction with the dealing parties. The b2b companies need to maintain proper websites to furnish other companies with information.
Advantages of Business-to-Business (b2b) Model
Due to the protocol of cost efficiency, the business firms also prefer to purchase goods from the manufacturers directly and not from the middlemen. The b2b model leads to the sale of larger numbers of units of goods. It is because the size of the companies is considerably large and they demand goods in bulk quantities. Therefore, b2b seller picks the bigger deal at one point of time. The transportation costs are much lesser, and b2b seller earns larger amounts of profits in one shot. Secondly, the companies replace their products from time to time, so that they can have a tie-up with the b2b seller and make regular orders. The supply chain management of b2b seller is quite effective. This model leads to the maintenance of long term customer relationships.
Disadvantages of Business-to-Business (b2b) Model
The major disadvantage is that the business firms who make the orders generally prefer to have customization in their purchased goods as per their desires. So, b2b seller faces too much complexity as they have to make major adjustments in their prices, the negotiation processes, and the probable customization in the offered products. Secondly, due to the interaction of professionals and the bulk orders, it is quite difficult to please them. Undoubtedly, it is a long process and requires too many ethical interactions. Also, the investments on the hiring of business developers invite too many expenses, and the costs of administration get higher.
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