B2B e-Commerce3, 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).
B2B transactions are much more complex compared to B2C e-Commerce. 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 are 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.