B2B Business Models: What to Know About Each eCommerce B2B Model

Key Takeaways

The "For the Masses" model is a B2B approach that caters to a broad market, offering standardized products or services at competitive prices. It aims for high-volume sales with lower profit margins
Conversely, the "Customer Relationship" model focuses on personalized services, building long-term partnerships, and tailoring solutions to specific client needs. This model often involves higher prices and emphasizes client satisfaction and loyalty.
The hybrid model combines elements of both approaches, providing a range of products with options for customization. It seeks to balance mass appeal with strong client relationships, offering flexibility and scalability for diverse customer demands.

Business Models Used by B2B eCommerce Companies

B2B Commerce business models to employ for your B2B business

Direct and network models for B2B business. Everyone has a different B2B eCommerce definition for that particular model. Some define it very broadly by saying it’s a combination of the choices of how to operate your business, or the way your business works while others are more specific, saying it has to consist of certain elements such as processes, resources, and customer value propositions.

No matter what definition you ascribe to, you need an eCommerce business model to help you run your B2B eCommerce business. Three of the main types of business models that have proven successful for B2B eCommerce businesses are the masses model, customer relationship-focused model, and a hybrid model.

For the Masses eCommerce Business Model

What is B2B eCommerce? This model works well for B2B businesses with a vast product catalog that wants to reach as many customers as possible. In this model, the business relies on digital marketing rather than the sales department.

This type of model is usually used by B2B companies that sell more generic, nonspecialized products that even consumers may purchase. In order to get customers to keep coming back, this model uses tactics like email marketing and loyalty programs. To make this model successful, prices need to be kept competitive, and the B2B eCommerce site needs to be optimized for search engines. The focus should be kept on having a functional and easy-to-use eCommerce site for a wide variety of customers that will keep them coming back for more.

A buyer-centric model can maintain customer loyalty.

Customer Relationship-Focused Business Model

In this model, the focus is more on personal customer relationships. The sales team of the B2B business is an integral part of managing trade partner calls, nurturing the customer relationship, and being there to answer any questions. This type of model is usually used by B2B companies that sell products and services that are personalized, niche, or specialized equipment. The B2B eCommerce site helps bring in leads which the team continues to educate and nurture even after they are converted into customers.

The eCommerce website is used to create a personalized experience for each customer, presenting them with items related to what they have already bought, allowing them to easily reorder products they have purchased in the past, and showing them customer-specific pricing. In this model, businesses usually integrate their ERP and CRM systems to help them provide a truly personal experience for their customers.

Hybrid Business Model

This model is a cross between the for-the-masses model and the relationship-focused model. The hybrid model includes a combination of selling from a large online product catalog to a variety of business buyers and selling specialized products to a niche market. In this model, the B2B architecture serves a dual purpose. A buyer-oriented marketplace using the marketplace business model gives buyers the ability to easily purchase from the website as well as giving the niche market a personalized experience with better customer-specific pricing.

Customer segmentation and integration with CRM and ERP are vital to helping the business and sales representative service customers. This model could give your eCommerce business the best of both worlds or a large headache, depending on how well-equipped your eCommerce website, platform, and sales force are. B2B projects that tackle a hybrid model must be finely tuned.

Service-provider transaction fees for B2B business.

The Right Model for Your Business

When choosing what model to apply to your B2B business, you must remember one thing: it is perfectly okay to design your own model. If one of the above or many of the other models not listed here will work well for your business, customize it to fit your specific business needs.

However, if you want an innovative eCommerce in B2B business model, do some more research, talk to industry experts, and discuss your ideas with eCommerce developers who can incorporate your plans into your B2B eCommerce site and how it can improve your supply chain.

Clarity Can Help

At Clarity, we understand how difficult running a business-to-business company can be. For almost a decade, we have worked in B2B eCommerce development, working with clients who needed an eCommerce platform that could be adjusted to their model. Our Clarity eCommerce platform is easily customizable to fit your business’s needs.

To find out more about how our web developers can customize Clarity eCommerce to work with your model—from marketplaces to storefronts to a B2B eCommerce mobile app—call or click to contact us today to tell us about the needs of your B2B project!

No matter which model you choose...

Clarity is here to deliver the eCommerce platform that is perfectly tailored to meet your needs.

Get In Touch For a No-Pressure Demo!

FAQ

What are B2B business models?

B2B business models involve transactions and commerce between two or more businesses, rather than between a business and individual consumers. In this model, one company provides products, services, or solutions to another company.

Business-to-business transactions often focus on meeting the specific needs and demands of businesses, which can include anything from raw materials and components to specialized services or software. These transactions are typically larger in scale compared to B2C (business-to-consumer) transactions, and they may involve negotiations, contracts, and ongoing relationships.

What are key characteristics of the B2B model?

Key characteristics of the B2B model include:

Target Audience: The primary audience is other businesses, which may be in the same industry or in different sectors requiring specific goods or services.
Complex Sales Process: B2B transactions often involve a more complex sales cycle. This can include negotiations, demonstrations, procurement processes, and long-term contracts.
Customization and Personalization: B2B offerings are often tailored to meet the unique needs and requirements of the purchasing business. This can involve customization of products, services, or solutions.
Relationship Focus: Building and maintaining strong relationships with clients is crucial in B2B. Trust, reliability, and understanding of the client's business are paramount.
Volume and Frequency: B2B transactions tend to involve higher volumes and larger quantities of goods or services, but they may occur less frequently compared to B2C transactions.
Value Proposition: B2B companies often emphasize the value they bring to their clients in terms of cost savings, increased efficiency, improved processes, or other business benefits.

Examples of B2B businesses include wholesalers, manufacturers, software-as-a-service (SaaS) providers, marketing agencies, and consulting firms. They provide essential goods and services that help other businesses operate, grow, and succeed in their respective industries.

How are B2B models of eCommerce different from B2C?

B2B models of eCommerce involve transactions between businesses, where a company provides products, services, or solutions to other businesses. In contrast, a B2C (business-to-consumer) model involves businesses selling directly to individual consumers.

Business-to-business relationships are typically characterized by larger order volumes, longer sales cycles, and a more complex decision-making process. They often involve negotiations, contracts, and a focus on meeting specific business needs. Personal relationships and trust are crucial in B2B interactions.

Conversely, B2C transactions are usually simpler, with a shorter sales cycle and a more emotional or impulsive buying behavior. B2C businesses often market their products or services to a wider audience and aim for high customer volumes.

Also, the marketing strategies for B2B and B2C differ. B2B marketing emphasizes educating and building trust with potential clients, often using content marketing and networking. B2C marketing often focuses on emotional appeals, brand loyalty, and creating a compelling customer experience.

Do B2B business models change supply chain management?

B2B (Business-to-Business) business models significantly impact and transform supply chain management (SCM). Unlike traditional B2C (Business-to-Consumer) models, B2B transactions involve larger volumes, complex relationships, and diverse product lines. B2B often necessitates more robust and adaptable supply chain structures to meet the specific needs of other companies.

In B2B, SCM is characterized by customization, scalability, and efficiency. Companies engaged in B2B transactions often require tailored solutions, such as just-in-time inventory systems, to optimize production and minimize costs. The integration of technology and data analytics is a key aspect of B2B supply chains, enabling real-time visibility and predictive analytics for inventory management, demand forecasting, and order fulfillment.

Moreover, B2B models frequently involve long-term partnerships and collaborative relationships, influencing SCM strategies to prioritize reliability and responsiveness. ECommerce platforms and digital marketplaces further streamline procurement processes, facilitating seamless communication and transactions between businesses.

Overall, B2B business models drive innovation in SCM, emphasizing flexibility, agility, and strategic alignment to better serve the unique demands of business customers.

Still have questions? Chat with us on the bottom right corner of your screen #NotARobot