Home > Articles

Business-to-Business

It's official: Business-to-business e-commerce is where the money is, or at least will be soon. When the strong e-commerce stock correction hit the charts in early 2000, pundits and analysts declared that business-to-consumer (B2C) companies on the Net had seen better days. So they went looking for the next big thing and what they found was business-to-business (B2B). Analysts like the Boston Consulting Group predicted that one-fourth of all US business-to-business e-commerce will be done online by 2003 and reach $2.8 trillion in transactions.

B2B and B2C

B2B is short for selling business-to-business and B2C is short for selling business-to-consumer.

With predictions like these, it seemed that it was B2B's time to shine and within a few short months, anything that hinted at being B2B got the lion's share of attention and funding. In the rush to distance themselves from the out-of-favor B2C label, many B2C companies even recast themselves as B2Bs. There's no doubt that the B2B marketplace is full of opportunities for e-business. However, a company still has the challenge of positioning itself in that market.

UPS Starts Tracking

Through an alliance with two Internet payment companies, United Parcel Service (UPS) will allow businesses to track the status of their invoices and make payment adjustments. With this service, companies can cut administrative costs and streamline business transactions through online dispute resolution, payment scheduling, and payment automation.

B2Bs are similar to B2Cs in one respect. The majority of them bring together many buyers and sellers at a single site. Some serve several industries at a time while others serve a specific niche. Revenue is generated from most B2B companies by charging fees for making introductions or handling the transaction and payment.

Some B2B Markets Hit Resistance

The promise of B2B success for super-exchanges such as PlasticsNet is fading as key players balk at paying transaction fees to do business with their existing partners. Super-exchanges need to offer additional value above and beyond just duplicating a B2B process that already exists for companies.

Basically, the B2B universe consists of four types:

  • B2B Product and Service Suppliers–The most typical and the simplest B2B commerce is the one most similar to B2C companies. Let's say a business manufactures computer cases. Another business uses computer cases for the PCs it manufactures. The PC maker visits the manufacturer's Web site, chooses the cases it wants and the quantity, and places an order. Done deal.

But these types of transactions are not limited to products alone. Let's suppose that a manufacturer needs to ship its products to distributors around the country. It visits the Web site of a trucking company and schedules a pickup and delivery. A simple service transaction between businesses done over the Net.

This one-to-one business model works best as long as products are standardized and prices are normally stable. Computer makers are just one example of who uses this kind of B2B e-commerce, as are companies that sell the hardware for the Internet.

  • B2B Non-industry Exchanges–There are many products that almost every industry needs, such as office supplies, advertising services, cleaning supplies, industrial glues, and so on–anything that can sell across more than one industry–but do not include the actual material to manufacture a product.

MRO.com (http://www.mro.com/) is good example of these kinds of exchanges that supply businesses with products for maintenance, repair, and operations. iMark (http://www.imark.com/) is another. It focuses on selling used industrial equipment in an auction format between businesses while iProcure (http://www.iprocure.com/) (see Figure 3.3) provides instant access to millions of industrial parts and supplies.

  • B2B Industry Exchanges–Unlike Non-industry Exchanges, Industry Exchanges focus on one specific industry. They cater to a single market like steel for cars or paper for boxes. They're often called vertical markets because they offer everything within a single industry, from raw materials to finished products. Flush with cash from venture capitalists, independently owned online exchanges are being formed for every conceivable product. While these exchanges are diverse, most of them will accommodate only one exchange. In this game, it's winner take all.

These types of exchanges work best for commodity type products like metals, paper, or plastics. ChemConnect (http://www.chemconnect.com/) connects buyers and sellers worldwide on everything from raw chemicals to finished plastics and resins. Another Industry Exchange is PaperExchange (http://www.paperexchange.com/), which offers a marketplace for everything from cardboard to fine office paper.

  • B2B Trading Hubs–When General Motors needs to purchase the necessary parts to make its automobiles, it puts out its request for bid and the many different businesses that make the hundreds of items that go into a new car bid for GM's business. Batteries, radios, seats, paint, and hundreds of other products that go into a new automobile are bought and sold on the Trading Hubs.

Automakers Create B2B Exchange

Five major automakers–General Motors, Ford Motor, DaimlerChrysler, Renault, and Nissan Motor formed an automotive Internet Exchange called Covisint. Covisint is an outgrowth of an exchange that GM, Ford, and DaimlerChrysler formed in the early part of 2000. Covisint (http://www.covisint.com/) is touted by the automakers as the largest Internet business ever created. The marketplace will create a single automotive-parts exchange for the companies' thousands of suppliers and dealers.

General Motors became a classic example of this type of B2B play when it put its procurement process online. Other automakers soon followed and joined GM's Trading Hub, choosing to share the benefits of a centralized purchasing process and the economies of scale it provided.

While this type of exchange is forming on the ground, another has formed in the air. Six major airlines including Air France, American Airlines, and British Airways have formed an exchange to link sellers of airline-related goods and services such as fuel and fuel services; airframe, avionics and engine components; and maintenance services.

InformIT Promotional Mailings & Special Offers

I would like to receive exclusive offers and hear about products from InformIT and its family of brands. I can unsubscribe at any time.

Overview


Pearson Education, Inc., 221 River Street, Hoboken, New Jersey 07030, (Pearson) presents this site to provide information about products and services that can be purchased through this site.

This privacy notice provides an overview of our commitment to privacy and describes how we collect, protect, use and share personal information collected through this site. Please note that other Pearson websites and online products and services have their own separate privacy policies.

Collection and Use of Information


To conduct business and deliver products and services, Pearson collects and uses personal information in several ways in connection with this site, including:

Questions and Inquiries

For inquiries and questions, we collect the inquiry or question, together with name, contact details (email address, phone number and mailing address) and any other additional information voluntarily submitted to us through a Contact Us form or an email. We use this information to address the inquiry and respond to the question.

Online Store

For orders and purchases placed through our online store on this site, we collect order details, name, institution name and address (if applicable), email address, phone number, shipping and billing addresses, credit/debit card information, shipping options and any instructions. We use this information to complete transactions, fulfill orders, communicate with individuals placing orders or visiting the online store, and for related purposes.

Surveys

Pearson may offer opportunities to provide feedback or participate in surveys, including surveys evaluating Pearson products, services or sites. Participation is voluntary. Pearson collects information requested in the survey questions and uses the information to evaluate, support, maintain and improve products, services or sites, develop new products and services, conduct educational research and for other purposes specified in the survey.

Contests and Drawings

Occasionally, we may sponsor a contest or drawing. Participation is optional. Pearson collects name, contact information and other information specified on the entry form for the contest or drawing to conduct the contest or drawing. Pearson may collect additional personal information from the winners of a contest or drawing in order to award the prize and for tax reporting purposes, as required by law.

Newsletters

If you have elected to receive email newsletters or promotional mailings and special offers but want to unsubscribe, simply email information@informit.com.

Service Announcements

On rare occasions it is necessary to send out a strictly service related announcement. For instance, if our service is temporarily suspended for maintenance we might send users an email. Generally, users may not opt-out of these communications, though they can deactivate their account information. However, these communications are not promotional in nature.

Customer Service

We communicate with users on a regular basis to provide requested services and in regard to issues relating to their account we reply via email or phone in accordance with the users' wishes when a user submits their information through our Contact Us form.

Other Collection and Use of Information


Application and System Logs

Pearson automatically collects log data to help ensure the delivery, availability and security of this site. Log data may include technical information about how a user or visitor connected to this site, such as browser type, type of computer/device, operating system, internet service provider and IP address. We use this information for support purposes and to monitor the health of the site, identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents and appropriately scale computing resources.

Web Analytics

Pearson may use third party web trend analytical services, including Google Analytics, to collect visitor information, such as IP addresses, browser types, referring pages, pages visited and time spent on a particular site. While these analytical services collect and report information on an anonymous basis, they may use cookies to gather web trend information. The information gathered may enable Pearson (but not the third party web trend services) to link information with application and system log data. Pearson uses this information for system administration and to identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents, appropriately scale computing resources and otherwise support and deliver this site and its services.

Cookies and Related Technologies

This site uses cookies and similar technologies to personalize content, measure traffic patterns, control security, track use and access of information on this site, and provide interest-based messages and advertising. Users can manage and block the use of cookies through their browser. Disabling or blocking certain cookies may limit the functionality of this site.

Do Not Track

This site currently does not respond to Do Not Track signals.

Security


Pearson uses appropriate physical, administrative and technical security measures to protect personal information from unauthorized access, use and disclosure.

Children


This site is not directed to children under the age of 13.

Marketing


Pearson may send or direct marketing communications to users, provided that

  • Pearson will not use personal information collected or processed as a K-12 school service provider for the purpose of directed or targeted advertising.
  • Such marketing is consistent with applicable law and Pearson's legal obligations.
  • Pearson will not knowingly direct or send marketing communications to an individual who has expressed a preference not to receive marketing.
  • Where required by applicable law, express or implied consent to marketing exists and has not been withdrawn.

Pearson may provide personal information to a third party service provider on a restricted basis to provide marketing solely on behalf of Pearson or an affiliate or customer for whom Pearson is a service provider. Marketing preferences may be changed at any time.

Correcting/Updating Personal Information


If a user's personally identifiable information changes (such as your postal address or email address), we provide a way to correct or update that user's personal data provided to us. This can be done on the Account page. If a user no longer desires our service and desires to delete his or her account, please contact us at customer-service@informit.com and we will process the deletion of a user's account.

Choice/Opt-out


Users can always make an informed choice as to whether they should proceed with certain services offered by InformIT. If you choose to remove yourself from our mailing list(s) simply visit the following page and uncheck any communication you no longer want to receive: www.informit.com/u.aspx.

Sale of Personal Information


Pearson does not rent or sell personal information in exchange for any payment of money.

While Pearson does not sell personal information, as defined in Nevada law, Nevada residents may email a request for no sale of their personal information to NevadaDesignatedRequest@pearson.com.

Supplemental Privacy Statement for California Residents


California residents should read our Supplemental privacy statement for California residents in conjunction with this Privacy Notice. The Supplemental privacy statement for California residents explains Pearson's commitment to comply with California law and applies to personal information of California residents collected in connection with this site and the Services.

Sharing and Disclosure


Pearson may disclose personal information, as follows:

  • As required by law.
  • With the consent of the individual (or their parent, if the individual is a minor)
  • In response to a subpoena, court order or legal process, to the extent permitted or required by law
  • To protect the security and safety of individuals, data, assets and systems, consistent with applicable law
  • In connection the sale, joint venture or other transfer of some or all of its company or assets, subject to the provisions of this Privacy Notice
  • To investigate or address actual or suspected fraud or other illegal activities
  • To exercise its legal rights, including enforcement of the Terms of Use for this site or another contract
  • To affiliated Pearson companies and other companies and organizations who perform work for Pearson and are obligated to protect the privacy of personal information consistent with this Privacy Notice
  • To a school, organization, company or government agency, where Pearson collects or processes the personal information in a school setting or on behalf of such organization, company or government agency.

Links


This web site contains links to other sites. Please be aware that we are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of each and every web site that collects Personal Information. This privacy statement applies solely to information collected by this web site.

Requests and Contact


Please contact us about this Privacy Notice or if you have any requests or questions relating to the privacy of your personal information.

Changes to this Privacy Notice


We may revise this Privacy Notice through an updated posting. We will identify the effective date of the revision in the posting. Often, updates are made to provide greater clarity or to comply with changes in regulatory requirements. If the updates involve material changes to the collection, protection, use or disclosure of Personal Information, Pearson will provide notice of the change through a conspicuous notice on this site or other appropriate way. Continued use of the site after the effective date of a posted revision evidences acceptance. Please contact us if you have questions or concerns about the Privacy Notice or any objection to any revisions.

Last Update: November 17, 2020