Business To Business Sales At a Glance http://newwebsitemarketing.com/business-to-business-sales-at-aglance/
In the modern world, when the barter system is a long lost thing, people have to rely upon others to get their supply of products from the market. An organization that sells such goods or services to their customers is termed a business. Normally, we come across the most common aspect of selling goods which is a business to customers sales whereby an organization or a firm sells its products which can either be a good like a food product, merchandise etc or services like professional counseling etc. to its customers .But the concept of Business to Business sales is fast making an impact in the global market. In the Business to Customer (B2C) kind of sale, the goods directly get transferred from the business to the customers but during Business to Business (B2B) sales, the goods are sold to another business.
Therefore in a nutshell, we can say that business to business sales is a commercial transaction between a wholesaler and a retailer or a wholesaler and a manufacturer. The most suitable example in this case would be that of supermarkets. In a supermarket, goods are purchased from wholesaler in bulk quantities at lower prices which is a B2B sale and then sold to the customers at higher value.
Advantages of B2B Sales:
Though the number of clients is not as high, the order that is placed is of huge quantity. Also since there are fewer clients, the business can cater to the need of each one of them by assigning individual sales representatives so that the clients can directly talk to their representatives and sort out business matters. No middleman is required and therefore there is direct communication between business and its client thereby reducing cost to some extent. B2B Sales facilitates better qualities of goods. Since there are fewer clients, a particular business can carry on market research, follow reviews of its clients and then work towards product upgrades when appropriate.
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Disadvantages of B2B Sales:
Somehow a wrong decision is taken regarding the quality or quantity, and then the whole product has to be rolled back. Since here the products are purchased from another business in bulk, which will incur huge losses for the firm. It’s riskier than B2C because huge monetary transaction is involved. Also, it is important to note that new brands often fail to make a way to a business's closed group of clients. Small businesses are eliminated since the retailers buy the products from the wholesalers at a discount and then sell it in the market at a lower price than what a small shopkeeper, who buys fewer quantities of goods, can offer. With its various advantages as well as shortcomings, it is not very difficult to predict that this marketing strategy is not averse to business and its acceptance in the global market as a leading marketing and sales tool has opened new avenues. With the global world vying for e-business platforms now and demands for products increasing day after day, there is no doubt that B2B is here to stay, for all the good reasons of course.
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