Legal Definitions - business-to-business e-commerce

Business-to-Business E-commerce

First, let's clarify that e-commerce stands for electronic commerce, which refers to the buying and selling of goods or services using the internet.

Business-to-business e-commerce describes commercial transactions conducted electronically over the internet specifically between two or more businesses. Unlike business-to-consumer (B2C) e-commerce, which involves a company selling directly to individual customers, B2B e-commerce focuses on companies procuring products, services, or information from other companies through online platforms, marketplaces, or dedicated portals.

Here are some examples illustrating business-to-business e-commerce:

• A national restaurant chain uses a secure online portal provided by a large food distributor to place weekly orders for fresh produce, meats, and dry goods for all its restaurant locations. The distributor's portal allows the chain to view inventory, compare prices, track past orders, and manage deliveries efficiently.

  This is business-to-business e-commerce because one business (the restaurant chain) is purchasing supplies from another business (the food distributor) entirely through an internet-based system.

• A digital marketing agency subscribes to a specialized project management software suite offered by a software development company. The agency manages its subscription, adds new user licenses, and pays its monthly fees directly through the software company's website.

  This illustrates business-to-business e-commerce as one company (the marketing agency) is acquiring a service (software subscription) from another company (the software developer) via an online platform.

• An automotive manufacturer sources specific electronic components, such as microcontrollers and sensors, from various global suppliers through a dedicated B2B online marketplace. This platform allows the manufacturer to solicit bids, negotiate terms, and finalize purchase orders with multiple component suppliers worldwide.

  This is an example of business-to-business e-commerce because the automotive manufacturer (a business) is procuring essential parts from other businesses (the component suppliers) using an internet-based marketplace designed for inter-company transactions.