Running head: BUSINESS TO BUSINESS EXCHANGES Ã¯Â¿Â½ PAGE \* MERGEFORMAT Ã¯Â¿Â½1Ã¯Â¿Â½ BUSINESS TO BUSINESS EXCHANGES Ã¯Â¿Â½ PAGE \* MERGEFORMAT Ã¯Â¿Â½3Ã¯Â¿Â½
Business to Business Exchanges
June 12, 2014
Describe each of the three (3) business-to-business (B2B) exchanges. For each exchange type, discuss how the Internet acts as a resource in the exchange.
Business to business exchanges are transactions between two businesses example manufacturer and his wholesaler, wholesaler and retailer. It is different from Business to Consumer in that the buyer of the products does not consume the product rather he/she sells it. The volume transacted in the business to business transaction is very high when compared to business to consumer. This makes many businesses to prefer this model of doing business. Business to Business transaction may also involve communication between two businesses.
This model of doing business reduces business costs. With the advent of technology business to business transaction have been taken to the next level of information technology (Chernatony, 2003).
In the internet there are platforms where suppliers, manufacturers advertise their brand of products and the willing buyer or seller bids for the products. Since the manufacturers are many in this platform, the potential buyer can analyze and pick the best offer in the market. The automation of Business to Business helps reduce time and travel expenses by both businesses persons.
The public exchange is a type of Business to Business which is opened by a third party who gives selling avenues in his website. The third party sets up standards for the products that can be sold in the website and also comes up with measures to guarantee sellers and buyers from conmen and internet criminals. It offers an avenue for all types of products and also includes online payment systems...