Supply Chain - B2B vs. B2C

Essay by eleggatUniversity, Bachelor'sA+, February 2004

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Supply Chain

The definition of supply chain would refer to the distribution of a product, service, etc. from conception through the delivery to the consumer. The managing of the supply chain involves sourcing, manufacturing, storage, distribution, and delivery of goods to the customers. It requires integration with channel partners, including suppliers, distributors, and customers, to create a linked channel (

In order to know the differences between B2B (business to business) and B2C (business to consumer), we have to know what each one is. E-commerce is basically any online transaction while B2C is when a company sells its products to consumers online and is for their own use. Examples may include,, and other store-like websites individuals can go to and purchase items.

B2B is an exchange of products, services, etc... between businesses but not consumers. So, basically, B2B is e-commerce between businesses. Some examples of categories where B2B websites may fall, include the following:

1.Company Web sites

2.Product supply exchanges

3.Industry portals (specialized)

4.Brokering sites

5.Information sites


B2B differs from B2C for a couple of reasons. First, the transaction amounts are higher for B2C and they are seller driven where B2B is more business driven. According to a John M. Coe's article, there are seven key differences between B2B and B2C from a marketing perception. These differences include the size of the market, the buying and selling process, the cost and value of the sale, data quality as well as lead generation vs. sale (Coe, 2001).

Another difference I found between the two is that B2B is actually larger and growing faster than B2C. According to Dholakia, an estimate was done on the two and he found that B2B made up 80% of all e-commerce in the year 2000 and this percentage...