B2B is a term that is not familiar to every average person, since it is associated with the field of sales and commercial activities. In this article, we will try to understand what a capacious concept is hidden in this concise abbreviation, what specific types of B2B sales exist, what advantages and disadvantages this type of activity has.
What is B2B?
B2B sales have been changed over the past couple of years. This is due to the emergence of the latest achievements of science and technology, the growth of consciousness, and the competition of the client. The B2B market operates according to different rules than a good consumer market. Accordingly, there are completely different tools and strategies used in the course of sales. In order to be aware of these differences, let’s start our acquaintance with the B2B decryption.
B2B stands for “business to business”. In other words, the company sells goods or services that are necessary not for the customer’s consumption, but for conducting his own business.
Ignorance of this term, its essence leads to illiteracy in the business environment. Any entrepreneur is obliged to familiarize himself with this type of promotion of services and product concepts in order to be competent in any branch of business. Quite often, the term is confused with a similar concept of B2C, but this will be discussed a little later.
It should be noted that sometimes the implementation of B2B business solutions requires the effective help of experienced specialists. AGORA is a powerful platform for automating B2B sales, purchasing activities and supply chain management. The company is a developer of B2B e-Commerce solutions based on its own platform. To get acquainted with its services, visit the website https://agorab2b.com/.
What do B2B sales look like in practice?
Imagine that you are the owner of a company engaged in text translation. You have real polyglots working in your staff who will be able to translate the text from French to Russian and back without any problems. The director of a construction store asks you for help. He asks you to translate all the data on new Italian construction materials, wallpaper and headset. You are providing him with a service that will help in the future in the work of the construction store since the employees will take the product description in Russian and will be able to advise their own customers.
This is how B2B sales look in practice, they are aimed not at a specific client and his individual needs, but at the needs of the business that he has. B2B sales become a kind of additional link necessary for the implementation of entrepreneurial activity. Basically, any entrepreneur is faced with B2B sales, because he lacks attracting outside help.
B2B is a term that characterizes the services and sales of goods necessary for commercial enterprises and the functioning of enterprises.
In simple terms, an entrepreneur works to ensure the vital activity of the second objects of commercial activity. This is a stable connection that appeared in the conditions of capitalist relations. The field of sales is specific, it is focused on a special type of customers, which are not as many as in the network of simple sales for the end consumer.
Main types of sales
Today, experts distinguish three main types of sales, each of which is worth considering in detail:
The fundamental difference between this type of sales is that only a legal entity, in other words, a third-party organization, is made by the consumer and the partner of favors. Some entrepreneurs realize the purchase of services and goods from other entrepreneurs, absolutely justifying the reduction of “business for business”;
This is a more familiar type of business sales, focused on the average consumer. It is called a business for consumers, it is carried out much more often through store sales. The quantities of products sold can be small;
Sales focused on the country, in other words, the state is the main client. It is quite difficult to get access to cooperation with the country due to strict requirements and the level of competition. Not so many commercial structures are engaged in such sales, this is a special privilege that can only be obtained during an exhausting tender.
Based on the three existing types of sales, it can be emphasized that B2C sales are the most common phenomenon, they are understandable, it is quite easy to deal with them.
As for B2B sales, this is a more highly specialized area of commercial activity that develops into a form of cooperation. It is necessary to prepare for the fact that a potential client will be competent in matters related to the purchase of goods or services. In addition, there may not be so many people who want to make an acquisition.
Advantages and disadvantages
Any kind of sales is accompanied by both good and negative moments. If you are still in doubt whether it is worth dedicating yourself to this type of activity, then let’s weigh the pros and cons.
- lack of a firm fight. You work for yourself, the result absolutely depends on the specific seller and the activities of the team;
- there is no need to build a marketing policy because the B2B sales client is quite savvy, he understands what he wants and will not be led to a catchy wrapper and advertising slogans;
- quite a lot of insider information used to increase income;
- at first, you will not need huge capital, unlike retail sales to individuals.
The main disadvantages
- The business is completely dependent on the availability of customers, you need to be constantly looking for a potential client.
- There is a great risk of losing the client due to any circumstances.
- Now there is a shortage of B2B experts.
- Specialists shout with one voice that the basis for B2B business is active sales. Accordingly, you should always be on the lookout for customers, they will not come to you on their own.
- It is easier to convince the client with numbers. Translate the probable result of the purchase of the product into digital values and the effect will be several times higher than a simple verbal explanation of the advantages of the product.
- Do not rush to draw conclusions, having suffered a couple of failures. The world of B2B teaches us patience, there will be quite a lot of rejection calls, but you should not despair, you need to persistently go to the goal, then you will find your own client.
- Agree on pilot sales, only then it is possible to start full-scale deliveries.
- Work actively with the sales department, of course, try to search for a client via the Internet.
- Be sure to create a detailed product promotion program. Think about the introduction of bonuses and a system of discounts, stimulate your own employees with bonuses, provide warehouses for storing goods to your customers;
- According to the data of sociological surveys conducted among the clients of B2B companies, the greatest interest leads to the fact that they behave, actively, openly and demonstrate a huge interest in their own consumers.
B2B business is the sale of services and goods for the needs of third-party firms. This is a good example of cooperation of legal entities with other legal entities. The segment is quite fascinating for the modern market, it requires specific knowledge and a special approach. Following all the recommendations, it is possible to find solid B2B business solutions and to build successful business that brings a stable income.