We’ve reached into the Partnet archive to bring you today’s post. Originally posted in March 2013, B2B VS B2G: How eCommerce Can Save the Government Money, is brought to us by blogger Debra Fryar.

Business to Business (B2B) markets have positively influenced the business community for a number of years now. Their impact on the economy is evident in several ways:

Transaction costs. Three cost areas are significantly reduced through the conduct of B2B eCommerce.

First is the reduction of search costs, as buyers need not go through multiple intermediaries to search for information about suppliers, products and prices as in a traditional supply chain. Internet is more efficient at gathering information, in terms of effort, time, and money spent. In B2B markets, buyers and sellers are gathered together into a single online trading community, reducing search costs even further.
Second is the reduction in the costs of processing transactions (e.g. invoices, purchase orders and payment schemes), as B2B allows for the automation of transaction processes and therefore, the quick implementation of the same compared to other channels (such as the telephone and fax).
Third, online processing improves inventory management and logistics.

Removing Intermediaries. Through B2B e-markets, suppliers are able to interact and transact directly with buyers, thereby eliminating intermediaries and distributors.

Transparency in pricing. Among the more evident benefits of e-markets is the increase in price transparency.

The gathering of a large number of buyers and sellers in a single e-market reveals market price information and transaction processing to participants.
Increased price transparency has the effect of pulling down price differentials in the market.
Buyers are provided much more time to compare prices and make better buying decisions.
B2B e-markets also allow multiple buyers and sellers to participate in two-way or reverse auctions. In such environments, […]