B2B Business Model

1. E-Distributor

2. Exchange

3. Industry Consortia

Business to business (B2B) business model is a website sell its product to intermediate buyer who then sell the product to its final customer. For example, a wholeseller place an order from a company website, and after recieve the consignment, a wholeseller sell the product to final customer who come to the wholeseller outlet. Here is the three type of B2B business model. First is e-distributor where it supplies product directly to customer and owned by one company which seeking to serve many customers. Typically got the revenue by sales of good. An example of e-distributor is Grainger.com. Second is exchange, the electronic digital marketplace where hundred of suppliers meet a smaller number of very large commercial buyer. It create powerful competition between suppliers and usually onwed by independent firm whose business is market. The revenue recieve by chargers transaction fee. Third is industry consortia which is a industry-owned vertical marketplace that serve specific industry like automobile or chemical. Horizontal marketplace, in contrast, sell specific product or services to a wide range indusry. an example of industry consortia is Exostar.