In the business world, B2B, refers to business transactions between two companies, in contrast to the B2C model that involves selling products or services directly to end consumers. In the B2B environment, there are different business models that can be adopted by companies to achieve success.
B2B has emerged as a powerful tool to drive growth and efficiency in business transactions between companies. With a specific focus on the needs of the B2B market, this revolutionary approach has transformed the way companies conduct their business. That's why B2B Architecture is essential for optimizing business operations between enterprises.
According to specialists' forecasts, the segment in Brazil will grow 20% per year. And the B2B E-commerce model is already achieving encouraging numbers in our country. Proof of this is that, according to a McKinsey survey, the Brazilian B2B E-commerce had a 62% increase in 2020, second only to South Korea (68%), France (65%), and Italy (64%).
There are different business models in B2B that have significant distinctions in how commercial transactions take place. While some models are centered on the sale of physical products, others focus on providing services or technology solutions.
In addition, there are models based on marketplaces, where multiple companies can connect to buy and sell, and those that involve long-term contracts and franchise relationships. Adapting to the right business model can make the difference in a company's success in the B2B marketmarket, enabling it to offer added value, build lasting relationships, and drive sustainable growth.
In this article we will talk about the different B2B business models, where each model has its own dynamics and challenges, displaying an in-depth understanding of the needs and expectations of buying companies.
The different B2B business models
In this model, companies focus on selling physical products to other companies. These can be capital goods, raw materials, components, or finished products. The goal is to provide products that meet the needs of the buying companies.
Supply of services
Instead of focusing on products, this B2B business model focuses on providing services to other companies. This can involve professional services such as consulting, legal advice, accounting, digital marketing, and others. The aim is to help buying companies improve their operations and achieve their goals.
The B2B marketplaces are online platforms that bring buyers and sellers together in one place. These platforms facilitate transactions between businesses, allowing them to buy and sell products or services from each other. Famous examples include Alibaba, Amazon Business, and Mercado Livre Empresas.
In this model, companies develop and license software to other companies. This can include business management software, CRM (Customer Relationship Management) solutions, automation software, and others. The goal is to provide tools and technology that help the buying companies improve their efficiency and productivity.
Some companies enter into long-term contracts to supply specific products or services to other companies. This can involve raw material supply, logistics services, equipment maintenance, and more. The goal is to establish long-term relationships and ensure a constant flow of business.
Although it is more common in the B2C model, franchising can also be applied to B2B. In this model, a company (franchisor) grants another company (franchisee) the right to use its brand, processes, and knowledge to offer specific products or services. The franchisee pays an initial fee and royalties in exchange for ongoing support from the franchisor.
In this model, companies offer customized solutions to meet specific needs of other companies. This may involve the development of tailored products or services, adapted to the unique demands of each customer.
Vertical integration occurs when a company expands its operations by taking control of different stages of the supply chain. This may involve the acquisition or development of suppliers, distributors, or other intermediaries in the value chain.
These are just a few examples of the different business models in B2B. Importantly, companies can adopt a combination of models or even create customized models according to their specific needs and objectives. Success in B2B depends on understanding market demands, building solid relationships, and offering added value to the buying companies.
If you are looking to take your B2B business to the next level, and want to change your business model, our experts offer everything you need to boost your operations and achieve e-commerce success.
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