Understanding Business Models: Types of B2B Model

What is a B2B Business Model? 

B2B business model is a theoretical framework that serves an organization and describes how it operates and makes money. Every organization, regardless of size or turnover, has a business model.

Generally, B2B models consist of some key elements, such as the nature and specifications of the goods or services, resources and partners, methods of marketing, the target audience, and the method of payment. 

Key Elements of a B2B Business Model 

Primary Partners 

The main stakeholders in your B2B marketplace are referred to as “primary partners.” The main players in a B2B marketplace are the companies that place large purchases and the suppliers and manufacturers who receive and meet those demands.

Types of Goods or Services & USP

Types of Goods or Services & USP

This involves the types of products and services in the given B2B marketplace. The products your suppliers and manufacturers provide are included in this section. Your business model is majorly defined by the type of products and services your company deals with. 

Unique Selling Proposition is also an essential aspect of the B2B model. It ensures quality and authenticity.

Primary Resources

The term “resources” refers to the crucial knowledge that is provided to various stakeholders in order for them to make informed decisions and actions. A B2B marketplace’s assets could include a list of suppliers or manufacturers for buyers, which allows companies to see what options they have when making a purchase.

Links to manufacturer profiles, rankings, comments and reviews, contact details, shipping details, are also included in this category. This is also relevant for sellers who gain permission to create profiles and mention their goods.

Customer Relationship 

Safe dissemination of information in a regulated way on the network is required for smooth customer relations. The platform must ensure the security of all data associated with the main stakeholders in the online B2B marketplace. This concerns privacy, protection, and welfare of user login information or payment account information.

Cost Structure 

Customizable packages are the key. The payment systems and invoices and billings issued on the B2B marketplace are controlled by the pricing structure. It must provide the option to choose from a variety of tailored payment packages, such as a discounted price on larger purchases, a personalized discount strategy, and so on.

Types of B2B Business Models 

Types of B2B Business Models

A B2B company can be divided into several categories. This results in various types of B2B business models. Each B2B company receives assistance from B2B suppliers or manufacturers, as well as investors. Salary and tax payment, research & innovation, website design, SEO services, content marketing, telesales, human resource and recruiting, marketing and promotion, are all examples of B2B business models in action.

A B2B company can easily engage with other businesses using the internet. They may use online channels to illustrate their goods and services, their USPs, and advantages. Some of the major types of B2B Business Models are- 

Buyer-Centric Model 

Because of the higher percentage of sales, this type of B2B model is mostly used by large national or multinational corporations. The buyer creates a platform where suppliers and distributors can quote their services. The sellers approach the customer with numerous quotes and negotiations in order to make them understand the advantages of their services and what makes them different and the better option. Finally, it is up to the buyer to choose the best-suited agency based on the requirements and expenditure. Example- Target and Walmart.

Customer-Centric Model 

This is a type of B2B model that applies to a specific business form in which buyers have fair market value even after the transaction has occurred. This method is used to retain loyal clients in order to do successful business with them again in the near future. Customers are the priority here, and they also have a huge impact on company activities as well as the businesses that interact with them. Example- Amazon and Flipkart.

Intermediary-Centric Model 

This is a well-known B2B model that offers a portal for suppliers, manufacturers, and buyers to connect, communicate and deal with one another. The mediators contribute to the development of this portal. In exchange, the intermediaries receive a reasonable share of the fee from the relevant parties. An online marketplace isn’t just an excellent outlet, but it also aids in the growth of several significant companies.

To Summarise

All the major types of B2B models share some common advantages. Stability and loyalty are the key aspects and advantages when it comes to the B2B marketplace. In B2C, customers can change a brand easily and without having to think twice. While in B2B, the decision-makers of a company prefer to stick to the same organization or supplier. In the B2B marketplace, the seller-buyer relationship develops and strengthens with time. 

Businesses that depend on other businesses for products and services are not as unpredictable as the consumers we see in B2C models. Both sides know each other, and the buyer and the seller rely on each other for the smooth and successful running of their respective businesses. 

B2B business models also help in reducing the overall budget and provide better and reasonable deals. Almost every major type of B2B business model is beneficial and successful. 

Global Trade Plaza is a leading name in the online B2B Marketplace. They connect exporters, manufacturers, buyers, and suppliers from India and worldwide. They also provide their clients with excellent lead generation and digital marketing services. 

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