Research the Potential Benefits of B2B E-Commerce - Week 7

Week 7 E-Commerce
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Potential benefits of B2B e-commerce
Business-to business (B2B) e-commerce relates to transitions better businesses conducted through online platforms, and internet usage has reduced the cost of communication to facilitate e-commerce. The benefits of B2B e-commerce are:
Increases price transparency
Lowers the administrative costs
Lowers the transaction costs as automation improves flexibility
Lowers the search costs
Improves product quality, with emphasis on eliminating defections as sellers and buyers collaborate
Organizations carry less stock as B2B e-commerce improves efficiency of the procurement services.
Methods of purchasing goods Firms may buy direct goods involved in the production process or indirect goods, which are not connected to the production process (Laudon & Traver, 2014). Contract purchasing and spot purchasing are the two methods of purchasing goods. Contract purchasing is associated with long-term agreements made to purchase products while also agreeing to terms of trade, quality, stated p...