B2B Ecommerce Key Terms

Learn more about B2B ecommerce solutions and make the right choice for your business

Business to business (B2B) ecommerce is the exchange of products and services online between two businesses. The concept of B2B ecommerce is similar to ecommerce transactions with consumers. The difference is that B2B ecommerce is much more common and often takes place without the knowledge of consumers. This is because many B2B transactions are made at a fraction of the cost a consumer pays for the same products, due to wholesale prices and other discounts given to businesses.

 

Business to business (B2B)

Business to business refers the exchange of goods or services between businesses that have partnered together. These transactions are secure so consumers do not have access to pricing information. The majority of ecommerce transactions are B2B and not business to consumer (B2C).
Try: Vista Consulting provides an explanation of the difference between B2B and B2C ecommerce.

Co-branding

Co-branding is an agreement between two organizations to create a partnership. The partnership is presented to the consumer through a single company with the brand, logo and product information.
Try: All Merchants provides an article on the benefits of using co-branding in ecommerce.

Digital cash

Digital cash is a system to set up digital money or merchant accounts with a specific bank. This allows ecommerce businesses to send and receive online payments.
Try: The College of Business at Austin State University provides a look at a cashless society and how digital cash and other online transactions are growing in popularity with businesses.

Secure servers

A secure server is a specialized server that uses encryption to keep unauthorized users from seeing messages and sensitive information passed through the system. All B2B ecommerce transactions take place on secure servers to keep company information from going public.
Try: FastVirtual provides a guides on secure servers, how to obtain an SSL, and common issues when using a secure server with other applications.

Service level agreement (SLA)

A service level agreement is used between a merchant and another merchant or a merchant and a consumer to define the boundaries of service. This explains what and when the service will deliver.
Try: CIO Magazine provides an introduction to service level agreements and explains why it is important to have one under specific circumstances.

Cost of goods sold

Cost of goods sold refers to the total cost for a consumer to purchase the finished product. In B2B ecommerce, cost of goods sold can refer to the total cost of purchasing the raw materials plus the total cost of manufacturing raw materials into the finished product.
Try: Accounting Coach provides more information on cost of goods sold.

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