Business to Business Essay Example | Topics and Well Written Essays - 2000 words

Business to Business - Essay ExampleAmazon.com, the worlds largest online retailer, has developed improved mechanisms for promoting its B2B e-business transactions. This paper will analyze Amazons B2B arrangements with other companies and the nature of B2B transactions the company engaged in. In addition to discussing Amazons technical architecture that supports its B2B transactions, the paper will also determine the benefits and drawbacks of these transactions. Amazons B2B transactions Amazon.com has developed B2B arrangements well with firms across the globe. According to the Forbes writer Kanellos, Amazon is under an ongoing evolution process where the organization is transferring from a consumer retailer to a logistics provider to business houses. Amazon allows third parties (or external marketers) to transmit their products by means of its online retail work. Firms can display their inventory information, sell their products, and receive payments online once they created an a ccount in Amazon.com. In addition, sellers can also make use of Amazons Webstore, which would help them take advantages of search locomotive optimization and backend organization. As Kanellos points out, the volume of products sold by external marketers on Amazon website increased to 36 percent. Amazon follows an interesting B2B model in delivering services to third-party retailers. Traditionally, a store owner or a wholesaler considers the difference between the retail and wholesale price as its profit. In contrast to this constituted business practice, Amazon likes to obtain a commission on its online retail services. Market analysts observe that this business model has greatly assisted the company to push in B2B marketing. The organization has developed an affiliate program for promoting its products and its online retailers. Businesses can earn income when Amazon products are purchased through clicking those firms advertisement link. Publishing is another B2B service offered by the Amazon. The company launched its self-publishing site in 2011with intent to assist individuals to self-publish their movies, music, and books online and thereby to eliminate intermediary costs. at once an individual obtains a copyright on his products like books or movies, he can use the advertisement and payment solutions provided by the Amazon. The company offers free publishing options and finds its revenues through royalty payments and shopping fees. As Smith opines, the fulfilment program is Amazons one of the major advancements in its B2B environment this program allows organizations to store and ship their products through Amazons fulfillment center. Once the Amazon fulfillment center receives the items sent by companies, those items are cataloged into the firms system. Under this option, companies can either sell their offerings through Amazon.com or sail through the sales process using their own techniques. When items are ordered, Amazon fulfills the orders and del ivers the products to the end customers directly. Amazons back office system assists business houses to track the fulfillment. It is determine that Amazon has B2B relationships with different sizes of businesses ranging from sole traders to corporate giants. As per Amazons B2B strategy, new and un-established companies need to commence their operations with personal accounts.