Business-to-Business E-Commerce

Abstract

Alibaba Group is a collection of Internet-based e-commerce companies, some of which are B2B (notably Alibaba.com); the others are B2C and EC services (e.g., payments). For a company overview, see news.alibaba.com/specials/aboutalibaba/aligroup/index.html . The company started as a portal for connecting Chinese manufacturers with buyers from other countries. By 2014, Alibaba Group became the world’s largest e-commerce enterprise. Its B2B operation (Alibaba.com) is the world’s largest marketplace. The fascinating story of the company is described by Charles (2014) and by Schepp and Schepp (2009).

Glossary

B2B marketing 

Marketing and sales made by manufacturers and wholesalers along the sell-side of the supply chain.

B2B portals 

Information portals for businesses.

Bartering exchange 

A company submits its surplus to the exchange and receives points of credit, which the company can then use to buy items that it needs.

Business-to-business e-commerce (B2B EC) 

Transactions between businesses conducted electronically over the Internet, extranets, intranets, or private networks.

Buy-side e-marketplace 

An e-marketplace owned by large buyers that invites sellers to browse and offers to fulfill orders.

Collaborative portals 

Portals that enable and facilitate collaboration.

Company-centric EC 

One-to-many and many-to-one markets where one company does either all the selling (sell-side market) or all the buying (buy-side market).

Consortium trading exchange (CTE) 

An exchange formed and operated by a group of major companies in one industry. They can be suppliers, buyers, or both.

Corporate (enterprise) portal 

A gateway to a corporate website and other information sources that enables communication, collaboration, and access to company information.

Desktop purchasing 

Purchasing done by employees without the approval of supervisors and without the involvement of a procurement department.

Direct materials 

Materials used in making products, such as steel in a car or paper in a book.

Dynamic pricing 

The rapid movement of prices over time and possibly across customers.

E-procurement (electronic procurement) 

The online purchase of supplies, materials, energy, work, and services. It can be done via the Internet or via a private network such as EDI.

Exchanges (trading communities or trading exchanges) 

Many-to-many e-marketplaces where many buyers and many sellers meet electronically to trade with one another.

Gamification 

Virtual games designed to support B2B training and decision making.

Group purchasing 

Orders from several buyers are aggregated so that better prices due to larger quantities purchased can be negotiated.

Horizontal marketplaces 

Markets in which trading is in a service or a product that is used in many types of industries. Examples are office supplies, PCs, or travel services.

Indirect materials 

Items, such as office supplies or light bulbs, which support operation and production.

Information portals 

Portals that store data and enable users to navigate and query those data.

Maintenance, repair, and operation (MRO) 

Indirect materials used in activities that support production.

Maverick buying 

A buying situation that occurs when a buyer makes unplanned purchases of items needed quickly, resulting in buying at non-pre-negotiated, and usually higher, prices.

Mobile portals 

Portals accessible via mobile devices, especially cell phones, smartphones, tablets, and other handheld devices.

Online intermediary 

A third-party entity that brokers the transactions between the buyer and seller and can be either a virtual or a click-and-mortar intermediary.

Partner relationship management (PRM) 

The strategy of providing comprehensive, quality e-services for business partners.

Procurement management 

The process of planning, organizing, and coordinating of all the activities pertaining to the purchasing of the goods and services needed by an organization.

Public e-marketplaces 

Third-party exchanges open to all interested parties (sellers and buyers).

Request for quote (RFQ) 

A form or document used as an “invitation” to take part in a reverse auction.

Reverse auction 

The auction process in which many sellers (suppliers) compute to fulfill orders requested by one buyer.

Sell-side e-marketplace 

The model in which a business sells products and services to business customers electronically, frequently over an extranet.

Vertical marketplaces 

Markets for one industry or one industry segment. Examples include marketplaces specializing in electronics, cars, hospital supplies, steel, or chemicals.

Virtual trade show 

Temporary or permanent showplaces where exhibitors present their new products to potential customers.

Vortals 

Vertical portals focusing on a single industry or industry segment.