Until Business to Business (B2B) portals came into existence there was not any viable tool to connect the internet and international trade. That was a time when internet penetrated into all the areas except international trade. During that time, in the absence of B2Bs a trader to go beyond one’s domestic trade was very expensive, therefore one retracted from the idea of making the cross over to international trade. Initially, traders imagined that the B2Bs are solely for international sellers or exporters, but as the B2Bs unveiled innovative features; they attracted all and sundry, including importers, transporters, brokers and service providers.
It is hard to find an exact definition for a B2B portal since it provides solution for advertising, finds valuable information to do business, allows businesses to interact with one another, provides database of international traders, etc. Since B2Bs are with multiple functions, it enables every trader irrespective of size or region to do business in a cost effective manner. Majority of the leading B2Bs provide free membership where one can post information about one’s company, which could be visible to members of that particular portal around the globe. The premium membership of these portals helps the trader to increase the visibility of one’s company and to use various other features included to enhance business.
As a matter of fact, the very concept of B2B is to encourage and empower small and medium businesses to conquer the areas they were not able to traverse hitherto. Besides, it helps to do so without investing a lot of money and time. Interestingly, even multi-national companies which have the global reach with offices or/and factories also begun to utilize the services of these portals extensively. In North America and Europe, B2Bs are the most sought after international trading tool for doing business regardless of size. In emerging economies like China and India, the idea of doing business using B2Bs is gradually catching up and most of the leading B2Bs are providing services that suit these economies. The interest shown by large business houses have boosted the morale of the B2Bs to bring out innovative features along with greater business opportunities.
Since every country has laid emphasis on hundred percent internet connectivity, any trader can do business from anywhere in the world through B2Bs. Prior to B2Bs, the small time traders were imprisoned to their markets since their presence was vital to their businesses. Unfortunately, even for leisure, these traders have to wait for off season or a lean patch. However, B2Bs empowered the small and medium enterprises to do business with consummate ease. The low cost and speed of doing business with anybody in the world has silently brought out a cultural revolution of sorts to the traders from different countries.
B2Bs have done, what any amount of advertisements could not do, by giving an opportunity to the traders to further be aware of products or/and services which could be suitable to their businesses. B2C (Business to Consumer) portals too were able to do the same but they were confined to regions and not able to do justice to far away places cost effectively. Nevertheless, B2Bs provided services cost effectively by overcoming international trade barriers and through economies of scale.