What are the disadvantages of B2B e-commerce?


Quick Answer

The main disadvantages of B2B e-commerce include a limited market, long purchase decision time and a long sales process, according to azcentral. It also leads to an inverted power structure that gives more leverage to the buyer than the seller.

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Full Answer

The dynamics of B2B commerce are very different from those in a standard business relationship, and there are some distinct disadvantages, according to azcentral. B2B markets often have much smaller pools of buyers, perhaps in the thousands rather than millions, particularly if a company is supplying mature or niche products. Accordingly, each customer is more valuable, and if a business loses a client, it can have a severe impact.

B2B businesses can sometimes wait months for a decision to be made about their products. This is the result of a more complex decision making process involving more stakeholders, and it also depends on budget availability. In a B2B relationship the power structure is often inverted, according to azcentral. Standard consumers accept a set price for a set product, but businesses can often demand customizations or negotiate deals on the price because they know they wield more power over the situation. Finally, the sales time can be considerable for B2B sales because large contracts often require extensive negotiations, which may require face-to-face meetings and discussion.

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