Business to business. Or more commonly known as B2B. These businesses are on the rise in recent years. And it has already infiltrated numerous industries all over the world.
It has provided companies with additional assistance in manufacturing products or offering services to their consumers. And it looks like B2B will not go away at some point in time. This is thanks to the convenience it grants.
But with all that buzz surrounding B2B industries, one may wonder what it is all about.
What are “B2Bs”?
Investopedia defines it as “a form of transaction between businesses.”
To better illustrate, an establishment such as a convenience store would purchase supplies directly from the manufacturer. Likely, a particular product that the store is selling.
A more recognizable example is tech giant Apple buying OLED screens from rival company Samsung. Since the South Korean company produces huge quantities, and Apple requires millions for the production of its iPhones.
Additionally, it creates a network between employees of various companies. Now with one social media platform to establish that connection.
Investopedia calls this B2B communication.
With the definition now set aside, one may now ask which industries could flourish from B2B and how this kind of transaction helps the companies in these sectors with their daily operations.
The first industry where B2B can flourish is e-commerce.
The retail industry had a rough year in 2017, with numerous retailers such as Toys “R” Us and Wet Seal declaring their bankruptcies. The Sears Holding Corporation was also not safe from the so-called retail apocalypse when reports said that 39 Sears and 64 Kmart stores closed down early this year.
The Hope of E-Commerce
As the retail industry take more blows from the shift in how consumer transactions are dealt with nowadays, e-commerce is looking to present a bright beacon of hope for the doomed retailers.
According to a study from Forrester Research, e-commerce sales will experience a 4.1 percent increase, climbing from 12.9 percent to 17 percent, by 2022.
However, with other retailers trying to reach the success of Amazon, the competition can get pretty crowded. So for those in the search of another way to prosper, they can try to develop a B2B e-commerce presence. Skeptics can look at the achievement of Staples, as evident by its B2B sales that hold 60 percent of the said company’s overall incomes.
Home Depot is also doing well when it adopted B2B, with purchases from professional customers now accounting for 45 percent of its overall sales. The company also reported that when compared to its B2C transactions, its B2B segment has a faster pace in terms of growth.
Aside from boosting sales, shifting to B2B can open more doors for marketing opportunities. Such move can also provide more uses for the assets that a company already possesses.
Another industry that can go big with B2B is real estate.
Processes in its businesses can consume a lot of time, and people have to deal with many middlemen as part of their transactions. When real estate companies incorporate B2B in their operations, they can now reduce the time spent on various reasons such as waiting in line and going to these middlemen.
Solving a Problem
One company has been recently making waves in the real estate industry with the B2B solution it has developed. Vancouver-based RESAAS Services Inc.(TSXV:RSS, OTCMKTS:RSASF) offers real estate companies the technology platform they can use to further improve their performance.
Its solution is the BrokerOS. Described as an online communication hub and connects more than 400,000 agents all over the world. In addition, it also guarantees companies that the messages they send to their agents are prioritized. Agents can also use the platform to expand their professional networks and to keep updated with the newest information and opportunities for collaboration with fellow agents with the help of its virtual bulletin board feature.
More than One Capability
Companies utilizing the platform can also make private communication groups that cater to a diverse selection of business interests. These interests include buyer needs, leads, open houses, vendors and sales training materials, as well as exclusive and coming soon listings.
RESAAS’ BrokerOS simplifies the process of communication between the agent and the company and between fellow agents. It also acts as a compact tool to keep the connection active, and for agents who refuse to change their routines, the platform ensures that it will not break their workflow as they can still choose to receive alerts via email.
In the latest news, RESAAS announced that the posting of premarket and off-market listings in its RealTimeMLS platform in San Francisco skyrocketed by 63 percent. The company also reported that buyer need request posts received a 56 percent boost from January to May 2018.
The increase in postings serves as great news. Two years ago, RESAAS just launched its RealTimeMLS solution. The move makes such rise in activity an indication. More and more people have been using the solution despite being a young technology platform in the real estate industry. It recently shifted its focus to the said listings. And also buyer needs, which is attributed to such rise.
Here’s a quote from RESAAS Vice President of Operations, Danielle Sissons.
“We are pleased to have supported the exceptional growth of RealTimeMLS in the San Francisco market over the past two years. Focusing primarily on the posting of pre-market and off-market listings and buyer needs has aided in the adoption and engagement of activity levels seen within the solution.”
Lastly, the biotech industry can take B2B to new heights as well. The aforementioned sector is said to be a thriving area. Mainly because of the developments in medicine. And the growing roster of industries using its products.
More people are becoming health-conscious lately. Some companies are taking their opportunities to help them. And, in effect, they expand their businesses as well.
Solving an Individual’s Problem for Business
Forbes cited a company named Ixcela as an example. It detailed that the firm, which is considered as “the Internal Fitness Company,” is providing blood analysis to spot any health complications and diseases that are brewing in a person’s body. These ailments include Alzheimer’s, diabetes and even Parkinson’s.
Coming from a consumer-focused model, it then incorporated B2B in its business. And now, a number of organizations approach Ixcela to conduct checkups every year for their employees.
These three industries are just the tip of the seemingly expanding list where B2B can be applied and grow, especially now that businesses are starting to recognize that they need other companies to help them meet their demands and keep their operations going.