B2B

1
B2B
What is it?

• Seller Behavior
• Fewer clients
• More important clients
• Bigger bucks per transaction
• Buyer Behavior
• Not as capricious
• Follows a budget
• Has some similar characteristics

2
Let talk about MONEY

• B2B
• Approx. 48 Billion in 1998
• Approx. 100 Billion in 1999
• 1.1 to 3.9 Trillion in 2003, depending on who
  you ask

• B2C
• Approx. 56 Billion in 1998
• Approx 100 Billion in 1999
• Max out at around 200 Billion, depending on who
  you ask

3
P2P (Path to Profitability)
Irrationally exuberant investors have wised up.
Now investors are considerably more skeptical
about EC.

• Amazon has over 70 of the online book market and
  loses hundreds of millions per year
• Several EC vendors are on the ropes, like CD NOW,
  Peapod, Boo, Toysmart,
• B2B companies, in aggregate, has a better P2P
  than B2C companies

4
Source Kaplan, S. and Sawhney, M., E-Hubs The
New B2B Marketplaces, Harvard Business Review,
May-June 2000, p. 306