COSTS MANAGEMENT IS CRUCIAL FOR B2B
ONLINE PAYMENT CHARGES CAN BE SUBSTANTIAL
In our trade, B2B is about bulk transactions.
Since B2B players move quantities and are in a market that is not only fiercely competitive but also challenging in inventory planning and management, the cash flow management is crucially important for a B2B participation.
No point in blocking customers' cash flow
The order placement in B2B usually takes a process which is lengthier than that of a retail purchase. Although we take partial advance payments for orders, we see no point in blocking customers cash flow for a period delivery by insisting on full advance payments.
Very high payment felicitation charges add up to a hefty sum.
Online payments involve transactional charges by multiple felicitators like Paypal or VISA.
There are other cost-builders such as bank-charges and exchange-rate conversions.
Considering that Credit Card and Payment felicitator may charge upto 3% once and in some cases, multiple times, combined with other charges, it adds up to an unnecessary cost-block that cuts a major chunk off the profits. Saving these unnecessary costs can not only add on to the profits, but also give elbow-room to handle the competition. It goes without saying that money paid is already adding to the costs.
​Costs makes competitiveness.
Saving on hefty online payment charges reduce costs. Reduced costs means better profitability and increased competitiveness. .
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Safety and Convenience.
Payments made through Conventional Bank wire-transfers are considered safer than using credit card to make online payments. It is also a lot more convenient.
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