B2G is the acronym for Business to Government, an English term that means “Business to Government”. In other words, this is the name given to trade carried out by private companies for government institutions at the municipal, state and federal levels.
According to the OECD, cited by E-commerce Brasil , approximately 13% of Brazil's GDP is allocated to public procurement. In 2020, this percentage amounted to R$ 975 billion, a lucrative opportunity for merchants like you.
HOW DOES B2G WORK?
In B2G, the client is a governmental institution at the municipal, state, or federal level that purchases products and/or services through bidding. In Brazil, a bidding process is a type of procurement procedure governed by Law 8.666/1993.
Every time a government agency needs to make a purchase, it opens and publishes a public tender. It is from a public notice that a private company such as yours can compete to supply whatever has been requested.
Therefore, to become a government supplier, you need access to bidding notices. This is possible through bidding portals such as the " Federal Government Procurement Portal " or the " Public Procurement Portal ," among others.
According to Law 8.666/1993, in order for your company to participate in a bidding process, it must have legal qualifications, technical qualifications, economic qualifications, tax and labor compliance. As can be seen, the rigidity of the rules is the main characteristic of B2G.
If your company is qualified, it will compete with others that are trying to sell to the government. In this way, the governmental institution will choose the one with the best technical, legal, fiscal and economic conditions, and with the best price, to be its supplier.
Either way, whether your business is omnichannel or e-commerce, it doesn't matter, you can leverage the public market to increase your profits. For this, it is enough to create a bidding division, which will focus only on sales to the government.
ADVANTAGES OF WORKING IN BUSINESS TO GOVERNMENT
There are several advantages of opening a B2G division in your company, one of them being the possibility of increasing your profit. But in addition, if you successfully fulfill your first contracts, your company will be able to gain credibility in the market and win the next bids more easily.
Another positive point is that the government is a good payer. That is, you have the security that you will receive, that there will be no default. And finally, it is worth saying, when the government buys, it buys with pleasure. That is, it is a lady buys, in large quantities. And that alone is worth the B2G ticket.
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