Business-to-business (B2B)

Business-to-Business (B2B) is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Unlike Business-to-Consumer (B2C) transactions that occur between a company and individual consumers, B2B transactions occur between two or more businesses.

B2B transactions can occur in various contexts, including the supply chain, where businesses buy components or raw materials to use in their manufacturing processes. For example, a car manufacturer might purchase tires from a tire company for use in manufacturing vehicles.

Other examples of B2B transactions include:

  1. Service Provision: A business might hire another business to manage their customer service, IT, accounting, or HR functions.
  2. Software sales: A software company might sell their products to other businesses for use in their day-to-day operations. For example, a CRM (Customer Relationship Management) tool provider selling subscriptions to companies who want to manage their customer databases more effectively.
  3. Wholesaling: A manufacturer sells products in bulk to a wholesaler, who then sells on to retailers.
  4. Consultancy and professional services: Businesses often hire consultants or professional service providers (like law firms or advertising agencies) to help them solve specific problems or to improve their performance.

B2B sales often involve higher order values, longer sales cycles, and multiple decision-makers. As a result, relationship building and personal selling are often key aspects of the B2B marketing and sales process.

In recent years, B2B transactions have increasingly moved online, with the growth of B2B e-commerce platforms that streamline and simplify the purchasing process. This shift to digital has made it easier for businesses to compare products and services, read reviews, and make purchases on their own without the need for a sales representative.