B2B (Business-to-Business) refers to business-to-business rather than business-to-consumer. This type of trade is conducted between businesses, manufacturers, wholesalers, distributors and other organisations, as opposed to B2C (business-to-consumer), the sale of products or services to individual consumers.
B2B businesses often involve larger volumes of goods, higher value transactions and a more complex sales process. Companies in the B2B market often have special needs and requirements and need a customised solution to meet their needs. This can include customising products, providing special services and offering special payment terms.
Examples of B2B products and services are raw materials, business equipment and professional services such as consulting and financial services. In some industries, B2B accounts for the majority of sales. In manufacturing, wholesale and distribution, for example, B2B sales are more common than B2C sales.
One of the main differences between B2B and B2C is the buying process. B2B purchasing decisions are often made by a group of people and involve several departments and decision makers, whereas B2C purchasing decisions are made by individuals. In addition, B2B sales cycles tend to be longer and more complex, often requiring multiple rounds of negotiation and approval.
In summary, B2B is the commercial transaction between businesses, a type of trade conducted between companies, manufacturers, wholesalers, distributors and other types of organisations. B2B transactions often involve larger quantities of goods, higher value transactions and a more complex sales process tailored to the specific needs and requirements of the companies involved.
