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Business-to-Business (B2B)

Business-to-Business (B2B)

What Is Business-to-Business (B2B)?

Business-to-business (B2B), likewise called B-to-B, is a type of transaction between businesses, like one including a manufacturer and distributer, or a distributer and a retailer. Business-to-business alludes to business that is directed between companies, instead of between a company and individual consumer. Business-to-business remains as opposed to business-to-consumer (B2C) and business-to-government (B2G) transactions.

Figuring out Business-to-Business (B2B)

Business-to-business transactions are common in an ordinary supply chain, as companies purchase parts and products, for example, other raw materials for use in the manufacturing processes. Completed products can then be sold to individuals by means of business-to-consumer transactions.

With regards to communication, business-to-business alludes to methods by which employees from various companies can interface with each other, for example, through social media. This type of communication between the employees of at least two companies is called B2B communication.

B2B E-Commerce

Late in 2018, Forrester said the B2B e-commerce market topped $1.134 trillion — over the $954 billion it had projected for 2018 in a forecast delivered in 2017. That is generally 12% of the total $9 trillion in total US B2B sales for the year. They anticipate that this percentage should move to 17% by 2023. The internet gives a robust environment in which businesses can learn about products and services and lay the foundation for future business-to-business transactions.

Company sites permit closely involved individuals to find out about a business' products and services and start contact. Online product and supply exchange sites permit businesses to look for products and services and start procurement through e-procurement interfaces. Specialized online directories giving data about specific industries, companies and the products and services they give likewise work with B2B transactions.

Special Considerations

Business-to-business transactions expect planning to find lasting success. Such transactions depend on a company's account management faculty to lay out business client connections. Business-to-business connections must likewise be sustained, normally through professional cooperations prior to sales, for fruitful transactions to occur.

Traditional marketing rehearses additionally assist businesses with interfacing with business clients. Trade distributions aid in this work, offering businesses opportunities to promote in print and online. A business' attendance at gatherings and trade shows likewise constructs awareness of the products and services it gives to different businesses.

Illustration of Business-to-Business (B2B)

Business-to-business transactions and large corporate accounts are commonplace for firms in manufacturing. Samsung, for instance, is perhaps of Apple's largest provider in the production of the iPhone. Apple additionally holds B2B associations with firms like Intel, Panasonic and semiconductor producer Micron Technology.

B2B transactions are additionally the foundation of the automobile industry. Numerous vehicle parts are manufactured freely, and auto manufacturers purchase these parts to gather automobiles. Tires, batteries, hardware, hoses and door locks, for instance, are generally manufactured by different companies and sold straightforwardly to automobile manufacturers.

Service suppliers additionally participate in B2B transactions. Companies specializing in property management, housekeeping, and industrial cleanup, for instance, frequently sell these services only to different businesses, as opposed to individual consumers.


  • In the mean time, business-to-consumer transactions (B2C) are those made between a company and individual consumers.
  • Business-to-business (B2B) is a transaction or business led between one business and another, like a distributer and retailer.
  • B2B transactions will more often than not occur in the supply chain, where one company will purchase raw materials from one more to be utilized in the manufacturing system.
  • B2B transactions are likewise commonplace for auto industry companies, as well as property management, housekeeping, and industrial cleanup companies.