Term

What is B2B?

2 MIN READ

B2B

B2B (abbreviation for business-to-business) is an exchange of products, services, or information between two businesses.

The B2B market is vast and includes different types of merchants from those who sell industrial supplies to those who offer payroll processing and software development.

B2B companies exist in every industry and B2C companies may be involved in B2B transactions such as buying materials for their products from other vendors.

For instance, the accessories industry. Every watch that ends up on a consumer’s hand contains dozens of parts and products that the manufacturer purchased through various suppliers in a B2B transaction.

B2B transactions typically occur under three circumstances: 

  1. When a business is sourcing materials like watch parts
  2. When a business is sourcing services, such as hiring an accounting firm to manage finances 
  3. When a business is sourcing end products to resell them, like a dropshipper who purchases a watch from a manufacturer to sell it to a customer.

There are considerably more B2B transactions than B2C ones because for every B2C transaction, there are dozens, hundreds, or even thousands of B2B transactions that have to happen first.

Examples of B2B companies

Alibaba, Amazon Business, General Electric, Quill, Curbell Plastics, Medline, Blake Envelopes, etc.

 

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