B2B stands for “business-to-business,” and refers to commercial transactions between two businesses rather than between a business and a consumer (B2C).
B2B transactions can involve the sale of products, services, or information between two businesses, with one business serving as a supplier or vendor and the other as a buyer or customer.
How do B2B transactions work?
B2B transactions are typically more complex and involve larger volumes of goods or services than B2C transactions. This is because they often involve longer sales cycles and require more customized solutions to meet the needs of the specific business. B2B transactions can take place through channels such as direct sales or e-commerce platforms, or through intermediaries such as wholesalers or distributors.
Examples of B2B transactions include:
- The sale of raw materials from a supplier to a manufacturer;
- The purchase of software services from a technology provider by a business; or
- The hiring of a marketing agency by a corporation.
B2B transactions are a critical part of the global economy, driving innovation, growth, and job creation.
