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Business-to-business (B2B), or B-to-B, is a form of transaction between companies, for example between a manufacturer and a wholesaler or between a wholesaler and a retailer. A Business-to-business is business-to-business, rather than business-to-consumer transactions. Business-to-business transactions remain contrasted with business-to-consumer (B2C) and business-to-government (B2G) transactions.

Understand Business to Business (B2B)

Business-to-business transactions are common in a typical supply chain as companies buy components and products like other raw materials to use in manufacturing processes. The finished products can then remain sold to private individuals as part of business-to-consumer transactions.

In the context of communication, business-to-business describes methods with which employees from different companies can contact one another, for example via social media. This type of communication between the employees of two or more companies is called B2B communication.

B2B eCommerce

According to Forrester, the B2B e-commerce market was over $1.134 trillion at the end of 2018, compared to the $954 billion the company had forecast for 2018 in a forecast released in 2017. That’s about 12% of the total. Total B2B sales in the US that year were $9 trillion. They expect that percentage to rise to 17% by 2023. The Internet provides a robust environment for companies to learn about products and services and lay the groundwork for future business-to-business transactions.

Interested parties can find out about a company’s products and services and make contacts on company websites. Online websites for exchanging goods and supplies enable companies to search for products and services and initiate procurement via electronic procurement interfaces. B2B transactions remain also facilitated by dedicated online directories that provide information about specific industries and companies and the products and services they offer.

Example of a Business-to-Business (B2B)

Business-to-business transactions and large corporate accounts are commonplace for manufacturing companies. Samsung, for example, is one of Apple’s largest suppliers in the production of the iPhone. Apple also has B2B relationships with companies such as Intel, Panasonic and semiconductor manufacturer Micron Technology.

B2B transactions are also the backbone of the automotive industry. Many vehicle components remain manufactured independently, and automakers buy these parts to assemble cars. For example, multiple companies often manufacture tires, batteries, electronics, hoses, and door locks and sell directly to automakers.

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