What is Business-to-Business? Definition, examples, and FAQs.

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What is Business-to-Business (B2B)?

Business-to-Business, also called B2B, is a form of transaction between two businesses, such as a manufacturer and a wholesaler, rather than between a business and a consumer (B2C).

Generally, B2B transactions happen in the supply chain, where a company would purchase raw materials from another for manufacturing purposes. B2B transactions are most common for the automobile industry companies, real estate management, housekeeping, and industrial cleanup companies.

Business-to-Business products or services are much more valuable than those at the consumer level. Since the risks associated with B2B are higher, the decision-making process requires a lot of planning and brainstorming involving all the stakeholders. Hence, this process may even require several months to come to a viable conclusion.

Examples of B2B transaction

Business-to-Business operates in a wide range of industries, from tech to manufacturing to financial services, retail, SaaS, and so on.

Samsung is one of Apple’s largest suppliers in the manufacturing of the iPhone. Apple also has B2B accounts with many other large corporates such as Panasonic and Micron Technology.

In the automobile industry, while the vehicle components are manufactured independently, many manufacturers purchase these components to assemble the automobiles. Things such as tires, hoses, locks, etc. are usually manufactured by various companies and then sold directly to the automobile manufacturer.

SaaS companies can also be provided by a B2B transactional model. Asana, Dropbox, and many other SaaS companies are placed as B2B propositions.

How does B2B work?

Any good B2B marketing strategy requires following the crucial steps necessary in marketing planning, i.e., establishing your audience, building an authoritative image, creating a strong content strategy, and expanding your channels.

Similarly, as B2C marketing, another effective way of growing your business can be social media. Time and time again, websites such as LinkedIn have proven to be extremely helpful for companies performing well in the business-to-business area.

Online specialized directories can also become a great way to raise awareness about your products and increase their overall recognition in the market. This also helps companies get in touch with any other interested companies. Another thing to consider is trade publications, along with participation in trade shows and industry conferences.

In addition to all this, B2B companies also must pay attention to building relationships with other companies prior to sales which makes networking a vital aspect of B2B marketing strategy.


Q: What is business to business?

A: Business to business refers to a type of transaction between two businesses. It involves a business selling a product or service and another business buying it from them.

Q: What does B2B stand for?

A: B2B is an acronym for Business to Business type transactions.

Q: What is the difference between B2B and B2C?
A: B2B involves a transaction between one business and another while B2C involves a transaction between a business and a consumer.

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