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    Business-to-Business (B2B)

    Business-to-business (B2B) refers to product or service transactions made between two businesses, rather than between a business and an individual consumer.

    What Is Business-to-Business (B2B)?

    In business-to-business (B2B) models, businesses create products or services to sell directly to other businesses, rather than to individual customers. 

    There are several ways B2B transactions take place. An organization might create materials that another business buys and uses as part of their supply chain, for example. Or, a business might create a technology, such as communications software, that’s designed for a business’ infrastructure. Still others might sell commercial real estate for other organizations, or create point-of-sale technology for businesses. In each of these cases, the business markets and sells directly to other businesses. 

    B2B transactions can be larger and potentially more expensive than business-to-consumer (B2C) transactions. As such, they sometimes require different levels of professional relationship-building, account management, inventory management, and cash-flow management.

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