Business-to-business (B2B), also called B-to-B, is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-business refers to business that is conducted between companies, rather than between a company and individual consumer.
KEY TAKEAWAYS
- Business-to-business (B2B) is a transaction or business conducted between one business and another, such as a wholesaler and retailer.
- B2B transactions tend to happen in the supply chain, where one company will purchase raw materials from another to be used in the manufacturing process.
- B2B transactions are also commonplace for auto industry companies, as well as property management, housekeeping, and industrial cleanup companies.
- Meanwhile, business-to-consumer transactions (B2C) are those made between a company and individual consumers.
