Business to business (B2B) companies' main consumer is other companies rather than the general public or an individual consumer. An example of a B2B company is an engineering or manufacturing firm that sells its services or products to other businesses. This process normally happens within the supply chain sector.
Through this process, businesses can use the raw material or services sold to them to create their finalized product or service. However, the supply chain industry is not the only sector B2B interacts with. For instance, B2B communications refer to interactions over social media where both businesses are connecting.
B2B e-commerce has grown largely over the past year as well. Having access to other businesses' websites and products from anywhere at any time has created a resource-rich environment for growth in all business types.
B2B relationships need to be nurtured and planned out thoroughly. Careful planning and account management will allow for great B2B bonds to be procured and maintained into the future.
What are the benefits of B2B?
The benefits of B2B include increased efficiency, cost savings, improved customer service, and access to new markets.
How does B2B work?
In a B2B transaction, one business provides goods or services to another business in exchange for payment. This transaction can take place online or offline.
What types of companies use B2B?
Many different types of companies use B2B transactions, including manufacturers, wholesalers, retailers, and service providers.
Fun Fact:
"In 2018, the B2B e-commerce market was estimated to be worth $12.2 trillion globally and is expected to grow to $15.5 trillion by 2023" (Statista, 2019).