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Business to Business (B2B)

What does Business to Business mean?

Business to Business, popularly known as B2B, is the type of business transaction that exists between two or more companies. In B2B, companies sell to each other rather than selling to individual or household consumers.

The B2B companies offer product and services which other businesses need for the day-to-day business operations. In some cases, they serve government agencies and non-governmental organisations.

In the manufacturing sector, B2B provides raw materials, semi-finished goods and components. In the service sector, however, B2B offers consultation, marketing, legal, etc. services.

Contrary to the general understanding of who the B2B customers are, some companies sell to both businesses and individual consumers. Examples are software and hardware companies, financial institutions and healthcare companies.

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