- vivianLv 51 decade agoFavorite Answer
Business-to-business (B2B) is a term commonly used to describe electronic commerce transactions between businesses, as opposed to those between businesses and other groups, such as business and individual consumers (B2C) or business and government (B2G).
B2B is also commonly used as an adjective to describe any activity, be it B2B marketing, sales, or e-commerce, that occurs between businesses and other businesses rather than between businesses and consumers. Similar to B2B, B2G is often meant to refer to B2G Marketing.
Automated Ecommerce Transactions
It is a term also used in electronic commerce and to describe automated processes between trading partners.
The volume of B2B transactions is much higher than the volume of B2C transactions. One reason for this is that businesses have adopted electronic commerce technologies in greater numbers than consumers. Also, in a typical supply chain there will be many B2B transactions but only one B2C transaction, as the completed product is retailed to the end customer.
An example of a B2B transaction is a chicken feed company selling its product to a chicken farm, which is another company. An example of a B2C transaction is a grocery store selling grain-fed chickens to a consumer. B2B can also describe marketing activities between businesses, not just the final transactions that result from marketing, though the term can be used to identify sales transactions between businesses (also referred to as "institutional sales"). For example, a company selling photocopiers would more likely be a B2B sales organization than a B2C sales organization.
"Business-to-business" can also refer to all transactions made in an industry value chain before the finished product is sold to the end consumer.
- 1 decade ago