Updated Jul 2, 2023 Business-to-business (B2B) refers to the exchange of goods or services between businesses, rather than between a business and a consumer. This type of transaction is commonly seen in supply chains where one business provides products or services that are used by another business. A classic example of a B2B transaction is when a manufacturer sells products to a retailer. The manufacturer produces a product and sells it to the retailer who puts the product on their shelves for the end consumer to purchase. In this case, the manufacturer is the supplier and the retailer is the customer. Another example is when one business hires another business to provide services like accounting, legal or consulting services. For instance, a food manufacturer might hire an accounting firm to manage their financial records, so they can focus on producing high-quality food products. Here, the manufacturer is the buyer, and the accounting firm is the service provider. B2B transactions help businesses grow and expand by providing access to products and services necessary to operate their business. By collaborating with other businesses, companies can improve their products and services, increase efficiency, and reduce costs. Conducting B2B transactions also helps businesses build relationships with other companies and can lead to long-term partnerships. In general, B2B is important for facilitating economic growth in a wide range of industries.Definition of Business-to-Business (B2B)
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Why B2B Matters
Business Economics