Business-to-Business or B2B

What Is Business-to-Business (B2B)?

Definition: B2B stands for Business to Business and is defined as the cross-border business relationship between two or more businesses. Businesses entering into business-to-business relations have to work together to improve sales and expand their market share.

A simple example of B2B is a business company making spare parts like a UV bulb or Rubber pipes and selling it in bulk to a water purifier manufacturer who is also a Company. Such a transaction is known as B2B or Business to Business.

B2B can involve more cross-functional working relationships than other types of businesses.

These transactions fall into two buckets: one-off transactions where you just buy the goods or service directly from the seller rather than going through a middleman, and longer term arrangements that include selling inventory on behalf of your own business or selling services to other companies for a fee.

The B2B  marketing industry refers to the process of marketing, branding, and advertising services to other companies in a similar business niche, and often involving product development, support services, consulting services, and sales. A B2B company seeks to expand its market share by attracting new customers and clients through leading

While B2B means business to business (and vice versa), it can be a very broad term to encompass a variety of different companies with different functions and services. Such joint ventures are often called “partnerships”, “associates”, “subsidiaries”, “affiliates.

B2B products have several points in common:

  • Design (product)
  • Financing (partner)
  • Distribution (manufacturer)
  • Vendor relationships (manufacturer/distributor relationship)
  • Quality assurance / quality control (manufacturing operations)

Examples of B2B

1. Automobile Industry

A tire company can have a tire plant in one place and then sell tires from there to other automobile companies.

Another company could be making batteries for cars and sell those to bulk buyers of car batteries.

Some electrical companies specialize in electrical components and sell them to Businesses which require regular electrical parts. These are also common in Automobile industries such as head lights and tail lights.

2. Amazon B2B

Amazon initially was a B2C company but soon it started selling to business customers who wanted the products at bulk prices. Thus Amazon started a B2B portal which registers the tax information of Business buyers and facilitates Business buying

3. Apple B2B or Laptops B2B

Apple Computers or Laptop Computers are another example of B2b Buying. There are companies like Apple, HP and Dell who sell laptops and computers in bulk to business buyers. If you are starting a business with 100 employees, likely you will need many laptops and services for those laptops. These computer brands sell in bulk to such businesses which is an example of B2B selling.