Business To Business - B To B


DEFINITION of 'Business To Business - B To B'

A type of commerce transaction that exists between businesses, such as those involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between companies, rather than between a company and individual consumers. This is in contrast to business to consumer (B2C) and business to government (B2G). A typical supply chain involves multiple business to business transactions, as companies purchase components and other raw materials for use in its manufacturing processes. The finished product can then be sold to individuals via business to consumer transactions.

Also called B to B or B2B.


Loading the player...

BREAKING DOWN 'Business To Business - B To B'

An example that illustrates the business to business concept is automobile manufacturing. Many of a vehicle's components are manufactured independently and the auto manufacturer must purchase these parts separately. For instance, the tires, batteries, electronics, hoses and door locks may be manufactured elsewhere and sold directly to the automobile manufacturer.

In the context of communication, business to business refers to methods by which employees from different companies can connect with one another, such as through social media. This type of communication between the employees of two or more companies is called B2B communication.

  1. Peer-To-Peer (Virtual Currency)

    The exchange or sharing of information, data, or assets between ...
  2. Customer To Customer (C2C)

    A business model that facilitates an environment where customers ...
  3. Value-Added Network (VAN)

    A private network provider hired by a company to facilitate electronic ...
  4. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, ...
  5. Warm Calling

    The solicitation of a potential customer with whom a sales representative ...
  6. Business To Government - B To G

    Professional affairs conducted between companies and regional, ...
Related Articles
  1. Taxes

    5 States Without Sales Tax

    Learn about the five states that do not charge sales taxes and about other taxes the states levy instead in order to generate revenue.
  2. Entrepreneurship

    5 Good Habits Every Entrepreneur Needs

    Understand who an entrepreneur is and what an entrepreneur does. Learn about the 5 good habits that every entrepreneur should have.
  3. Economics

    What Does Business-to-Business Mean?

    The term business-to-business refers to transactions or communication that takes place between two or more businesses.
  4. Entrepreneurship

    Six Steps To A Better Business Budget

    This easy but essential process helps owners ensure that their businesses can stay afloat.
  5. Entrepreneurship

    8 Tips For Starting Your Own Business

    Do you have what it takes to be a top entrepreneur? Learn tips on what to do to make it happen.
  6. Fundamental Analysis

    Sector Rotation: The Essentials

    We look at how the market signals impending economic cycles and sector performance during each stage.
  7. Entrepreneurship

    Getting To Know Business Models

    Learning how to assess business models helps investors identify companies that are the best investments.
  8. Retirement

    Find Your Niche Market

    Determine which clients suit you and build your business around them.
  9. Entrepreneurship

    Why Successful Business Owners Sell Out

    Learn the motives that drive companies into the arms of an acquirer.
  10. Entrepreneurship

    Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  1. What are some examples of debit notes in business-to-business transactions?

    Debit notes are a form of proof that one business has created a legitimate debit entry in the course of dealing with another ... Read Full Answer >>
  2. How has the Internet impacted Value-Added Network (VAN) providers?

    The advent and proliferation of Internet-based service providers and cloud technology has created an easier, cheaper and ... Read Full Answer >>
  3. What are some examples of barter transactions?

    Barter transactions occur when economic actors, such as individuals, businesses and nations, exchange goods or services without ... Read Full Answer >>
  4. What are the different types of letters of credit?

    Letters of credit are important assurances or guarantees to sellers that they will be paid for a large transaction, particularly ... Read Full Answer >>
  5. How and where is revenue recognized from barter transactions?

    Not all transactions of goods or services involve a monetary medium, such as dollars. Sometimes, companies exchange saleable ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  3. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  4. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  5. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  6. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
Trading Center