Business To Business - B To B

Loading the player...

What does 'Business To Business - B To B' mean

Business to business (B To B) is 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.

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.

RELATED TERMS
  1. Business To Consumer - B To C

    Business or transactions conducted directly between a company ...
  2. Business Broker

    A professional who specializes in the purchase and sale of companies. ...
  3. Business Relations

    The connections that exit between entities involved in the business ...
  4. Business Credit Score

    A number indicating whether a company is a good candidate to ...
  5. Wholesale Banking

    Banking services between merchant banks and other financial institutions. ...
  6. Wholesale Trade

    An economic indicator that measures the value in U.S. dollars ...
Related Articles
  1. Entrepreneurship

    The Basics of Business Development

    What exactly is business development? Sales, marketing, growth? It's all that and more. Investopedia explains the concept and provides examples.
  2. Economics

    Explaining Business-to-Consumer

    Business-to-consumer (BtoC or B2C) is a business model whereby a company sells its products directly to consumers.
  3. Entrepreneurship

    The 4 Most Common Reasons a Small Business Fails

    Discover the most common reasons small businesses fail, including capital formation, management concerns, planning issues and marketing missteps.
  4. 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.
  5. Entrepreneurship

    5 Biggest Challenges Facing Your Small Business

    Thinking about starting your own business? Read this article to get a leg up on what you could face.
  6. Entrepreneurship

    Business Startup Costs: It's In The Details

    Don't overlook the details when starting up a business. It's the small expenses that have the potential to make or break a great idea.
  7. Entrepreneurship

    Ready to Retire? Here's How to Sell and Close Your Small Business

    Learn the essential steps to prepare to sell your business with the best possible outcome, a secure retirement for you and your family.
  8. Personal Finance

    What Is A Business Analyst And How Much Do They Make?

    Business Analysis has been a buzzword as a career option. Here is what business analysts do and how much they earn in salary and compensation.
  9. Economics

    Understanding Forward Integration

    Forward integration happens when a business takes over functions that were originally performed by its partners farther down the supply chain.
  10. Entrepreneurship

    4 Management Tips for a Seasonal Business Owner

    Learn about ways for business owners running seasonal businesses to ensure the lives of their businesses and promote success through the off-season.
RELATED FAQS
  1. How much working capital does a small business need?

    Learn about the three primary factors that determine how much working capital is needed by a small business, including business ... Read Answer >>
  2. What do you need to know to create a business model?

    Learn what a business model is, its importance and the primary elements that are needed in order to create a successful business ... Read Answer >>
  3. What economic indicators are important for investing in the wholesale sector?

    Understand what economic indicators are important for people looking to invest in the wholesale sector. Learn how a company ... Read Answer >>
  4. What is the point of developing a business model?

    Learn some of the benefits of developing a business model and how business models are used. Consider an example of business ... Read Answer >>
  5. What is the average annual dividend yield of companies in the wholesale sector?

    Find out more about the wholesale sector, what the dividend yield measures and the average annual dividend yield for companies ... Read Answer >>
  6. What is the average debt/equity ratio of companies in the wholesale sector?

    Learn about the standard debt-to-equity ratios in the wholesale sector, and discover some of the many subindustries in the ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center