Business To Business - B To B

AAA

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.

INVESTOPEDIA EXPLAINS '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. 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 FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
Related Articles
  1. Entrepreneurship

    Six Steps To A Better Business Budget

    This easy but essential process helps owners ensure that their businesses can stay afloat.
  2. 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.
  3. Fundamental Analysis

    Sector Rotation: The Essentials

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

    Getting To Know Business Models

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

    Find Your Niche Market

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

    Why Successful Business Owners Sell Out

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

    Plans The Small-Business Owner Can Establish

    Don't hesitate to adopt a smart plan for you and your employees.
  8. Stock Analysis

    Alibaba's Goal: Supplant eBay, Amazon and Paypal

    Within hours of its IPO, Alibaba's market cap surpassed Walmart's. So why is it that so many people still don't know what the Chinese company does?
  9. Entrepreneurship

    How To Use Facebook As A Marketing Tool

    Facebook can be a viable marketing platform for your business. It can even earn you revenue.

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center