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. Czech-Out (Czexit)

    Czech-out is a Czech Republic version of the term Brexit, which ...
  2. Departugal

    Departugal is the Portuguese spinoff of the term Brexit, which ...
  3. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the ...
  4. Soft Fork

    A soft fork (or sometimes softfork) is a change to the software ...
  5. Enron

    A U.S. energy-trading and utilities company that housed one of ...
  6. Bail-In

    A bail-in is an alternative to bail-outs of failing banks where ...
Related Articles
  1. Trading

    Becoming An Elite Trader: The Game Plan

    To be an elite trader, you don't need a finance degree, but you must have a plan, and a serious, systematic approach to the business of trading.
  2. Investing

    The 10 Must Watch Movies For Finance Professionals

    Finance makes for great cinema; here are 10 of the best offerings by Hollywood on the subject.
  3. Professionals

    How Much Does Your Undergrad GPA Matter When Applying To An MBA Program?

    When applying to a business school, an important metric is an applicant's undergraduate GPA. But other features of an MBA application are also important.
  4. Retirement

    5 Questions to Solve Before Retiring

    Looking to make an informed and rational retirement decision? Nail down the answers to these five questions, and you'll be well on your way.
  5. Personal Finance

    Long-Term Care Policies Are Falling Out Of Favor

    Americans are buying fewer long-term care insurance policies. In response to this trend, the LTC industry is offering new hybrid life insurance products.
  6. Markets

    Chances of Bernie Supporters Voting for Trump

    Find out why some of Bernie Sanders' supporters, especially working-class whites, may opt to vote for Donald Trump instead of Hillary Clinton.
  7. Investing

    What Is the Best Age to Get Life Insurance?

    Learn about the optimal time for purchasing personal life insurance and why delaying the buying decision may have costly consequences.
  8. Retirement

    4 Reasons Why Americans Retire in Colombia

    Learn about the top four reasons why Americans are choosing to retire in Colombia.
  9. ETFs & Mutual Funds

    Top 3 Artisan Funds for Retirement Diversification in 2016

    Learn about Artisan Partners, its history of outperformance compared to its competitors and which three funds to consider for retirement diversification.
  10. Personal Finance

    How Reverse Mortgages Work

    Looking into a reverse mortgage may be a good option for accessing the equity in your home if you are retired.
RELATED FAQS
  1. How can I fund A Roth IRA if my income is too high to make direct contributions?

    Roth IRAs are not available to you if you are a high income earner – unless you use the following strategy. Read Answer >>
  2. Are my Social Security benefits reduced if I receive extra pensions from different ...

    Understand how collecting a pension can affect your Social Security benefits, depending on whether you were employed in the ... Read Answer >>
  3. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ... Read Answer >>
  4. What is the Difference Between Operating Income and Net Income?

    Understand the difference between operating income and net income, including the calculations and interpretations of each, ... Read Answer >>
  5. How does my spousal Social Security benefit work?

    Understand the basics of spousal Social Security benefits, when you are eligible to apply, and how your age and employment ... Read Answer >>
  6. Why would you keep funds in a money market account and not a savings account?

    Read about the differences between money market accounts and savings accounts, and see why a depositor would elect a money ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center