B2B stands for "business-to-business" and refers to a situation where one business makes a commercial transaction with another. In B2B, companies create products and services for other businesses and organizations. B2B transactions tend to happen in the supply chain, where one company will purchase raw materials from another to be used in the manufacturing process. B2B transactions are different from B2C (business-to-consumer) and B2G (business-to-government) transactions, which involve a company selling products or services directly to individual consumers or government entities, respectively.
Some key differences between B2B and B2C include:
- In B2B, there are business people on both sides, whereas in B2C there is normally one business person and one consumer.
- B2B transactions are pursued by need (because the other business needs it), whereas in B2C, they are expectations rather than needs.
- B2B has many sellers and different stores, whereas B2C is usually just one supplier.
- B2B concentrates on raw data for another company, but B2C focuses on producing something for consumers.
B2B companies have unique challenges, including cash flow management, and must continually innovate and maintain customer loyalty. B2B sales is a sales model where products or services are sold from one business to another. B2B content marketing is using content to attract an audience, build brand awareness, collect leads, and drive sales.
