Business-to-business or 'B2B' is a term commonly used
to describe
transaction of goods or services between businesses as
opposed to that between businesses and other groups, for example
individual consumers (B2C) or public.
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administration (B2G)). It is a term that originated and is
almost exclusively used in electronic commerce and typically takes the
form of automated processes between trading partners and is performed
in much higher volumes than (B2C) applications.
For example, a company that makes chicken feed would sell it to a chicken farm,
another company, rather than directly to consumers. An example of a B2C
transaction would be a consumer buying grain-fed chickens at a grocery store.
B2B can also encompass marketing activities between businesses, and
not just the final transactions that result from marketing. B2B also
is used to identify sales transactions between business (also
sometimes referred to as 'Institutional Sales'). For example a company
selling photocopiers would likely be a B2B sales organization as
opposed to a B2C sales organization.
The term 'Business to Business' can also mean all transactions made in
an industry value chain 'before' the finished product is sold to the
end-consumer for final consumption. |
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