Business-to-business

Uncommon card · No. 100259

Business-to-business (B2B, BtoB or B4B) refers to trade and commercial activity where a business sees other businesses as its customer base. This typically occurs when: A business sources materials for its production process for output (e.g., a food manufacturer purchasing salt), i.e. providing raw material to the other company that will produce output. A business needs the services of another for operational reasons (e.g., a food manufacturer employing an accountancy firm to audit their finances). A business re-sells goods and services produced by others (e.g., a retailer buying the end product from the food manufacturer). Business-to-business activity is thought to allow business segmentation. B2B is often contrasted with business-to-consumer (B2C) trade, the latter of which typically sells directly to the general public and consumers, rather than other businesses and organisations.

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