Understanding B2B: Definition, Examples, and Strategies

B2B (business-to-business) refers to the exchange of products, services, or information between businesses, rather than between businesses and consumers. In other words, B2B involves selling or providing goods and services to other businesses, rather than to individual customers.

For example, a company that manufactures computer hardware may sell its products to other companies that use them to build their own products, rather than directly to end users. Similarly, a software company may provide its software to other businesses for use in their operations, rather than to individual consumers.

B2B transactions often involve complex negotiations and contracts, as well as specialized logistics and distribution systems to handle the bulk quantities of goods being exchanged. B2B marketing and sales strategies also tend to be different from those used in B2C (business-to-consumer) marketing, as they often involve building relationships with key decision-makers within other businesses, rather than appealing to a wide range of individual consumers.