What is BUSINESS-TO-BUSINESS? What does BUSINESS-TO-BUSINESS mean? BUSINESS-TO-BUSINESS meaning - BUSINESS-TO-BUSINESS definition - BUSINESS-TO-BUSINESS explanation.
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
Business-to-business (B2B) refers to a situation where one business makes a commercial transaction with another. This typically occurs when:
1. A business is sourcing materials for their production process (e.g. a food manufacturer purchasing salt).
2. A business needs the services of another for operational reasons (e.g. a food manufacturer employing an accountancy firm to audit their finances).
3. A business re-sells goods and services produced by others (e.g. a retailer buying the end product from the food manufacturer).
B2B is often contrasted against business-to-consumer (B2C). In B2B commerce it is often the case that the parties to the relationship have comparable negotiating power, and even when they don't, e...