B2B

B2B (Business-to-business - business for business) is a segment of the commercial market, in which transactions are carried out between business objects.

Simply put, a B2B company sells its products and services to other business representatives, not end consumers. It is believed that a B2B transaction is concluded exclusively between legal entities (although one of them may be an individual entrepreneur), and a B2C transaction is concluded between a legal entity and an individual.

B2B activity implies the supply of any business (private commercial structures - companies or individual entrepreneurs) with the goods necessary to ensure their economic activity, and with accompanying services.

An important feature of the B2B sphere is the purpose of purchasing goods and services, in which they are purchased for a "business" - a business or any professional activity (including resale). When choosing a B2B supplier, entrepreneurs are guided by getting the most effective result for the lowest possible price.

This is the main difference between B2B and B2C sales (business to consumer). In the second case, the purchase of goods or services can occur impulsively, and in the first case, only rationally.

An ordinary end customer (B2C) often makes an unnecessary purchase at an inflated price just because he subjectively liked it at a certain point in time (according to his mood). An entrepreneur (B2B) knows exactly what he needs and first compares all the current offers on the market, and then chooses the option with the best price-performance ratio.

Back Home eCommerce Encyclopedia

Set up integration without programmers – ApiX-Drive

Articles about marketing, automation and integrations on our Blog