What is Business to Business (B2B)?
  • Technology
  • 07-Oct-2020
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What is Business to Business (B2B)?

Business to Business (B2B) simply means one business to another business, which is a business model that focuses on selling products and services to other companies. Think of it as a supportive company that that through their products and services helps companies succeed or boost their internal efforts.

How Business to Business Selling is Different?


Selling to a business is different from selling to an individual consumer. Selling sometimes requires participating in a bidding process by responding to a purchaser's request for proposals. On the business-to-consumer side, this compares to asking various auto dealers to provide their best offer on a specific make and model.

The decision making process on a purchase can take days, weeks, or months, depending on how the purchasing company works and the size and nature of the order. Purchasing decisions are often made by committees, so each member needs to be educated and "sold".

It's about the Customer, Not the Transaction Size. While business-to-business transactions often involve high prices and volume, they can also happen on a much smaller scale when a small business sells products or services to another small business. The hallmark of business to business commerce then, is the participants - two businesses rather than a business and a consumer.

While companies can sell through physical storefronts or take transactions by phone, B2B commerce often takes place online, where companies advertise their products and services, allow for demonstrations and make it easy to place bulk orders. Sellers also benefit from efficient order processing thanks to this digital transaction model.

By moving from Capital Expenditure (Capex) to Operational Expenditure (Opex). B2B Managed Services ensures that the cost of your B2B operations become a predictable expense, through monthly subscription fees that are usually clearly linked to the volume of transactions being processed or network capacity used.


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