What is B2B trading

B2B

The abbreviation B2B (or B-to-B or BtB) stands for business-to-business and therefore describes business relationships between two or more companies. This type of business relationship is in contrast to business relationships between companies and other groups such as consumers (B2C or business-to-consumer). A practical example of a B2B business would be if a company that manufactures leather goods does not sell its products to private individuals in a store or an online marketplace, but only sells them to other companies, e.g. wholesalers. The transaction then takes place between two companies, ie from "business to business".

The term B2B is primarily to be seen against the background of marketing. Marketing, which relates to a business relationship with another company, used to be primarily referred to as industrial goods marketing or capital goods marketing. In the meantime, however, the term B2B marketing has established itself. In this way, the concept is mainly differentiated from traditional consumer goods marketing (B2C marketing).

Differences to B2C

The type of business, so whether B2B or B2C, has a particular impact on a company's marketing. Private individuals usually have to be addressed in a different way than companies. But now marketing in the B2B area no longer shows as many differences to B2C marketing as it used to. Because marketing to other companies now goes far beyond the mere provision of information about products and services. In the field of B2B marketing, too, more and more targeted marketing measures, brand building and an emotional approach to target groups are used.

Digitization in B2B

In the course of advancing digitization, electronic communication between companies has progressed more and more in recent years. It is now about much more than just communicating via email or Skype. Companies are striving for ever closer networking with one another, including a wide variety of business processes. For example, orders in e-commerce from the supplier are automatically triggered after an inventory comparison via an interface, without an employee being involved in this ordering process.

Example B2B on Amazon

Even if the Amazon Marketplace is primarily aimed at end consumers and thus has a B2C orientation, a B2B approach also works in the background here. If, for example, a vendor sells products to Amazon as a manufacturer or brand, which in turn are then sold by Amazon directly to buyers, then the vendor and the marketplace have a "business-2-business" relationship.