The Term B2B
In the business world, the term “B2B” stands for “business-to-business.” This describes a type of business transaction that occurs between two companies, rather than between a company and an individual consumer. B2B transactions are typically much larger in scale than B2C (business-to-consumer) transactions. For example, a company that manufactures car parts might sell its products to another company that assembles and sells cars. In contrast, a company that sells cars would be considered a B2C business.
While B2B businesses make up the vast majority of the economy, most people are more familiar with B2C businesses. This is because we as consumers are more likely to have direct dealings with B2C businesses. For example, when we go to the grocery store or buy items online, we are interacting with B2C businesses. In contrast, we usually don’t have any direct interaction with the companies that supply our favorite businesses with the products they sell.
Despite the fact that B2B transactions make up such a large part of the economy, there is relatively little public awareness of this type of business. This is because B2B businesses tend to operate behind the scenes.