Definition of Business To Business

Business to business or B2B includes the type of business and transactional activities that happens between two business entities. In other words, for a company that produces chemicals that are an integral part of a textile mill, a B2B transaction would occur when that chemical is sold to the textile company. Since the chemical is not used or consumed by the end consumer/customer, but it is used by another business that activity among chemical manufacturer and the textile mill is called B2B.

Business to business activities can occur between a producer to a wholesaler or even from a wholesaler to a retailer.


Example of Business to Business (B2B):

Samsung serves the consumer market as well as it’s a vendor of very important equipment to other businesses such as Apple.

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