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Glossary » Business-to-Business (B2B)

Business-to-Business (B2B)

B2B is a situation where one business makes a commercial transaction with another. This typically occurs when:

  • A business sources raw materials for their production process for output (e.g., a food manufacturer purchasing salt) – which provides the opportunity for others to produce something from it.
  • A business takes advantage of their competition for operational purposes (e.g., a food manufacturer employing an accountancy firm to audit their finances).
  • Businesses are constantly selling other businesses’ products (e.g., clothing stores selling shoes manufactured by Nike).