Tuesday 13 September 2011

Business to Business - New Concept of Trade


Business to Business is also known as B2B. It is a term that describes the transaction that only takes place between business and traders and does not include consumers. An example of this would be a transaction between a wholesaler and a manufacturer or retailer and wholesaler. There are two other contrasting terms, B2G (Business to Government) and B2C (Business to Consumer).

By way of comparison between the B2B and B2C sales volume actually is much more in Business to Business, the main reason for this is commercial transactions in a typical supply chain tend to involve raw materials or components and sub a consumer transaction tends to be an item (final product). An example of this might be a car manufacturer ... commercial transactions involving the sale of all parties, while the consumer transaction would be the final product (a single operation, the vehicle itself).

The term was at first used to explain B2B electronic exchanges between enterprises or businesses in order to differentiate it from the consumer communication. That time is finished now and today online or B2B marketing is now used worldwide to describe services and products used by businesses.

However, while most marketing and sales people work in business to business a lot for publications and professional institutions focus much more on the business side of consumers. If you are looking for these services there are a lot of companies out there that offer, be sure to look around and find the company that best suits your needs.