B2B (Business2Business or Business-to-Business):
B2B. A transaction that occurs between a company and another company, as opposed to a transaction involving a consumer. The term may also describe a company that provides goods or services for another company.
B2B is an acronym for "business to business". A B2B business is one that provides products or services to other businesses.
B2B is an abbreviation for business-to-business. B2B describes a commercial activity as being targeted toward business entities rather than consumers. B2B is usually contrasted with B2C, or business-to-consumer. For instance, in the franchising industry, most business concepts were once B2C establishments such as fast food, but the B2B entity is no longer ignored as a franchising concept, especially since there are now many investors who would rather not deal with the consumer. A B2B directory is a directory that provides a list of firms that provide services targeted strictly to other businesses. For instance, The Black Book is a B2B directory for the creative industry. Entries in this B2B directory include studios and sound stages, casting services and modeling agencies, stylists and props providers, and other services related to music, television, and film production. All these firms operate primarily or entirely B2B.
On the Internet, B2B (business-to-business), also known as e-biz, is the exchange of products, services, or information between businesses rather than between businesses and consumers. Although early interest centered on the growth of retailing on the Internet (sometimes called e-tailing), forecasts are that B2B revenue will far exceed business-to-consumers (B2C) revenue in the near future. According to studies published in early 2000, the money volume of B2B exceeds that of e-tailing by 10 to 1. Over the next five years, B2B is expected to have a compound annual growth of 41%. The Gartner Group estimates B2B revenue worldwide to be $7.29 trillion dollars by 2004. In early 2000, the volume of investment in B2B by venture capitalists was reported to be accelerating sharply although profitable B2B sites were not yet easy to find.
B2B Web sites can be sorted into:
â€¢Company Web sites, since the target audience for many company Web sites is other companies and their employees. Company sites can be thought of as round-the-clock mini-trade exhibits. Sometimes a company
â€¢Web site serves as the entrance to an exclusive extranet available only to customers or registered site users. Some company Web sites sell directly from the site, effectively e-tailing to other businesses.
â€¢Product supply and procurement exchanges, where a company purchasing agent can shop for supplies from vendors, request proposals, and, in some cases, bid to make a purchase at a desired price. Sometimes referred to as e-procurement sites, some serve a range of industries and others focus on a niche market.
â€¢Specialized or vertical industry portals which provide a "subWeb" of information, product listings, discussion groups, and other features. These vertical portal sites have a broader purpose than the procurement sites (although they may also support buying and selling).
â€¢Brokering sites that act as an intermediary between someone wanting a product or service and potential providers. Equipment leasing is an example.
â€¢Information sites (sometimes known as infomediary), which provide information about a particular industry for its companies and their employees. These include specialized search sites and trade and industry standards organization sites.
Many B2B sites may seem to fall into more than one of these groups. Models for B2B sites are still evolving.
Another type of B2B enterprise is software for building B2B Web sites, including site building tools and templates, database, and methodologies as well as transaction software.
B2B is e-commerce between businesses. An earlier and much more limited kind of online B2B prior to the Internet was Electronic Data Interchange (EDI), which is still widely used.
Examples of a B2B business include:
â€¢ A medical billing service or software company
â€¢ A virtual assistant business
â€¢ A direct mail marketing service
Business that sells products or provides services to end-user consumers.
While business-to-consumer activity exists both online and offline, the acronym B2C has primarily been used to describe the online variety.
B2C businesses played a large role in the rapid development of the commercial Internet in the 1990s. Large sums of venture capital flowed to consumers in the form of free online services and discounted shopping, spurring adoption of the new medium.
When the capital markets turned sour, however, the B2C companies were among the first to fall, and they fell fast. Many companies tried to follow the herd of investors by undergoing a B2C to B2B makeover.
For awhile after the .com bubble, B2C was used infrequently except when it was followed by "...is dead." However, some analysts still predicted that consumer businesses would thrive online, just not in they way everyone initially predicted.
How is B2B Different than B2C?
A B2C business is one that offers products or services direct to the consumer. Examples are:
â€¢ A gourmet pet foods business
â€¢ A home staging business
â€¢ A pet sitting business
Some businesses may operate as both B2B and B2C businesses. For example, a day care business may be open to the public but may also provide special arrangements to care for the children of employees of a local business as a group.
Also Known As: B to B, business-to-business
Some entrepreneurs prefer running B2B businesses to avoid having to deal with the end consumer or to better narrow their target market.