what is b2b

Understanding the Difference Between B2B vs B2C

By Stewart Swayze

B2B meaning



B2B is shorthand for "business to business." Business-to-business (B2B) is business conducted between one company and another.

It refers to sales you make to other businesses rather than to individual consumers.


b2b vs b2c

B2B vs B2C

B2C is short for business to consumer. So, instead of conducting business with another company, with B2C, you're conducting business with a consumer.


B2B marketing means your marketing activities focus on another business. B2C marketing is targeting the final consumer.


Same with B2B vs B2C sales. With B2B Sales, your sales team focuses on business buyers. B2C sales teams are selling to consumers. 


Some companies are B2B and B2C. Think about Amazon. Amazon is selling directly to businesses and consumers. 


B2B examples

Here are a few other examples of B2B businesses and transactions. 

B2B transactions happen directly or along the supply chain, where one company will purchase raw materials from to support the manufacturing process. 

Aircraft Engine Manufacturers

  • Aircraft engine manufacturers, such as GE Aviation, market and sell their engines to aircraft manufacturers, like Boeing.

B2B Services

  • Attorneys represent business clients, accounting firms that help companies do their taxes, and B2B marketing consultants, like me, who help companies increase revenue, generate leads, and build their brand.

Toy Manufacturing

  • Toy manufacturers are B2C companies. However, to build and sell those toys, they conduct business to business activities. For example, a toy manufacturer buys raw materials from suppliers.

Another example would be wholesalers that sell their products to retailers who then turn around and sell them to consumers. 

Supermarkets

  • Supermarkets are a perfect example of this activity. They buy food from wholesalers then sell it at a slightly higher price to individual consumers.




Summary - What is B2B?



  • If you're transacting with another business, that's B2B

  • If you're transacting with a consumer, that's B2C

  • If you're marketing is targeting another business, that's B2B

  • If you're marketing is targeting a consumer, that's B2C



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