B2B means "Business-to-Business." It refers to a type of commerce and interaction where goods, services, or information are exchanged between two or more businesses rather than directly between a business and individual consumers.
In B2B transactions, the focus is on catering to the needs of other businesses, such as manufacturers, wholesalers, distributors, software products, and service providers, rather than end consumers. B2B relationships often involve larger quantities, specialized products, and negotiated agreements tailored to the specific requirements of the businesses involved.
Specifically, it refers to businesses that sell their product or service to other businesses. This does not necessarily mean that they do not sell to singular customers as well, but the true money-maker tend to be the B2B sales
For an example of how this works, let's think of tour companies and service providers.
They can sell a package to individual travelers, but they can also have agreements with companies to organize their company retreats for them. An individual traveler is an immediate transaction, therefore, a Business-To-Customers or B2C transaction. They are solely worried about purchasing at that moment and may or may not use the tour company again.
On the other hand, working with a specific business over a number of years to always provide for their company retreat with multiple folks traveling makes this transaction and sale B2B.
More concrete examples of B2B are the purchase of raw materials for production or of components for product assembly in the world of manufacturing, or for services such as advertising or consulting.
, we're an example of a B2B model as we offer high-quality outsourced SDRs
to help SaaS companies with their own B2B sales.