In B2B, the seller sells goods or services to another business. The customer is not an ordinary individual but a factory, a shop, a company or an organization buying for its own operations.
Examples#
- A producer selling raw materials to a factory
- A clothing wholesaler supplying shop owners
- A software company selling accounting or sales systems to firms by subscription
- Bulk-order websites for restaurants and stores
Characteristics of the B2B market#
- Fewer buyers but larger orders: each customer has high financial value.
- Longer decision-making: several people are usually involved, and quotes, contracts and approvals are needed.
- Variable pricing: volume discounts, annual contracts and purchasing on credit are common.
- Long-term relationships: trust and support matter more than advertising.
In online sales#
A B2B store usually has company accounts, customer-specific price lists, official invoices and easy repeat ordering. Educational content and technical comparisons work better than emotional advertising.
Difference from B2C#
In B2C the seller sells to the end consumer, purchases are quicker and more emotional, and each order is smaller.