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Business to Business (B2B)

The term "Business to Business" was initially used to describe electronic communications between businesses, to distinguish these from communications between businesses and customers (B2C). Nowadays it is used describe all transfers of products and services between businesses. B2B is also used to describe activities, such as B2B marketing, or B2B sales, that take place between businesses.

Far more B2B transactions take place than B2C transactions, largely because a number of B2B transactions are required to produce an item which is finally sold in a single B2C transaction. For example, a soft furnishings manufacturer may have to make several B2B transactions to buy wood, fixings, covering and stuffing materials and springs in order to produce a three-piece suite that is sold as a single B2C transaction.

Next: Business to Customer (B2C)