Business-to-business

Business-to-business (B2B or, in some countries, BtoB) refers to trade and commercial activity where a business sees other businesses as its customer base. This typically occurs when:

• A business sources materials for its production process for output (e.g., a food manufacturer purchasing salt), i.e. providing raw material to the other company that will produce output.
• A business needs the services of another for operational reasons (e.g., a food manufacturer employing an accountancy firm to audit their finances).
• A business re-sells goods and services produced by others (e.g., a retailer buying the end product from the food manufacturer).

Business-to-business activity is thought to allow business segmentation.^[1]

B2B is often contrasted with business-to-consumer (B2C) trade.