B2B: Definition, challenges, and explanations

The term B2B stands for "Business to Business" and refers to all commercial transactions between two companies. Unlike the B2C (Business to Consumer) model, which directly involves end customers, B2B acts as an intermediary for offers intended for professional, industrial, or commercial use.

This model encompasses a wide range of activities and services, from the sale of raw materials and technological equipment to specialized services such as consulting and digital marketing.

Companies engaged in B2B often establish more complex and long-lasting relationships than in B2C, with longer sales cycles and purchasing decisions involving multiple stakeholders.

B2B enables companies to effectively meet their professional needs with products or services specifically designed for their activities. This model promotes specialization and optimization of industrial or commercial processes.

Using B2B also makes it possible to establish lasting partnerships, sources of growth and innovation between companies, by pooling skills and resources. These relationships can thus strengthen the value chain and improve the competitiveness of the players involved.

Finally, B2B often offers larger purchase volumes and long-term contracts, which provides attractive financial stability for suppliers.

In concrete terms, in a B2B model, a company offers its products or services to another company, which uses them for its own needs or to integrate them into a production chain.

The B2B purchasing process generally involves several steps: identifying the need, searching for suppliers, negotiating terms, ordering, delivery, and follow-up. Each step is often more formalized than in B2C.

Interactions between companies can take various forms, such as direct sales, dedicated online platforms (B2B marketplaces), or participation in trade shows to establish contacts.

Advantages:

• Larger purchase volumes, often accompanied by discounts or favorable terms.
• Long-term business relationships that promote loyalty and trust.
• Opportunity to establish strategic partnerships to innovate or pool resources.

Disadvantages:

• Longer sales cycles, which can delay return on investment.
• Complex decision-making process involving several parties.
• Less flexibility in negotiations due to volumes and commitments.

A classic example of B2B is the sale of raw materials to an industrial manufacturing company, such as the purchase of steel for automobile construction.

Professional software publishers that provide solutions to businesses for managing their resources or accounting also illustrate the B2B model.

Finally, digital marketing agencies that offer specialized services to other companies are also a typical example of B2B transactions, as they meet specific needs related to business growth and professional visibility.

• Forbes - B2B Marketing Strategies
• Shopify - B2B E-commerce Guide
• McKinsey - The new rules of B2B sales