Business-to-business (B2B) describes commerce transactions between
businesses, such as between a manufacturer and a wholesaler , or
between a wholesaler and a retailer.
Contrasting terms are
business-to-consumer (B2C)
business-to-government (B2G).
The volume of B2B transactions is much higher than the volume of B2C transactions.
The primary reason for this is that in a typical supply chain there will be many B2B
transactions involving subcomponent or raw materials, and only one B2C transaction,
specifically sale of the finished product to the end customer. For example, an automobile
manufacturer makes several B2B transactions such as buying tires, glass for windscreens,
and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the
consumer, is a single (B2C) transaction.
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