B2B

Business-to-business (B2B) refers to transactions, interactions, and relationships between two or more organizations rather than between a business and individual consumers. B2B activities encompass parts and components supply, wholesale trade, enterprise software and services, professional services, logistics, and consulting. Examples include a manufacturer selling parts to an automaker, a software vendor delivering an enterprise platform to a corporation, or a logistics provider managing freight for a retailer.

B2B markets typically involve longer sales cycles, multiple decision makers, and negotiated pricing and contracts. Purchases tend to be higher in value and more complex, with requirements such as service level agreements, warranties, and customization. Procurement processes often include requests for proposals (RFPs) or requests for quotations (RFQs), supplier evaluation, and ongoing vendor management.

Marketing and sales strategies emphasize relationships and account-based approaches, partner channels, and integration with existing business systems. Revenue models include outright product sales, subscription or usage-based pricing (as in B2B software), and professional or managed services. Digital channels such as procurement portals, e-commerce marketplaces, and application programming interfaces (APIs) enable ordering, invoicing, and system integration with enterprise resource planning (ERP) and customer relationship management (CRM) platforms.

Key metrics focus on pipeline velocity, win rate, annual recurring revenue (ARR) or contract value, gross margin, and customer lifetime value. Global B2B activity must address cross-border trade, regulatory compliance, data security, and privacy concerns, as well as logistics and supply chain resilience. Trends include increased emphasis on digital procurement, standardization of interfaces, and diversification of supplier networks.