Business to business, also called B to B or B2B, is a type of transaction that exists between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between companies.
A typical supply chain involves multiple business to business transactions, as companies purchase components and products such as other raw materials for use in the manufacturing processes. Finished products can then be sold to individuals via business to consumer transactions.
The internet provides a robust environment in which businesses can find out about products and services and lay the groundwork for future business to business transactions. Company websites allow interested parties to learn about a business's products and services and initiate contact. Online product and supply exchange websites allow businesses to search for products and services and initiate procurement through e-procurement interfaces. Specialized online directories providing information about particular industries, companies and the products and services they provide also facilitate business to business transactions.
For example, companies specializing in property management, housekeeping and industrial clean-up, often sell these services exclusively to other businesses, rather than individual consumers.