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What does Business-to-Business Means?

Business-to-business (B2B) sales are transactions between two businesses rather than between a company and an individual consumer for the consumer’s personal use. B2B sales are characterized by more significant transaction amounts, more educated buyers, a multi stakeholder approval process and thus, a longer sales cycle.

What Are Four Types of Business-to-Business?

The different types of business customers in B2B markets, we’ve put them into four categories they are producers, resellers, governments, and institutions.


Producers are companies that purchase goods and services that they transform into other products and services. They include both manufacturers and service providers.


Resellers sell goods and services produced by other firms without materially changing them. They include wholesalers, brokers, and retailers.


Governments are one of the world’s biggest purchasers of goods and services. It purchases everything you can imagine, from paper and fax machines to tanks and weapons, buildings, toilets for NASA, highway construction services, and medical and security services.


Institutional markets include non-profit organizations such as the Canadian Red Cross, churches, hospitals, charitable organizations, private colleges, civic clubs, etc. Like the government and for-profit organizations, they buy many products and services.

What Are The Main Characteristics Of B2b?

The characteristics  of Business-to-business market (B2B) are:

  • Few purchasers concerning a total number of customers.
  • Large-scale orders.
  • A relationship between buyer and retailer can be recognized.
  • Possible customers are easy to single out/segment.
  • More persons are elaborate in a purchase.

What Are the Advantages Of Business-to-Business?

Business-to-business (B2B) e-commerce is having a resurgence. Research suggests that by 2023, B2B e-commerce sales will be valued at $1.8 trillion, with 17% of sales expected to happen online. The advantages of the B2B e-commerce business model—as a native DTC [Direct-to-Customer] brand developing into B2B for the first time or as a traditional retailer twisting from in-person B2B sales to online. The eight advantages of b2b are;

  1. Increase brand recognition
  2. Minimal B2B marketing costs
  3. Lower customer acquisition costs
  4. Higher order value and volume
  5. Default loyalty creates predictable revenue
  6. Automated sales and business processes
  7. Offload international distribution
  8. Reduced operational costs.

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