B2B

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How does B2B work?

 How does B2B work? In B2B, one business sells a set of products or services
to another business. Typically, there is a group or department that uses the
vendor's products and services. Occasionally, a single user on the buyer side
makes a transaction in support of the company's business goals.
Types of B2B companies

 Types of B2B companies

 There are several types of B2B companies, including the following:
 Producers design, create and manufacture their own products. Producers may
sell their products directly to businesses or indirectly through retailers or 
resellers.
 Retailers and resellers sell products and services made by other companies
directly to businesses. Retailers and resellers may sell online, from physical
stores or both, including B2B e-commerce vendors.
 Agencies and consultants provide advice, oversight and subcontracted work to
businesses. For example, an advertising agency manages and executes a
multimillion dollar advertising budget for a consumer brand. A website agency
designs and builds a website and mobile app for the same brand.
B2B industries

 B2B companies operate in many industries, such as:

 Financial services
 Technology
 Manufacturing
 Construction
 Retail
 Telecommunications
 Insurance
 Healthcare
 Education
 Engineering
 Marketing and sales
 Real estate
 Food and beverage
Benefit of B2B?

 The following are benefits of B2B:

 Large average deal size. A B2B company can grow sales with a smaller number of high-value deals compared to
a B2C company, which may require thousands or even millions of individual sales. Since B2B companies sell and
buy in bulk, the average B2B transaction is about $491, as opposed to $147 for a B2C sale.
 Higher switching costs. B2B customer loyalty is likely if they are satisfied with the product and service. In
contrast, B2C customers can be finicky and not loyal, resulting in large churn rates.
 Large market potential. B2B companies can target enterprises across many industries and geographies, resulting
in a big playing field. Or they can specialize in one industry, such as technology, and become leaders in that
field.
 B2B organizations advertise their products and services and conduct business online, making it easy for clients to
place bulk orders via an efficient digital transaction model.
 Faster delivery. Because B2B e-commerce tools make the sales process efficient for sellers, they accelerate the
process for buyers. Integrated systems enable the transacting companies to sync data across channels, automate
 fulfilment and inventory updates, and manage complicated orders.
 Built-in order management Cloud-based e-commerce platforms easily integrate with back-end systems or order
management systems. This enables B2B sellers to synchronize order inventory and customer data across every
channel.
What are Example of B2B companies

 Amazon
 Amazon, one of the best known B2C companies, also has a B2B business called Amazon Web Services
(AWS). AWS provides compute power, database storage, content delivery and related features to
businesses. It is one of the leading cloud providers with customers such as GE, Hess, Expedia, Philips
and BP. AWS Cloud spans 80 availability zones within 25 geographic regions, globally.
 Caterpillar
 Caterpillar manufactures construction and mining equipment, diesel and natural gas engines,
industrial turbines and diesel-electric locomotives and sells these products to other businesses. The
company also provides financial services to businesses through its Caterpillar Financial Services
business unit.
 Alibaba
 Alibaba is one of the world's largest online commerce companies. The Alibaba B2B marketplace is
where buyers and sellers worldwide connect and transact business.
 And more companies like Quill, Upwork, Flipkart, all Bank, Tata , Mahindra etc.
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