What is a business-to-business (B2B) sale?
- Business to business – “B2B” – refers to trade between two businesses rather than trade between a business and an individual consumer. This form deals with transactions at the wholesale level that is usually between one business and another. While transactions at the retail level are usually business-to-consumer (B2C)
- In essence, regardless of any business when doing business, the final concern is still on the profits they earn. Some studies have shown that the profit earned from business-to-business (B2B) sales is much larger than from business-to-consumer sales.
- Example: A bicycle maker will buy a large quantity of truck tires or a coffee maker will buy a large industrial grinder. Compare that to something bought by a cycling enthusiast or a coffee enthusiast.
II. 4 differences in business-to-business (B2B) sales
Business-to-business (B2B) selling is completely different from a business selling its products to retail consumers. The main differences between the sales and marketing stages of the sales form between a business and a business include:
- Sales of this type sometimes require participation in the bidding process by responding to a request for request from the buyer. While business sales to consumers are completely different, this is compared to asking different auto dealers to offer their best deal on a vehicle design and model. can.
- The purchasing decision process can take days, weeks or months, as your partner is a different business, depending on how the buying company works and the size and nature of the purchasing company. the order.
- Purchasing decisions are often made by the heads of the business, so make sure the sales staff of your business need to be trained and professionally “sell”.
- The profitability of goods or services of this type being sold is much higher than consumer or retail, so most buyers (other businesses) need to take steps to minimize risk. . That sometimes involves requesting a prototype or customizing the product.
III. Business-to-business (B2B) sales do not exclude business-to-consumer
- A company that sells to a business can also sell directly to consumers.
Example: A nut producer that sells large quantities of its beads to jewelry manufacturers might also pack them in smaller quantities than they sell to handlers at craft shops.
- A phone maker can sell bulk to companies either one by one to consumers shopping online or at an office service store. A company that provides health consulting and wellness services to corporations can also advise individuals one by one or during group presentations.
- Remember, business-to-business (B2B) sales should focus primarily on your customer rather than on your size.
Through the sharing in the article, you must have the answer to the question of what is the B2B model and updated 4 points of difference in sales between Enterprise and Business (B2B), right? Which?
Hope you will be satisfied with the answer to the question of what B2B is and hope that the sharing of CRMVIET, it will help you in your business as well as marketing e-business products for your business. Good luck!