What is B2B or Business-to-Business?

[account_disabled]

For a company to achieve success, it is essential to have its business model well defined. In fact, according to a CB Insights report , the lack of a business model is the reason why a startup fails 17% of the time . That is, being clear about what we sell, who we are targeting or what the needs of our consumers are is vital to achieving the objectives of any company. In this sense, B2B or Business to Business is one of the most popular business models, which consists of the sale of products and services directly between companies. Without going any further, as pointed out in the study Innovation in B2B digital commerce: Trends and success strategies by the strategic consulting firm IDC Research Spain and Liferay, in Spain alone, 43% of corporations spend more than €10,000 per month in B2B e-commerce applications . Do you want to know exactly what B2B is and what its advantages and disadvantages are compared to other business models? We tell you everything below . CTA Post What is B2B? B2B is an abbreviation of the business model known as Business to Business , whose translation into Spanish could be “from business to business.



This way, as you can already deduce from the name, the main objective of B2B is to create commercial relationships between companies. That is, unlike the B2C model that is aimed at a general public, in Business to Business a company offers its services or products to other organizations so that the latter can carry out their commercial activity and satisfy their needs. However, there are some wholesale businesses, such as the Makro wholesale hypermarket, that Europe Mobile Number List can trade with both companies and individuals, so it would be a mixed business model, which is known as B2B2C. What are the advantages of B2B? B2B advantages If you want to know the advantages of B2C, click on the image Disadvantages of the B2B business model Although the B2B business model offers countless advantages, the truth is that it also has some drawbacks . Below, we explain some of them: Longer buying and selling times Unlike B2C, B2B purchase and sale times can be extended over time , although it all depends on the business. In general, impulse buying is not very common in B2B, which makes it difficult to sell and find customers. Therefore, having a good sales strategy is essential.







Great competition Although there are still many niches to be exploited and with hardly any competition, in most of them it is fierce. In some sectors, competing is very difficult due to the difference in prices, experience or reputation . For this reason, choosing the niche and checking the competition is essential, since, in many cases, this obstacle is practically insurmountable. Dependence Having a stable client portfolio is, without a doubt, one of the great advantages of B2B. However, it also hides one of the disadvantages inside: dependence on some of your clients. For example, imagine that you provide services to several companies, but one of them is the one that contributes 70% of your billing. If it, for any reason, decides to dispense with your services, you can quickly find yourself in difficulties. Risks B2B business models come with a set of risks that can often be difficult to navigate : from managing supplier and customer relationships to understanding the complexities of the supply chain. Examples of B2B business models Today, there are several examples of B2 business models . Some of them are the following: Amazon AWS Although Amazon is the largest B2C market in the world, this Jeff Bezos company also has an aspect aimed at B2B.