Business-to-business

Successful B2B operations depend upon sales personnel understanding the purchasing behaviour and outlook of the types of business they wish to work with.

Alternatively, the website can be created for business purposes, where the seller advertises their products to promote and expand transactions.

[clarification needed] It consolidates similar transactions from various industries into one platform, offering trading opportunities for both buyers and suppliers.

Typically, it involves companies that do not own or sell the products but serve as a platform to connect sellers and buyers online.

A 2022 Amazon report highlighted a "rapid transformation of B2B e-procurement in recent years", with 91% of the B2B buyers surveyed in their study stating that they preferred online purchasing.

B2C transaction is clearer, it has spot sourcing contract management that offers a flat retail rate for each item sold.

Business-to-business generally requires an upfront investment whereas business-to-consumers do not need a business to spend money on infrastructure.

B2B, as there are normally bigger amounts involved over longer periods of time, usually have higher costs than B2C, which consists of quick, daily transactions.

Businesses typically want to buy on net terms, meaning that B2B merchants have to wait weeks, if not months to get paid for their goods or services.

For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windows, and rubber hoses for its vehicles.