B2B sales what is it?

Sales between legal entities (between companies, firms and organizations) are called B2B.

B2B means "business to business", that is, the sale of "business to another business." They differ significantly from the sale of products to ordinary consumers, since the motives and goals for buying from legal entities are different than those of consumers in a shopping center, for example.

Any company that sells something on the market has not only its customers, but also several counterparties - intermediaries who supply materials that the company subsequently modifies or produces one of them for further resale. The supply of goods or materials from intermediaries for further resale is B2B sales. More information you can find at the https://jey.today. It is a typical B2B marketplace, where you can find all types of products.

The features of B2B include the following:

• the number of players in the market (buyers and sellers) is relatively small. There are much more of them on the consumer goods market, and therefore, competition in the B2B area is not so strong;
• when making purchases, companies are guided by rational motives, rather than emotional ones, as is often the case among the B2C market — that is, the company-consumer-individual market. It is unlikely that companies purchasing semi-finished products for their processing of subsequent sales will make impulse purchases. Such organizations usually study suppliers for a long time and choose those who are ready to provide not only a high-quality and affordable product, but also offer special conditions of cooperation - discounts for large orders, a more efficient delivery system and much more;
• Buying companies are well aware of the product they are purchasing, as they are constantly monitoring the market and its latest trends. In addition, engaged in the production of the final product from those materials that the supplier provides, the company knows all the details regarding the quality of the materials supplied to the production;
• B2B pricing is shaped in a special way - strategic and mutually beneficial partnerships are important here. Therefore, for different customers a different price of a product or material may be formed;
• batches that customers order differ in the volume and quantity of goods. It is always a bulk supply;
• demand for goods is not elastic and is always affected by external economic factors. The general economic situation in a country or regions is able to affect demand to a greater extent than the desire of the buyers themselves;
• the most effective way to promote products in the B2B sphere is direct sales - negotiations with company representatives, which, with a competent approach, often lead to the conclusion of mutually beneficial transactions;
• relations between partners in this field of sales is always based on trust and stability of supply. Unlike consumer goods, in the B2B market, not so much the value or brand of the company, but its reputation and established business relationships play a big role.

An excellent example of a business in the B2B sphere is the construction industry, factories and factories that produce products for end consumers, and the automotive industry.

The simplest example would be a furniture factory, which simultaneously operates in both the B2B market and B2C. The purchase of materials from which tables, chairs, sofas and other furniture are then made is B2B. And the wood processing plants in this case are B2B sellers. But when the furniture is already manufactured, and it is delivered to furniture stores for sale to individuals - this is the B2C market.