What is B2B?
B2B is an acronym that is seen more often every day, in different fields but mainly in the business and labor field. It’s one of those acronyms, used alongside others like B2C, B2B2C, BTG, P2P. Surely you are wondering, but what is B2B, and what do the rest of the acronyms mean? Below we describe what B2B is, its different applications or types, and we will also describe the rest of the common acronyms in the business sector.
Definition: ¿What is B2B?
B2B is the abbreviation of the Anglo-Saxon expression Business to Business (B2B). This refers to any interaction that occurs solely between businesses, or business to business. To contextualize, let’s think of a travel services company, which is dedicated to organizing and offering travel services such as Travelperk. This company could be defined as B2B, because it offers business-to-business services. Or for example, a software company that facilitates the sending of invoices between companies, would also be categorized as B2B. Today we can see B2B transactions in numerous sectors such as manufacturing and manufacturing, consulting services, software, E-commerce, amongst others.
Other Abbreviations: (B2C, B2B2C, P2P…)
As we mentioned before, today it is very easy to get lost among so many acronyms and specialized words in each sector, especially in the technology sector. If you want to understand what all these words mean, keep reading below.
B2C or Business to Consumer, refers to business models that, being a company, aim to sell to end customers or end consumers. For example, a mobile application either to access online banking, or to play a video game from the mobile, would be considered B2C, because it is a transaction from the company that is aimed at offering a service or product to the final consumer, in this case any natural person. Another example would be the Amazon Marketplace for example, which sells products from companies to final consumers, although it may have a division on the page that also makes transactions between companies or B2B.
B2B2C or, Business to Business to Consumer, refers to business models in which firstly there is a business to business transaction, or between companies, and later there is a transaction aimed at the final consumer. An example of a business model or B2B2C company would be a company that, for example, has created a service or infrastructure, which is sold to the intermediary company but which, in turn, this intermediary company makes available to the final consumer. Let’s think of a company that creates bank wallets. This company creates the wallet infrastructure and sells it to an intermediary application. This intermediate company offers the wallet to the final consumer from its application so that they can make payments to their friends and family. Such a case would be a very clear example of a B2B2C business.
B2G, or Business to Government, refers to business models that sell products or services directly to governments. In today’s world, the number of businesses and transactions with government institutions is not that high. That is why this acronym is not as well known as the previous ones could be.
P2P or also known as Peer to Peer, is probably the best known acronym, or one of the best known in the business sector. This refers to transactions between individuals or final consumers. This type of business model became very popular thanks to applications such as Venmo in the United States, or Bizum in Spain, which allow you to send money in one click between friends and family. Another very common use case that made the term fashionable could be marketplaces for buying and selling used products, cars, etc. In these applications, end consumers transact with each other through an application or marketplace.
Snab B2B payments software
Snab is a cloud based software that automatizes the reception, registry, and payment of invoices between companies (B2B), and that allows to have a greater control in real time of all your business transactions thanks to the real time connectivity to bank accounts, giving you a full visibility of all your future payments and collections. Using Snab, you can Benefit from all the advantages of a B2B payments platform. Request your Demo here.