b2b business meaning,7 Reasons Why B2B Business

b2b business meaning

7 Reasons Why B2B Business is the Future of Export Management

B2B business, or business-to-business, is a type of transaction where one company sells goods or services to another company, rather than to individual consumers. B2B business is a growing trend in the global market, especially in the field of export management. Export management is the process of planning, coordinating, and executing the export of goods or services from one country to another. In this article, we will explore the meaning and benefits of B2B business for export management, and how you can leverage it to grow your international presence and profits.

B2B Business Meaning for Export Management

B2B business for export management means that you are selling your products or services to other businesses that are involved in the export process, such as distributors, wholesalers, retailers, agents, brokers, or consultants. These businesses can help you reach new markets, reduce costs, increase efficiency, and overcome legal or cultural barriers. B2B business for export management can take various forms, such as:

– Contract manufacturing: You outsource the production of your goods to another company in a foreign country, and then sell them under your own brand name.
– Licensing: You grant another company the right to use your intellectual property, such as patents, trademarks, or designs, in exchange for a fee or royalty.
– Franchising: You allow another company to use your business model, name, and logo in a foreign market, and provide them with training and support.
– Joint venture: You form a partnership with another company in a foreign country, and share the ownership, control, and profits of a new business entity.
– Strategic alliance: You cooperate with another company in a foreign market, and share resources, information, or technology to achieve a common goal.


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Benefits of B2B Business for Export Management

B2B business for export management can offer you many advantages over selling directly to individual consumers in foreign markets. Some of the benefits are:

– Access to new markets: B2B business can help you reach new customers and regions that you may not be able to access on your own. For example, you can sell your products to a distributor who has an established network of retailers in a foreign country, or you can license your technology to a local company who has the expertise and connections to operate in that market.
– Reduced costs: B2B business can help you save money on various aspects of the export process, such as transportation, warehousing, marketing, customer service, or taxes. For example, you can contract manufacture your products in a low-cost country, or you can franchise your business to a local partner who will bear the expenses of setting up and running the operations.
– Increased efficiency: B2B business can help you optimize your production and distribution processes, and improve your quality and performance standards. For example, you can outsource some of your non-core activities to a specialized company who can do them faster and better than you, or you can form a strategic alliance with a complementary company who can provide you with valuable resources or capabilities.
– Overcome barriers: B2B business can help you overcome some of the challenges and risks of exporting to foreign markets, such as legal regulations, cultural differences, language barriers, or political instability. For example, you can work with a local agent who knows the laws and customs of the target market, or you can join a joint venture with a reputable company who has a strong reputation and influence in that market.

How to Start B2B Business for Export Management

If you are interested in starting B2B business for export management, here are some steps you can follow:

– Identify your target market: Research the potential demand, competition, opportunities, and threats of the foreign market you want to enter. You can use online tools such as Google Trends or Statista to find relevant data and trends.
– Find your B2B partner: Search for potential B2B partners who can help you export your products or services to the target market. You can use online platforms such as Alibaba or Global Sources to find suppliers or buyers from different countries. You can also attend trade shows or exhibitions where you can meet and network with potential partners face-to-face.
– Negotiate your terms: Once you have found a suitable B2B partner, negotiate the terms and conditions of your agreement. You should consider factors such as price, quality, quantity, delivery time, payment method, warranty, liability,
and dispute resolution. You should also consult a lawyer or an expert before signing any contract or agreement.
– Execute your plan: After you have finalized your deal with your B2B partner,
execute your plan according to your agreement. You should monitor and evaluate
your performance regularly and communicate with your partner frequently. You should also be flexible and adaptable to any changes or challenges that may arise.


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B2B Business: An Overview

B2B, or business-to-business, is a term that describes transactions or relationships between two businesses, such as a manufacturer and a wholesaler, or a wholesaler and a retailer. B2B transactions are different from business-to-consumer (B2C) transactions, which involve a business and an individual consumer. B2B transactions are common in the supply chain, where one company purchases raw materials or components from another company to use in its production process. B2B transactions can also involve services, such as accounting, marketing, or consulting.

Global Demand for B2B Business

According to a report by Grand View Research, the global B2B e-commerce market size was valued at $12.2 trillion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 17.5% from 2021 to 2028. The report attributes this growth to the increasing adoption of digital platforms and technologies by businesses to streamline their operations, reduce costs, and enhance customer satisfaction. The report also identifies some of the key drivers of the B2B e-commerce market, such as the rising demand for cloud-based solutions, the growing use of mobile devices and social media, the emergence of new business models and payment methods, and the favorable government policies and regulations.

Some of the major players in the global B2B e-commerce market include Alibaba Group, Amazon.com, Walmart Inc., Shopify Inc., JD.com Inc., Rakuten Inc., Mercateo AG, IndiaMART InterMESH Ltd., and Coupang Corp. These companies offer various products and services to other businesses across different industries, such as electronics, automotive, healthcare, consumer goods, industrial equipment, and software.








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