Which statement best defines B2B e-commerce?

• A. Transactions between businesses
• B. Transactions between consumers
• C. Transactions between governments and businesses
• D. Transactions within a single business

Answer: (A)

B2B e-commerce is about transactions between businesses, where one company sells goods or services to another company. This setup typically involves larger orders, negotiated terms, and often integration with the buyer’s procurement or ERP systems. For example, a manufacturer buying raw materials from a supplier or a wholesaler supplying products to retailers illustrate B2B relationships. This differs from business-to-consumer transactions, which are sales to individual shoppers; government-to-business scenarios, which involve government entities purchasing from companies; or internal transactions within a single organization. So the statement describing transactions between businesses best defines B2B e-commerce.