What Is the Definition of Corporate Sales?
Corporate sales are the sales that a company makes to another company through its everyday transactions. Corporate sales are also called B2B sales, or business-to-business, sales. On the other hand, if sales are made directly to the end consumer, these are called business-to-consumer, or B2C, sales.
As many companies do not own the entire production process that goes into manufacturing a consumer good, B2B sales are used. For example, a tire manufacturer may sell their end-product tires to an automotive factory that either refinishes or builds new cars. In this case, the tire company acts as an intermediary has has corporate sales as a part of their accounting books.
Wholesale sellers are another example of a type of corporate that makes its profits from corporate sales. In the agricultural industry, wholesale seller sell their produce to grocery stores and supermarkets, who then supply the customers in their area through their individual distribution centers.
Corporate sale do not only include goods, but they can also include services. For example, a chemical company may subcontract a part of their manufacturing process to another chemical company that has the means to more efficiently produce an important chemical raw material for their end product. Audit and accounting firms often provide financial services to large corporations as well, earning corporate sales in the process.