What are B2B rebates? | Enable
Summary
More than 70% of global trade goes through B2B channels before reaching the end consumer, and much of this activity involves some type of rebate program. B2B rebates are typically financial incentives given by a manufacturer or supplier in order to motivate their trading partners to perform a certain action (such as increasing volume or spend or purchasing add-on items) to drive sales and profitability. B2B rebate programs vary dramatically depending on the nature of relationships between suppliers and distributors, market conditions and many other factors. For example, electrical distributors typically report around 40-60 percent of their operating profit comes by way of rebates. Rebates can function as a tool to align pricing and performance, ensuring that vendor forecasts and negotiations are as accurate as possible.
