Business services are a large portion of the industry that assists companies and does not result in a tangible commodity. These include information technology, procurement and shipping. They are often used by companies to support other aspects of their company such as marketing, sales and customer service.
Unlike goods, services cannot be stockpiled or repurposed for future use. This is one of the main characteristics that differentiates them from products. Also, services must be delivered when they are requested or needed. Some examples of business services include accounting, warehousing, marketing and consulting.
Most business services are performed by private companies. However, some are provided by the government or other public entities. They may be used by other businesses or to serve the community. They typically provide expertise and resources that a business would have difficulty accomplishing alone.
A form of business service known as a business-to-business (B2B) transaction occurs between trade organizations. For example, a manufacturing company performs a B2B transaction with a wholesaler to purchase the parts and materials necessary to build a vehicle.
Some of the most important types of business services are those that help a company stay competitive, productive and innovative. For instance, a company might hire a professional to design a logo or to help them develop and implement an online strategy. Similarly, a company might employ an animal control or pest extermination specialist to handle any infestations and keep the workplace safe for its employees. Tech support specialists can help a company resolve any issues with its networks or computers and prevent downtime.
