What are B2B rebates?
B2B rebates refers to a practice in indirect sales where businesses rebate or give back a portion of the purchase price to their resellers, distributors, or other partners. It’s a type of partner incentive or reward that businesses offer to drive more sales, strengthen relationships, and foster loyalty to their brand.
Think of it this way: you’re a manufacturing company that offers a rebate to your distributors if they hit a certain sales target within the quarter. Each distributor is incentivized to sell more of your products because they know they’ll get a larger portion of their purchase price back.
Rebates serve multiple purposes in B2B channel partnerships, including to:
- Encourage volume purchases: The more a partner buys, the more they can earn in rebates. This can encourage larger, more frequent orders.
- Promote specific products: If you have a product that you want to push, offering a rebate can incentivize partners to focus on selling it.
- Build partner loyalty: Valuable rebates can help keep your partners engaged and loyal, reducing the likelihood they’ll prioritize competing brands.
No matter how you structure your rebate program, it must be well managed. Clearly communicate your terms and send timely payments to maintain your partners’ trust.
When you’re ready to grow your B2B sales, rebates can be a powerful tool to boost sales, improve your partnerships, and drive business growth.