What is business-to-business B2B? Definition, types, and examples

B2B refers to business-to-business relationships where companies sell products or services to other companies rather than individual consumers. Yet 53% say brands still don’t understand which moments actually deserve personalization. “Our sales reps drive to different bike shops in America, and one feature we could not live without is the Shopify app,” says Lukas L. Dalsgaard, CeramicSpeed’s ecommerce specialist. The main challenges are clean pricing logic, shared inventory visibility, and messaging that works for both a procurement lead and a first-time shopper. In the business-to-business-to-consumer (B2B2C) model, you sell to businesses and reach the end customer either directly, through your partners, or both. Customer acquisition is expensive ($89, on average, for B2B ecommerce), and you’re dependent on suppliers to maintain a consistent flow of inventory.

• B2B partnerships help you reduce costs through shared resources and bulk purchasing power.
• Without needing a developer on standby, Shopify’s B2B ecommerce platform allows you to tailor buying experiences.
• From global brand strategy and customer experience to market entry and proposition development, our specialist B2B expertise helps clients reduce risk, uncover opportunities and drive growth.
• Xero accounting software helps you strengthen your business relationships by automating invoicing, streamlining payments, and providing real-time financial visibility to build trust with your B2B partners.
• This includes up to three active B2B catalogs assigned via markets, company profiles, payment terms, volume pricing, ACH payments (US only), and vaulted credit cards.
• Most B2B transactions follow a structured 5-step process that helps both sides reduce risk and build successful partnerships.

Automated invoicing and payment reminders can help you get paid on time and reduce the administrative burden of chasing overdue invoices. Offering tiered pricing or modular packages makes it easier for buyers to find an option that fits their budget and needs. B2B transactions come with unique challenges that can slow growth and increase costs. According to McKinsey, 44% of B2B businesses cite strong relationships as a key driver of sustainable growth. Long-term B2B partnerships create mutual value and trust that compounds over time.

In education, institutions partner with technology providers and publishers to build learning platforms and create digital course materials. In technology and SaaS, companies like Xero, HubSpot, and Salesforce sell software directly to other businesses. Understanding where your business fits can help you identify new partnership opportunities. Clear payment terms help both businesses manage cash flow effectively. Common arrangements include net-30 or net-60 payment windows, and some suppliers offer early payment discounts of 1 to 2%. That means purchasing decisions usually involve multiple people, longer timelines, and a focus on return on investment rather than personal preference.

Customer Research & Segmentation

B2B transactions often involve custom pricing, bulk orders, and negotiated terms that standard online shopping carts don't support. Digital ordering portals, automated reordering systems, and self-service catalogs are replacing phone calls b2b direct and paper-based processes. For example, Xero sells accounting software to businesses through demonstrations, free trials, and ongoing support. Understanding these differences helps you choose the right approach for your market.

As of April 2026, stores on Shopify’s Basic, Grow, and Advanced plans can start selling wholesale using native B2B features, available directly in their admin at no additional cost. Today, Filtrous serves the University of California, Los Angeles (UCLA) and other labs around the world with a modern B2B wholesale experience built on Shopify. B2B means selling products or services to other businesses.

It helps you manage your finances more efficiently, giving you more time to focus on running your business. These partnerships help you focus on your core strengths while outsourcing other functions to experts. "The integration between Full Circle and NuORDER has been paramount to our growth in wholesale. We’re a smaller brand, with limited staff, and the integration allows our wholesale partners access to the same information we have in real-time." "As a company that has been in the wholesale shoe business for over 50 years, NuORDER by Lightspeed has helped Chinese Laundry streamline our sales process and subsequently increase our wholesale orders." An Interactive Guide to Leveraging Market Research to Deliver on Your CX Strategy Customer Experience (CX) covers all the interactions that a customer has with your brand. With over 16,000 buyers surveyed and 35,000 brand experiences tracked across…

Customer concentration risk

Business-to-business (B2B, BtoB or B4B) refers to trade and commercial activity where a business sees other businesses as its customer base. B2G transactions often involve formal bidding processes, compliance requirements, and longer payment cycles than standard B2B deals. It refers to companies that sell products or services to government agencies, public institutions, or municipal bodies. The subscription model means you get regular updates and support without large upfront costs. These are cloud-based software tools sold on a subscription basis to other businesses. B2B relationships also tend to be longer-lasting, with dedicated account management and negotiated contracts.

The biggest differences are in the buying process and relationship structure. The global B2B e-commerce market is worth trillions of dollars and continues to grow as more companies move their purchasing online. When your partners can see that you're organized and reliable, it builds the kind of trust that keeps partnerships going for years. They require consistent effort, clear processes, and the right tools to keep everything running smoothly.

For small businesses, these tools level the playing field with larger competitors. Automated inventory tracking, invoicing, and order fulfillment reduce manual errors and free up your team to focus on higher-value work. The global B2B e-commerce market reached $18.6 trillion in 2023, according to McKinsey, and it continues to grow as more companies shift their purchasing online.

Our experience spans more than 145 countries and thousands of research programs, giving clients access to proven B2B best practices, specialist sector knowledge and global market understanding. Trusted by over 900 brands and backed by more than 4,000 B2B research programs, we bring a depth of experience that few can match. The key differences come down to whom you’re selling to and how relationships are managed. These transactions often involve structured business processes, longer decision cycles, and collaboration between sales professionals and buyers.

Many B2B buyers now research and compare suppliers online before making contact. B2B sales often involve 3 to 12 month timelines because multiple stakeholders need to approve a purchase. B2B partnerships give you access to new technologies, industry insights, and emerging trends that you might not develop on your own. Research suggests that businesses using strategic B2B partnerships can cut expenses by 20 to 40%.

Vertical B2B model

Peter Bendor-Samuel, founder of the research firm Everest Group, refers to vertical B2B as “the future of ecommerce.” However, focus comes with tradeoffs. Examples include Filtrous, a medical supplies brand, and, Wilcor which sells outdoors and camping equipment. Vertical B2B businesses serve a specific industry or supply chain (also known as a “vertical”).

For example, many businesses purchase manufacturing equipment or machines to produce their finish goods. Two, products sold in business to business markets often tend to be more technical in nature because they are often large complex system for things like machinery and equipment. The better platforms help buyers easily find information about the sellers and the relevant information about the products via the website. Typically, it involves companies that do not own or sell the products but serve as a platform to connect sellers and buyers online. It consolidates similar transactions from various industries into one platform, offering trading opportunities for both buyers and suppliers.

B2C involves companies selling directly to individual consumers with shorter sales cycles and emotional purchase decisions. B2B transactions support business operations and drive growth through partnerships between organisations. Manage your B2B relationships effectively to drive long-term success through improved efficiency, trust, and mutual growth. Understanding these differences helps you choose the right model for your business. Currently, 71% of businesses offer e-commerce options, with online sales accounting for 34% of B2B revenue.