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

Business-to-business (B2B) describes companies that sell to other businesses. The B2B model works through structured exchanges where businesses trade goods, services, or knowledge with each other. It's the commercial space where businesses trade with each other, representing a massive market with more than 5 million limited companies registered in the UK alone. Business-to-business (B2B) means one company sells products or services to another company, rather than to individual consumers. Get the most out of your tools.

We help ambitious B2B organizations understand customers, strengthen brands, identify growth opportunities and make confident business decisions through evidence-led insight. However, only 47% of B2B leaders say their current platform is very effective, according to Shopify’s research with B2B Online and Deloitte Digital. A May 2025 study from Adobe and Forrester found that 71% of of B2B buyers say brands should understand when, where, and how they want personalized interactions. Businesses using Shopify B2B see up to a 4.1 times increase in reorder frequency compared to DTC orders, highlighting the higher volume and repeat nature of business buyers. These platforms focus on building long-term relationships and providing solutions tailored to each business's needs.

This step is what turns a one-time transaction into a long-term partnership. After terms are agreed, the supplier delivers the products or services as specified. A restaurant chain might negotiate a 15% discount for ordering equipment across all locations. This step often involves volume discounts, delivery schedules, and service-level agreements.

Xero provides accounting software that helps small businesses track finances, send invoices, and manage payroll. B2B relationships help you reduce operational costs, increase efficiency, and accelerate business growth. B2B involves companies selling to other businesses with longer sales cycles and multiple decision-makers. B2B partnerships can lower costs through shared resources and purchasing efficiencies, but how much you save depends on how you arrange the partnership. The enterprise-grade buying platform that helps retailers minimize overbuying, reduce markdowns, and increase profit margins.

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Without needing a developer on standby, Shopify’s B2B ecommerce platform allows you to tailor buying experiences. 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. E-procurement systems also automate processes of bidding, vendor management, and contract execution, accelerating procurement cycles and supporting more accurate decision-making. B2B sales involve longer timelines, multiple decision-makers, and a focus on business outcomes like efficiency and return on investment.

Horizontal B2B model

• These digital approaches streamline procurement, enhance transparency, and reduce transaction costs globally (Ju & Tang, 2017).
• These platforms focus on building long-term relationships and providing solutions tailored to each business's needs.
• These platforms cater to businesses that require bulk orders, custom solutions, and specific operational requirements.
• The decision-making process in B2B transactions typically involves multiple stakeholders, such as procurement managers, financial officers, and technical experts, who assess the value proposition over time.
• In addition to online purchasing, the introduction of advanced AI tools has changed the way strategic decisions are taken by procurement executives.

E-procurement has become a key driver of efficiency and competitiveness. As an example, Dell works with upstream suppliers of integrated circuit microchips and computer printed circuit boards (PCBs). This is especially true in firms with 500 employees and above, of which there were 19,464 in 2015, where it is estimated that as many as 72% are businesses that primarily serve b2b content consumption other businesses. Specific combinations of contracts and relational norms may influence the nature and dynamics of the negotiations between firms. B2B is often contrasted with business-to-consumer (B2C) trade, the latter of which typically sells directly to the general public and consumers, rather than other businesses and organisations.

Ongoing support includes regular maintenance, software updates, account reviews, and performance check-ins. This could include equipment installation, staff training, or software onboarding. For example, a restaurant chain looking to upgrade its kitchen equipment might research suppliers, request catalogs, and schedule meetings to explore options. The process begins when your business identifies a need and reaches out to potential suppliers or service providers. In a B2B model, you trade goods, services, or expertise with other businesses to support your operations and growth.

Vertical B2B businesses serve a specific industry or supply chain (also known as a “vertical”). 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.