What is Business-to-Business (B2B)?

B2B 28 August 2025

1. What is B2B?

Business to Business (B2B) is exactly what it sounds like—transactions, agreements, or relationships that are solely between two businesses, excluding an individual consumer.

B2B also encompasses wholesale transactions, supply agreements, subscriptions, service contracts, and financial arrangements encompassing loans and credit lines.

2. How B2B Differs from B2C

Parties Involved: B2B interactions are always between companies whereas B2C (Business to Consumer) deals directly with end users or consumers.
Transaction Size: B2B transactions are typically larger in volume and value than B2C and often include bulk purchases or long-term contracts.
Complexity: B2B deals are often more intricate involving multiple rounds of negotiations, flexible pricing, extensive documentation, and sometimes tailored contracts while B2C purchases are simple.
Relationship: B2B relationships are long-term and strategic while B2C interactions are more to-the-point and do not last long.
Decision Process: B2B buying decisions are logical and structured, often requiring multiple approvals while B2C decisions are emotional and instantaneous.

3. Common B2B Transaction Examples

Bulk Buying: These are purchases made by businesses from suppliers. A good example is a mechanic buying car parts.
Wholesale Deals: Buying raw materials in bulk by manufacturers at a negotiated price and minimum order quantity.
Services: Purchasing specialized services from other firms such as a cleaning company hired by a real estate firm.
Partnerships: Long-term collaborations or joint ventures of two businesses for mutual gain.

4. Tools and Software for B2B Transactions

Linesheets: Essential catalogs for wholesale purchasing with detailed product information, pricing, and minimum order stipulations.
Variable/Custom Pricing: Flexible pricing based on customer contracts or order size, common in B2B systems.
B2B Commerce Platforms: Software solutions that can process orders, accept payments, and interface with back-office systems on a SaaS basis, greatly increasing the speed and transparency of transactions.
Integrated Payments: B2B customized instruments for automating and tracking payments, including complex refund, payout, and payment schedule tracking.

5. How to Streamline B2B Transactions

Adopt SaaS Platforms: Enable more efficient B2B online ordering and transaction data centralization through seamless integration with online ordering systems.
Look for Platforms with Marketing Integrations: Manage automated outreach and automated customer engagement to business clients from one dashboard.
Ensure Security and Compliance: Look for systems with strong compliance to laws like GDPR and PCI DSS that can handle sensitive information and large payments securely.