Business-to-business (B2B)

What is business-to-business (B2B)?

Business-to-Business (B2B) refers to transactions where one business sells products or services directly to another business, rather than to individual consumers. It’s common in industries like manufacturing, wholesale, SaaS, and professional services.

The B2B meaning is all about one business supporting another. Instead of focusing on individual shoppers, B2B companies serve other companies, helping them run, grow, or deliver their own products and services. These relationships often involve custom pricing, bulk orders, and longer-term contracts. A large share of modern B2B operates on a subscription business model, where software, supplies, or services are billed recurrently under annual or multi-year agreements.

How is B2B different from B2C?

B2B and business-to-consumer (B2C) differ across several dimensions:

• Audience: B2B targets companies and procurement teams; B2C targets individual shoppers.
• Deal size: B2B sales are typically larger, often involving bulk orders or long-term contracts.
• Sales cycle: B2B purchases involve multiple decision-makers (procurement, finance, end users) and can take weeks or months to close. B2C tends to be quick and emotion-driven.
• Pricing and payment: B2B often uses custom or tiered pricing, volume discounts, and net payment terms (for example, net 30 invoicing). B2C is usually fixed retail pricing paid up front.
• Relationship: B2B is built on long-term account management; B2C is more transactional.

Example of B2B in ecommerce

A software company selling a subscription-based inventory tool to Shopify merchants is operating B2B. The merchant pays a recurring fee for the software, then sells products to everyday shoppers, which is a B2C transaction. Other recognizable examples include Faire (a wholesale marketplace connecting brands with retail buyers), packaging suppliers like EcoEnclose selling shipping materials in bulk to ecommerce stores, and Shopify itself, which is a B2B platform sold to merchants who in turn run B2C stores.

Driftcharge Tip

B2B subscription customers expect a polished experience, just like consumers do. Offer self-serve account portals, clear billing visibility, and reliable auto-renewal for annual contracts so business clients can manage their subscriptions without needing hand-holding from your team.

Ganesh Pawar

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Ganesh Pawar is the founder of Driftcharge, a subscription management app designed to help Shopify merchants streamline and scale their subscription businesses. With a deep focus on solving real-world pain points—like legacy account page support, flexible subscription options, and advanced analytics—Ganesh is passionate about building tools that drive growth and retention.