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

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.

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. 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."

B2B e-commerce refers to online transactions between businesses, including digital marketplaces, automated ordering systems, and electronic procurement platforms. Examples include accounting platforms, CRM systems, project management tools, and marketing automation software. HubSpot and Salesforce offer CRM and marketing tools that help businesses manage customer relationships at scale. While the B2B world does include IT platforms selling email tools, inventory software, or analytics dashboards to ecommerce merchants, it’s bigger than software as a service (SaaS).

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%.

The enterprise-grade buying platform that helps retailers minimize overbuying, reduce markdowns, and increase profit margins. The B2B eCommerce platform designed to support your entire wholesale business, from department stores to specialty and off-price retailers. With research conducted across 145+ countries and experience spanning every major industry sector, we help brands make confident business decisions wherever growth opportunities exist. Because understanding complex B2B markets requires more than processing data. But the decisions that shape brands, propositions and customer experiences still require human judgement. We help ambitious B2B organizations understand customers, strengthen brands, identify growth opportunities and make confident business decisions through evidence-led insight.

Vertical B2B model

Consider listing your business on industry-specific platforms and directories where potential partners search for suppliers. When you invest in lasting partnerships, you gain reliable suppliers, preferred pricing, and partners who understand your business. B2B partnerships help you reduce costs through shared resources and bulk purchasing power.

Longer sales cycles

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. Running a successful B2B operation means staying on top of invoicing, payments, and cash flow across multiple partnerships. Digital platforms are transforming B2B procurement, making it faster, more transparent, and more efficient. Financial services companies like Stripe and Bank of America offer payment processing, lending, and risk management services to other businesses.

Most B2B transactions follow a structured 5-step process that helps both sides reduce risk and build successful partnerships. 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. 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. Without needing a developer on standby, Shopify’s B2B ecommerce platform allows you to tailor buying experiences.

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. 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.

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.

Discover and connect with new brands

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. 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. These platforms cater to businesses that require bulk orders, custom solutions, and specific operational requirements.

• B2B e-commerce refers to online transactions between businesses, including digital marketplaces, automated ordering systems, and electronic procurement platforms.
• HubSpot and Salesforce offer CRM and marketing tools that help businesses manage customer relationships at scale.
• Examples include accounting platforms, CRM systems, project management tools, and marketing automation software.
• When you invest in lasting partnerships, you gain reliable suppliers, preferred pricing, and partners who understand your business.

Many B2B platforms also integrate with accounting and enterprise resource planning b2b abm (ERP) software to keep financial data synchronized across systems. 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 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.

In addition to online purchasing, the introduction of advanced AI tools has changed the way strategic decisions are taken by procurement executives. These digital approaches streamline procurement, enhance transparency, and reduce transaction costs globally (Ju & Tang, 2017). Successful B2B operations depend upon sales personnel understanding the purchasing behaviour and outlook of the types of business they wish to work with. B2B e-commerce is the online sale of products or services between businesses. Xero accounting software gives you the tools to manage it all in one place, so you can spend less time on admin and more time growing your business.

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… 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.