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

You don’t have to choose between selling to businesses and selling to consumers. Horizontal models can expand quickly and serve a larger customer base without starting from scratch in every new industry. Instead of going deep into one vertical, they solve a common problem, like payments, packaging, or communications across multiple sectors. Vertical B2Bs are tailored ecosystems that offer curated inventories, integrated logistics tools, and insights specific to their sectors. “We’re confident that, no matter how big we grow, or how many orders we get on a given day, Shopify could handle it,” says Yin Fu, Filtrous’s director of ecommerce. If your customer is another business—whether they’re buying to resell, fulfill, distribute, or operate—you’re in B2B territory.

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B2B, or business to business, is a business model where companies sell products, services, and information to other businesses, rather than directly to consumers. The new generation of business buyers also insist on the same seamless experience they get as consumers. Start your free trial with Shopify today—then use these resources to guide you through every step of the process. The purchase of these types of equipment tends to be more technical because of the complexity of this type of equipment. An aim of B2B2C is to "create a mutually beneficial relationship between suppliers of goods and services and online retailers". The adoption of such systems has proven beneficial for both large corporations and small and medium-sized enterprises that face mounting challenges due to globalization and intensified market competition.

Types of B2B business models

B2B businesses fall into several categories, each supporting other companies in different ways. The result is greater efficiency and lower costs for your business. Training programsDigital learning tools and ready-to-assist wholesale experts Our professional services team partners with you throughout your journey to ensure a smooth onboarding experience, maximize user adoption, answer questions, and share best practices. Integrations with 120+ ERP, PLM, and POS systems feed real-time product, inventory, and order data into the platform.

B2B companies operate across every industry, providing the products, services, and technology that other businesses need to function. 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 b2b marketing sales funnel 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.

B2B is when businesses connect to sell goods or services that support operations, like software, logistics, or raw materials. Results reflect the experiences of this specific sample and may not be representative of all merchants. This reflects the sophistication required to manage account-level pricing and multi-entity billing at scale. The 6Sense 2025 B2B Buyer Experience Report puts the average B2B sales cycle at 10.1 months, down from 11.3 months the year before. For example, a cellphone brand could ship thousands of devices to a telecom provider and also sell directly through its own online store.

Vertical B2B model

• Digital platforms are transforming B2B procurement, making it faster, more transparent, and more efficient.
• Running a successful B2B operation means staying on top of invoicing, payments, and cash flow across multiple partnerships.
• Financial services companies like Stripe and Bank of America offer payment processing, lending, and risk management services to other businesses.
• Xero provides accounting software that helps small businesses track finances, send invoices, and manage payroll.
• 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.

In a B2B model, you trade goods, services, or expertise with other businesses to support your operations and growth. Business-to-business (B2B) refers to transactions where one company sells products or services to another company rather than to individual consumers. Purchase any Xero plan, and we will give you the first month free. They allow you to focus on your core strengths while outsourcing other functions to expert partners. Managing B2B relationships effectively drives long-term business success through improved efficiency, trust, and mutual growth.

Project management software centralises task tracking, file sharing, and team communication in one platform, reducing email chains and missed deadlines. B2B transactions present unique challenges that can slow growth and increase costs. The shift to digital B2B is accelerating, reflecting an increased reliance on digital payments as non-cash transactions are predicted to grow at 12% a year. B2B companies operate across every industry, providing essential services, products, and technology to other businesses.