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

David Yadzi launched the business from his garage, selling lab-grade syringe filters to other companies. Ahead, you’ll learn what B2B looks like today, the business models B2B store owners are using to grow, how B2B compares to B2C, and the challenges and trends in 2026 and beyond. “Now we’re seeing them be so comfortable with the experience that they’re placing orders for thousands of dollars worth of product from their mobile phones." What makes B2B structurally different is how that volume moves.

• In addition to online purchasing, the introduction of advanced AI tools has changed the way strategic decisions are taken by procurement executives.
• These platforms focus on building long-term relationships and providing solutions tailored to each business's needs.
• These digital approaches streamline procurement, enhance transparency, and reduce transaction costs globally (Ju & Tang, 2017).
• 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.

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. 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.

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. Most B2B transactions follow a structured 5-step process that helps both sides reduce risk and build successful partnerships.

How Skida moved 81% of wholesale orders to self-serve

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 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.

That’s more than three times the size of global B2C ecommerce, and the gap keeps widening. In 2026, the business-to-business (B2B) ecommerce market is valued at $36.86 trillion. For one, the number of products sold in B2B markets dwarfs the number sold in consumer markets. Business-to-business (B2B) markets differ from business-to-consumer (B2C) markets in many ways. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windows, and rubber hoses for its vehicles.

Brand & Communication Research

In many cases, the overall volume of B2B (business-to-business) transactions is much higher than the volume of B2C transactions. According to the TechTarget website, the purpose of the terminology is to "extend the business-to-business model to include e-commerce for consumers". E-procurement has become a key driver of efficiency and competitiveness.

While B2B and business-to-consumer (B2C) businesses both sell products and services, the way they operate is quite different. Invest in a clear, professional website that explains your products or services. If your business doesn't have a strong digital presence, you could miss out on opportunities. Set clear payment terms from b2b market segmentation the start and use cash flow forecasting to plan ahead.