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

For small businesses, these tools level the playing field with larger competitors. Automated inventory tracking, invoicing, and order fulfillment reduce manual errors and free up your team to focus on higher-value work. The global B2B e-commerce market reached $18.6 trillion in 2023, according to McKinsey, and it continues to grow as more companies shift their purchasing online. Automated invoicing and payment reminders can help you get paid on time and reduce the administrative burden of chasing overdue invoices.

For example, many businesses purchase manufacturing equipment or machines to produce their finish goods. Two, products sold in business to business markets often tend to be more technical in nature because they are often large complex system for things like machinery and equipment. The better platforms help buyers easily find information about the sellers and the relevant information about the products via the website.

Working with innovative partners also helps you respond faster to market changes. B2B partnerships let you scale without building every capability in-house. Strong B2B partnerships can help you operate more efficiently, grow faster, and stay competitive. According to McKinsey's 2024 B2B Pulse survey, 71% of B2B companies now offer e-commerce, and online sales account for 34% of total B2B revenue. Stripe, for example, provides the payment infrastructure that powers online transactions for thousands of companies.

Typically, it involves companies that do not own or sell the products but serve as a platform to connect sellers and buyers online. It consolidates similar transactions from various industries into one platform, offering trading opportunities for both buyers and suppliers. Business-to-business (B2B, BtoB or B4B) refers to trade and commercial activity where a business sees other businesses as its customer base.

Types of B2B business models

B2G transactions often involve formal bidding processes, compliance requirements, and longer payment cycles than standard B2B deals. It refers to companies that sell products or services to government agencies, public institutions, or municipal bodies. The subscription model means you get regular updates and support without large upfront costs. These are cloud-based software tools sold on a subscription basis to other businesses. B2B relationships also tend to be longer-lasting, with dedicated account management and negotiated contracts. The biggest differences are in the buying process and relationship structure.

The global B2B e-commerce market is worth trillions of dollars and continues to grow as more companies move their purchasing online. When your partners can see that you're organized and reliable, it builds the kind of trust that keeps partnerships going for years. They require consistent effort, clear processes, and the right tools to keep everything running smoothly.

Lower costs and increase efficiency

Peter Bendor-Samuel, founder of the research firm Everest Group, refers to vertical B2B as “the future of ecommerce.” However, focus comes with tradeoffs. Examples include Filtrous, a medical supplies brand, and, Wilcor which sells outdoors and camping equipment. Vertical B2B businesses serve a specific industry or supply chain (also known as a “vertical”). As of April 2026, stores on Shopify’s Basic, Grow, and Advanced plans can start selling wholesale using native B2B features, available directly in their admin at no additional cost. Today, Filtrous serves the University of California, Los Angeles (UCLA) and other labs around the world with a modern B2B wholesale b2b marketing sales funnel experience built on Shopify. B2B means selling products or services to other businesses.

• 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.
• 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.
• Without needing a developer on standby, Shopify’s B2B ecommerce platform allows you to tailor buying experiences.
• 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.

Sell your products to retailers around the world

Offering tiered pricing or modular packages makes it easier for buyers to find an option that fits their budget and needs. B2B transactions come with unique challenges that can slow growth and increase costs. According to McKinsey, 44% of B2B businesses cite strong relationships as a key driver of sustainable growth. Long-term B2B partnerships create mutual value and trust that compounds over time.