B2B (business-to-business)
Quick answer
B2B (business-to-business) means trade between two companies: one sells products or services to another, not to consumers, usually at negotiated prices.
Key takeaways
- Fewer buyers, larger orders: the average order value is higher and the customer count lower
- Negotiated pricing: price lists, discounts and payment terms are set by contract, per customer
- Multi-step decisions: users, procurement, finance and sometimes management are involved
- Recurring relationship: the same customer buys repeatedly, so retention matters, not just the first sale
- Documents and integration: order, despatch advice, invoice, sometimes electronic exchange (EDI) between systems
What B2B means
B2B (business-to-business) describes any transaction where the customer is a company, not an individual. A manufacturer selling to a distributor, a distributor delivering to a store, or a software firm selling licences to another firm are all B2B relationships. The opposite is B2C (business-to-consumer), where the buyer is the end consumer.
How B2B selling differs from B2C
- Fewer buyers, larger orders: the average order value is higher and the customer count lower
- Negotiated pricing: price lists, discounts and payment terms are set by contract, per customer
- Multi-step decisions: users, procurement, finance and sometimes management are involved
- Recurring relationship: the same customer buys repeatedly, so retention matters, not just the first sale
- Documents and integration: order, despatch advice, invoice, sometimes electronic exchange (EDI) between systems
Common mistakes
1. Treating B2B customers like consumers. A shopping cart without contract prices, credit limits and repeat orders does not cover what a business customer needs.
2. Confusing B2B with B2B2C. In B2B2C the company sells through a partner to the end consumer; the direct commercial relationship stays with the partner.
3. No single view of the customer. When quotes, orders and invoices live in separate systems, the team cannot see the history of the relationship.
How it shows up in a CRM and operations platform
In a CRM for B2B sales, each customer company has a record with contacts, quotes, orders and invoices. CRMconnect has a B2B portal for distributors in which commercial terms (price, discount, payment term) apply automatically per customer, and orders are placed directly in the portal against real stock.
Real-world example
A beverage manufacturer sells to a regional distributor under contract, with its own price list and 30-day payment. The distributor resells to stores, also B2B. The store then sells to the shopper at the shelf, which is a B2C relationship.
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Frequently asked
What is the difference between B2B and B2C?+
In B2B the customer is a company buying under a contract, in larger volumes and with a multi-step decision. In B2C the customer is the end consumer, the purchase is individual and usually not negotiated.
What is a B2B relationship?+
It is the commercial relationship between two companies, usually based on a contract, negotiated prices, repeat orders and payment terms. Continuity matters more than the first transaction.
What is a B2B customer?+
A B2B customer is a company or institution buying for its own business: to resell, to produce or for internal use. It buys on invoice, usually with deferred payment.
What is a B2B platform?+
A system through which companies place orders online, see contract prices and stock, and track their documents. It can be a supplier's portal or a marketplace with several sellers.
Where CRMconnect fits
Where CRMconnect helps
Commercial terms (price, discount, payment term) are applied automatically per distributor, and orders are placed directly in the portal against real stock.
Related terms
B2B Portal
An online platform where business customers (distributors, retailers, HoReCa) place orders 24/7 at their contract prices.
B2B commerceB2B E-commerce
Electronic commerce between companies: business customers ordering online, with contract prices, credit and B2B-specific flows.
B2B commerceSelf-service ordering
The model where the B2B customer places orders online themselves, without going through an agent or back office.
B2B commerceContract pricing
Individually negotiated per-customer B2B prices, different from list price, applied automatically at order time.