Your e-commerce glossary

All the terms you need to know to succeed in modern e-commerce, explained simply and clearly.

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What is B2B?

B2B refers to transactions between businesses, where wholesalers, manufacturers, or service providers sell products or services to other businesses.

Explanation

B2B (Business-to-Business) refers to commercial transactions between businesses rather than between a business and individual consumers. In the context of Shopify, B2B involves creating customized pricing, bulk ordering options, or wholesale experiences tailored to the needs of other businesses. B2B commerce is integral for companies that sell in large quantities or offer specialized services/products to other companies rather than direct-to-consumer sales.

Importance

  • Revenue Potential: B2B transactions typically involve larger order volumes and higher transaction values, providing businesses with more revenue opportunities.
  • Long-term Partnerships: Establishing relationships with other businesses can lead to long-term, repeat sales and partnerships.
  • Bulk Sales Opportunities: B2B allows businesses to offer bulk discounts and specialized pricing, which can increase order frequency and value.
  • Niche Targeting: B2B allows businesses to serve a specific market, tailoring products and services to meet the needs of other businesses.

How It Works

  • Business Setup: Shopify merchants set up B2B-specific features such as custom pricing, payment terms, and bulk order capabilities.
  • B2B Platform Integration: Tools and apps designed for B2B sales integrate into Shopify, allowing merchants to manage business-to-business orders, track bulk purchases, and offer special pricing or discounts.
  • Customization: Merchants can offer personalized experiences with wholesale pricing, bulk discounts, or exclusive products for B2B customers.
  • Payment & Order Management: Businesses use payment terms, invoices, and bulk order forms to process and manage transactions efficiently.

Benefits

  • Higher Transaction Value: B2B transactions tend to have higher average order values (AOV), boosting revenue potential.
  • Recurring Sales: Businesses often place repeat orders, which results in a steady stream of income.
  • Tailored Offerings: Businesses can create custom pricing, discounts, and solutions to meet the specific needs of other companies.
  • Scalable Operations: B2B systems often allow for bulk ordering and large-scale distribution, making it easier for businesses to grow.

Top B2B Apps for Shopify:

Abandoned Cart Recovery
B2B & Wholesale Solution - BSS Commerce

- Offers the ability to set up custom pricing and discounts based on customer groups.

- Enables wholesale merchants to manage bulk orders and offers a streamlined purchasing process for B2B buyers.

Abandoned Cart Recovery
SparkLayer B2B & Wholesale

- A B2B eCommerce platform that integrates seamlessly with Shopify.

- Provides business buyers with a personalized shopping experience with features like custom pricing, payment terms, and easy reordering.

Abandoned Cart Recovery
B2B Wholesale Hub

- Allows merchants to create a dedicated wholesale storefront.

- Features options for creating tiered pricing, managing orders, and offering exclusive B2B products and promotions.