What Is B2B? Key Features Explained

Looking for ways to scale your business? Then it’s time to consider B2B sales. In this article, we’ve gathered everything you need to know to get started — from how the B2B model works to what makes it different, and how to build strong relationships with business clients.

B2B (short for Business-to-Business) is a business model where one company supplies goods or services to another company, rather than to an individual consumer. What sets the B2B market apart is the partnership-based nature of transactions: the seller earns revenue from a deal, while the buyer invests in growing their own business.

Companies typically buy from other businesses with one of the following goals in mind.

1. Reselling goods – An online store orders a large batch of products from a supplier at wholesale prices and then sells them on with a markup to end customers.

2. Manufacturing products – A company purchases equipment or raw materials to produce and sell their own goods. For instance, a clothing retailer with in-house production may buy sewing machines, fabric and accessories.

3. Improving internal processes – A business may invest in training courses for staff, hire consultants for marketing, or subscribe to services and software tools that streamline operations.

A B2B company can also operate in the B2C segment, selling directly to end consumers without intermediaries. Well-known clothing brands like Puma and Adidas are good examples: they sell through distributors (B2B), but also run their own branded stores (B2C).

Key Characteristics of the B2B Market

Working with business clients is very different from serving individual consumers. B2B companies usually engage in structured negotiations, agree on terms of cooperation, and often sign formal contracts. Business clients are typically experts in their own fields, which makes them more selective and demanding when choosing a company to partner with. Let’s take a closer look at the main features of the B2B model.

Longer Sales Cycles

Unlike the B2C market, where impulse buying is common and decisions are made quickly, the B2B sales process takes time. From the first point of contact to the start of collaboration, several stages may be involved. These typically include an introduction, review of the commercial offer, negotiations, adjustments if needed, and final agreement. The length and complexity of the cycle depends on the niche and the client’s goals. If the client is looking to place small, regular orders, the process may move quickly. However, when large-scale supply contracts are involved, more time is needed to clarify terms and build trust.

Rational Decision-Making

Emotions play little to no role in B2B purchasing decisions. The process is strategic and deliberate. Before entering negotiations, clients analyse the market, compare multiple potential suppliers, and choose the one that offers the best value for money. This makes the promotional approach for B2B quite different from B2C. A solid reputation and strong references from other clients are especially important in this sector.

High Average Order Value

The value of a B2B contract can often reach tens of thousands of dollars — something rarely seen in B2C outside of major purchases like property. That said, B2B pricing is typically flexible. Since long-term, mutually beneficial relationships are the goal, prices can vary from one client to another. The final cost of goods or services is often determined during negotiations.

Multi-Level Decision-Making

In B2B sales, decisions are rarely made by a single person. Instead, they typically involve a team of professionals — from sales managers to company owners. The larger the deal, the more stakeholders are usually involved. This is where the term «decision-makers» (or DMs) comes into play. A decision-maker might be one individual or a group — for example, the company’s CEO, CFO and Head of Sales. In some cases, even middle management, such as a partnership manager, can influence the outcome of a deal.

Niche Target Audience

The B2B segment often serves a narrow group of potential clients, with a comparatively high cost of lead acquisition. That’s why, in B2B markets, retaining existing customers is often more profitable than constantly chasing new ones.

How to Work Successfully with B2B Clients

In the B2B world, sales are built on partnership. Trust, mutual benefit and smooth cooperation lie at the heart of every strong business relationship. To run a successful B2B business, it’s essential to communicate effectively with your clients — and that requires a comprehensive, well-thought-out approach.

Building a Modern B2B Portal

A B2B portal is a dedicated website where your company can showcase and sell its products or services to both existing and potential partners. It automates many routine tasks, helping your team focus on more strategic work. At the same time, your clients gain 24/7 access to the information they need — from cooperation terms and product listings to pricing, order history, and bulk purchasing — all just a few clicks away, and without needing to contact a sales rep.

Modern B2B portals are usually integrated with internal accounting or stock management systems, ensuring clients always see up-to-date information with no need for clarifications.

Having a well-designed B2B portal significantly streamlines and accelerates cooperation between you and your clients. It makes doing business more convenient and efficient for both sides. On the Horoshop platform, you can build your own B2B portal equipped with all the tools needed for wholesale trading — including volume-based pricing, optional stock visibility, customised delivery and payment settings for different customer groups, and more. You can explore the full list of features via this link.