B2B ecommerce: definition, advatages, and top tools to use

B2B ecommerce is a business model that has experienced significant growth in recent years, partly thanks to the health emergency which provided an additional boost to this sector.

Investments have not only involved large companies already equipped for electronic commerce, but also smaller, less-structured companies have tried to maintain operational continuity by shifting to B2B online commerce for goods that were previously purchased in more traditional ways.

However, it must be noted that in Italy the presence of B2B commerce in the ecommerce market is still relatively low according to some estimates.

In this article, we will explore what B2B electronic commerce is, the differences between B2B and B2C, the advantages of this model, and the most widely used platforms.

B2B Ecommerce: What It Is and How It Works 

B2B ecommerce is business-to-business electronic commerce, that is, a business model in which the buying and selling of products and services occurs online between two or more companies.

In practice, the online sale of products—which was once limited only to the B2C (Business to Consumer) model—has now expanded to include B2B, where companies purchase products from one another through online platforms instead of traditional physical transactions.

It is a sector that has experienced significant growth in recent years, thanks also to technological developments and the adoption of digital solutions by businesses.

But let's see what the main characteristics of B2B commerce (another term used to refer to online business-to-business commerce) are.

1. Online platforms. Companies use dedicated ecommerce platforms that can be customized to meet the specific needs of businesses (product catalogs, order management, inventory management, etc.). 
2. Automation. A crucial feature in B2B ecommerce, it helps simplify repetitive operations and recurring orders.
3. Personalized pricing. In B2B, product prices can vary based on the volume of purchases, customer type, or contractual agreements.
4. Security and privacy. B2B ecommerce handles large volumes of sensitive data, including a company's financial information. Therefore, data security is fundamental, and companies must adopt strict measures to protect it.
5. Flexibility. An important feature of B2B commerce is the ability to adapt to companies' needs, such as personalized orders or recurring subscriptions.
6. Integration. B2B platforms have this feature to connect with the best ecommerce CMS and other business systems such as invoicing applications, or warehouse or inventory management systems.

Direct and Indirect B2B Electronic Commerce 

In this commerce model, we can distinguish two different approaches: direct and indirect. Let's see what the main differences are.

Direct B2B Electronic Commerce:

1. Companies sell products or services directly to other companies without involving intermediaries such as distributors or traditional resellers;
2. This model is typical of companies that sell specific products or services, for example, manufacturers of industrial components that sell directly to equipment manufacturers.

Indirect B2B Electronic Commerce:

1. There are intermediaries involved in the distribution chain between the producer or supplier and the business buyer;
2. The intermediaries can include distributors, wholesalers, sales agents, resellers, etc.;
3. Transactions often involve multiple parties and can be more complex compared to direct B2B commerce;
4. This model is common in sectors where there are complex distribution chains or a variety of suppliers and products.

B2C: A Commerce Model Different from B2B

We have seen what B2B is; now let's look at what B2C is and what the differences between the two models are.

B2C is the mode of commerce in which companies sell products directly to final consumers (business to consumer). It is the classic retail model where:

• Sales are made directly to consumers (individuals or families);
• Sales channels are diversified (physical stores or online shops, mobile apps, social media, and marketplaces);
• Marketing is oriented towards consumers and their needs;
• Transactions generally involve lower amounts compared to B2B;
• The customer loyalty is also built through personalized experiences and post-sale attention to the consumer;
• Ecommerce reviews play a key role because they influence other consumers’ purchasing decisions and help build the brand’s reputation.

Moreover, technological innovations have had a significant impact on B2C. For example, logistics management technologies make ecommerce shipments faster and more efficient, or the integration with systems such as augmented reality, which enhances the customer experience.

Advances in this field are simplifying all operations, even in the supply chain. Nowadays, logistics and artificial intelligence have become an inseparable pair.

This does not mean that B2B ecommerce will not be influenced by these trends; however, since it is still an expanding sector, it will take some time before it technologically follows in the footsteps of B2C.

Ecommerce in general is a complex ecosystem to manage, which is why even in B2B digital commerce it becomes essential to monitor performance by constantly analyzing data, for example through ecommerce KPIs.

B2B2C: What It Is and the Differences with B2B

As we have seen, the differences between B2B and B2C electronic commerce are substantial, but there are nuances that fall in between. 

In practice, there are other business forms that encompass both types; this is the case of the B2B2C model.

Today, technology has removed the barriers that prevented the shift from one type of commerce to another, and for companies it has become much simpler than before to adopt both commerce models.

In fact, there are B2B companies that open up their market to retail as well, creating a new business model—the B2B2C.

This type of ecommerce eliminates the intermediary that usually stands between B2B and B2C, allowing companies to interact directly with the final consumer. 

To better understand how this model works, let’s take the example of a fashion ecommerce site, which usually sells its products wholesale to clothing stores. As demand increases, the manufacturer decides to also sell retail, opening its ecommerce platform to direct consumers, thus giving life to the B2B2C model.

Of course, the reverse can also occur. Suppose a company that sells products retail decides to expand its market to the B2B sector; in this case, we would have a new model: B2C2B.

This type of commerce can also be implemented with the support of marketplaces like Amazon, but in this case the parent company does not have access to the large amount of data that are essential for understanding the habits, tastes, and needs of its customers—all of which remain in the hands of the marketplace.

This is why many companies choose to develop platforms (as we will see later) capable of managing both commerce models.

B2B Digital Commerce: The Advantages

In 2022, B2B ecommerce reached a value of 468 billion Euros, a 3% increase compared to 2021 (Osservatorio Digital B2B of the School of Management at the Politecnico di Milano).

However, according to this study, B2B ecommerce accounts for only 21% of the total volume of transactions between companies in Italy. 

Although this figure is not very high, it must be considered that this is an expanding sector which, globally is more than 5 times larger than B2C.

B2B ecommerce offers a series of advantages that can improve the efficiency of commercial operations between companies. Here are the main ones:

1. 24/7 Access. Just like in retail, B2B ecommerce platforms are accessible at any time, allowing companies to place orders outside of regular business hours—a significant advantage when dealing with purchases made from different time zones.
2. Geographical Expansion. Companies can reach customers worldwide without the need for a physical presence on site, opening up new markets and growth opportunities, and scaling their business through international shipping.
3. Improved Business Management. Launching a B2B ecommerce platform involves using business management software that provides companies with detailed information about suppliers and customer behavior. This enables them to create better, personalized shopping experiences and to work with a large volume of data to improve their services.
4. Wide Range of Products. B2B buyers can access detailed online catalogs that include a vast range of products, complete with all the information needed to make well-informed purchasing decisions.
5. Personalized Pricing and Offers. Companies can receive personalized pricing based on the quantities ordered, contractual agreements, or the specific characteristics of an order.
6. Process Automation. B2B ecommerce enables the automation of many processes, including quote generation, order management, invoicing, and inventory management, thereby reducing human error and increasing operational efficiency.
7. Reduction of Operational Costs. Digitalizing commercial operations can lead to lower management costs, for example, those associated with printing paper documents, archiving, and physical distribution.
8. Compliance and Security. B2B ecommerce can be configured to ensure data security and regulatory compliance, protecting sensitive information of both buyers and sellers.
9. Shorter Sales Cycle. The ability to place orders online can reduce the time needed to complete the sales cycle, allowing for faster transactions.

B2B Ecommerce: Real-World Examples

Here are 5 concrete examples of B2B commerce and what can be learned from each of them:

1. Staples;
2. Picky Bar;
3. Microfiber Wholesale;
4. Uline;
5. Amy Myers MD;

1. Staples

Staples is an office supplies store that has created a B2B division allowing companies to purchase office supplies, furniture, IT equipment, and services directly from Staples. 

The switch between versions happens with a simple click, and buyers are directed straight to either the B2C or B2B store to make small purchases or to place large bulk orders.

The design remains the same in both versions—simple and intuitive—and from the homepage users can access the system according to their company type.

2. Picky Bar

Picky Bar is a company run by professional athletes that sells energy products both to consumers and resellers. 

The B2B version of the ecommerce site is as colorful and inviting as the B2C one, featuring a CTA that allows users to order directly from the homepage or place wholesale orders easily by clicking the quick order button at the top.

Additionally, this company offers its business clients direct access to brand resources such as logos, color palettes, product photos, etc., allowing customers to personalize products with the parent company’s brand.

3. Microfiber Wholesale

Microfiber Wholesale is a company that sells microfiber products (mops, cloths, etc.) to cleaning professionals, catering to both business and consumer markets.

The site is presented just like a B2C store—a simple, intuitive, and practical showcase where products can be viewed with detailed descriptions and explanatory videos, useful for both consumers and resellers.

4. Uline

Uline is a U.S.-based company specializing in packaging, industrial products, and office supplies. Its B2B ecommerce platform demonstrates how a company can manage both retail and wholesale sales, serving both consumer and business clients.

It offers an extensive catalog of products ranging from packaging supplies to office products and industrial items, and is designed to handle small orders or bulk transactions.

5. Amy Myers MD

Amy Myers MD is an ecommerce brand that sells supplements and skincare products. In this case as well, the ecommerce platform can manage both direct-to-consumer and business sales seamlessly.

The product pages describe the benefits, ingredients, and usage instructions. Additionally, there is an FAQ section and explanatory videos for customers. 

The section dedicated to business clients presents essential information for companies, such as allergen declarations and a section dedicated to wholesale purchases.

B2B Ecommerce Software: The Most Used Platforms

Let’s review the main platforms that allow the creation of a B2B ecommerce site.

1. Amazon Business
2. Salesforce Commerce B2B
3. B2B Ecommerce Shopify Plus
4. BigCommerce
5. Oracle SuiteCommerce

1. Amazon Business

Amazon Business is a section of Amazon dedicated to B2B ecommerce.

Amazon Business offers a vast catalog of products, enabling companies to find almost everything they need on a single platform.

It offers competitive prices and discounts across many product categories, as well as personalized pricing options for companies making wholesale purchases.

Another feature is order approval. It is possible to set up order approval hierarchies to control and monitor company purchases, maintaining accountability and transparency in procurement operations.

2. Salesforce Commerce B2B

Salesforce Commerce B2B is a B2B ecommerce solution provided by Salesforce, one of the world’s largest and most renowned software companies. 

B2B Commerce Cloud refers to a cloud-based software solution designed specifically for companies looking to extend electronic commerce to their business customers.

Its main features include the flexibility and scalability of the platform, which can be adapted to the needs of companies of various sizes. 

Other characteristics include the automation of procurement, ordering, and inventory management processes and the ability to perform data analysis to help companies monitor their performance.

3. B2B Ecommerce Shopify Plus

Shopify is one of the most important ecommerce platforms in the world, and its business version, B2B Ecommerce Shopify Plus, allows managing both business and consumer customers from the same platform.

It offers a series of features and applications that enable companies to create and manage B2B commerce, such as: 

• Process automation which reduces time and human errors and simplifies transaction management;
• Integration with applications that allow companies to add functionalities to their B2B store;
• High customization to enhance the customer experience, both for business and consumer sides;
• Security and reliability to protect data; 
• A series of marketing tools such as discounts, promotions, email campaigns, etc. 

4. BigCommerce

BigCommerce is the B2B platform from BigCommerce that allows companies to easily integrate both business models by synchronizing data across CRM, ERP, OMS, and other client platforms. 

It offers a high degree of customization for B2B stores, enabling companies to create tailored shopping experiences for their customers and offering personalized pricing based on order quantity or contracts.

BigCommerce also provides advanced analytics tools to monitor B2B ecommerce performance, with particular attention to the security of customer and company data, while simplifying and automating ordering and invoicing processes.

5. Oracle SuiteCommerce

Part of Oracle's NetSuite family, SuiteCommerce is a B2B ecommerce platform designed to handle both retail and B2B commerce for medium-sized companies.

As part of the Oracle ecosystem, SuiteCommerce easily integrates with other products like Oracle ERP and CRM. It offers advanced customization for its B2B and B2C clients and advanced features for managing inventory and procurement processes.

Finally, this platform ensures a high level of security for sensitive consumer and company data and provides multichannel sales support.

B2B Commerce: Conclusions

If in the past it was thought that ecommerce could not meet the needs of B2B companies, today we must rethink that notion.

Every company, if well-structured from a financial and organizational perspective, can consider creating a successful B2B and B2B2C ecommerce platform.

Today, B2B ecommerce is transforming the way companies conduct their business activities, making the process of purchasing products and services between companies—and between companies and consumers—more efficient. 

This, in turn, allows brands to broaden their target market and scale their business.

Frequently Asked Questions

How much does a B2B website cost?

The cost of a B2B website varies based on a range of factors from customization to site complexity, design, and additional functionalities. Another important aspect to consider is whether you require the service of a web development agency or a freelance professional. Generally, taking into account hosting and ongoing maintenance costs, the expense can range from 5,000 Euros to 10,000 Euros, unless platforms offering complete packages with various monthly subscription plans are used.

How do you build customer loyalty in B2B?

Here are some strategies to build loyalty among your B2B customers: 

• Offer excellent customer service by promptly addressing their needs and resolving their issues;
• Tailor your offerings to the specific needs of B2B clients;
• Maintain constant communication with customers by providing updates and useful content;
• Create loyalty programs or incentives to reward the loyalty of business customers;
• Provide training and support to companies to maximize the use of your products or services;
• Ask for and listen to customer feedback to make improvements;
• Maintain consistent quality and coherence in your products and services;
• Honor commitments and deliver on time.

What is the difference between B2B and B2C?

The main difference between B2B (business to business) and B2C (business to consumer) is the type of clientele each model targets. B2B is a business model where transactions occur between companies, selling products or services to other businesses or organizations. In B2C, companies sell directly to final consumers—individuals who purchase for personal or family use. 

How does B2B work?

B2B is a commerce model in which the buying and selling of products and services takes place between two or more companies. Generally, the steps to set up this type of business do not differ much from those in B2C (business to consumer):

• Identification of the target business audience;
• Promotion and marketing;
• Creation of contracts;
• Lead generation; 
• Negotiation; 
• Provision of products or services;
• Maintaining long-term relationships with business customers.