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Business-to-Business (B2B)

Business-to-Business or B2B is a business model where a company provides its goods or services to another company, rather than to a regular consumer. In simple terms, in the B2B model, one business facilitates the operations of another business. A typical example of B2B is wholesale trade, where a supplier sells its goods to stores, which then sells them to end consumers. The B2B model also applies not only to physical goods but also to the provision of services or software sales. Companies providing consulting services or auditing to other firms, for example, operate under the B2B model.

One should not confuse the B2B model with B2C. Business-to-Customer (B2C) is a form of business where the manufacturer or supplier sells its goods directly to end consumers without intermediaries. Examples of B2C include well-known clothing brands like Puma or Adidas, who sell their products both through distributors under the B2B model and in their own stores under the B2C model.

Working with large B2B clients significantly differs from dealing with regular customers. In this case, businesses need to negotiate, agree on terms of cooperation, and possibly even sign contracts. B2B clients usually have expertise in their niche, so they are more careful when choosing a company to partner with.

To establish cooperation with potential clients, a B2B business must have a good reputation and clear positioning. Clients should know what they will receive and under what conditions, as well as how they are protected from various risks. After all, B2B is not about retail trade, but about large batches of goods for corresponding sums. A good B2B business seeks a personalized approach to each client. Companies can develop special conditions or offer personalized discounts, all to turn their clients into regular customers, as finding them in the B2B segment is quite difficult and requires a lot of effort. Therefore, it is more profitable for a B2B business to retain existing customers than to search for new ones.

Proper communication with other companies is crucial for successful B2B business management. To ensure this, the business must create its own B2B portal. A B2B portal is a company website where customers can familiarize themselves with products and cooperation conditions, as well as easily place an order. The information on the website is promptly updated thanks to integrations with accounting systems, so customers will always receive the most up-to-date information without the need for clarification. It is also important that the website automates a number of processes and frees up company employees from a range of duties. Managers no longer have to manually process every application, communicate with customers, and explain a whole range of nuances. Customers can choose the necessary product or service and make a transaction themselves.

On the Horoshop platform, you can create your own B2B portal with all the necessary functions for wholesale trade, such as wholesale prices for quantities, optional display of stock availability, the ability to create personalized price lists, and many other tools. Most of the functions are available to platform customers through an API, allowing you to manage your business by integrating the website and accounting systems.

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