what is b2b commerce

B2B commerce, or business-to-business electronic commerce, is the sale of goods or services between businesses via an online sales portal. It is used to improve the efficiency and effectiveness of a companys sales efforts by receiving orders digitally, reducing overhead costs. B2B commerce differs from B2C commerce, which is business-to-consumer electronic commerce where a business sells goods or services directly to a consumer. B2B buyers and retail consumers have different purchasing needs, such as buying impulsively vs. buying rationally, single decision-maker vs. multiple decision-makers, short-term customer relationship vs. long-term customer relationship, set fixed prices vs. diverse prices, and pre-delivery payment vs. post-delivery payment. B2B commerce transactions can take place between manufacturers, wholesalers, distributors, and other types of B2B sellers. The B2B ecommerce space is growing fast, and buyers have high expectations. The global B2B ecommerce market was valued at $14.9 trillion in 2020, over five times that of the B2C market.