Concept of B2B Model: Types, Examples, and E-Commerce

Olivia

Published on 19 Aug 2025

Understanding Business-to-Business (B2B)

In a normal supply chain, corporations purchase components and products such as other raw materials for use in manufacturing operations, which leads to business-to-business interactions. Individuals can then purchase finished goods through business-to-consumer interactions.

Business-to-business refers to ways for connecting personnel from different organisations, such as through social media, in the context of communication. B2B communication refers to communication between employees from two or more firms.

B2B E-Commerce

Late in 2018, Forrester estimated that the B2B e-commerce market had reached $1.134 trillion, up from $954 billion in its 2017 prediction. That’s almost 12% of the overall $9 trillion in B2B sales in the United States for the year. By 2023, they predict this number to rise to 17%.

Businesses can use the internet to learn about products and services while also laying the basis for future business-to-business interactions.

Websites allow potential customers to learn more about a company’s products and services and make contact.
Businesses can browse for items and services on online product and supplier exchange websites and commence procurement through e-procurement interfaces.
B2B transactions are also facilitated by specialised internet directories that provide information about specific industries, companies, and the products and services they supply.

Special Considerations

To be successful, business-to-business transactions necessitate forethought.

Account management personnel at a corporation are responsible for establishing business client relationships in such transactions.
For effective transactions, business-to-business connections must also be cultivated, generally through professional meetings prior to sales.
Traditional marketing techniques can also assist organisations in connecting with their clients.

This endeavour is aided by trade periodicals, which provide businesses with opportunities to advertise in print and online. The participation of a company at conferences and trade exhibitions raises awareness of the products and services it offers to other companies.

Example of Business-to-Business (B2B)

For manufacturing companies, business-to-business transactions and huge corporate accounts are usual.

Technology Sector: Samsung, for example, is one of Apple’s most important suppliers in the iPhone’s production. Apple also has business-to-business agreements with Intel, Panasonic, and Micron Technology, among others.
Automobile Industry: Many vehicle components are produced independently, and automakers purchase them in order to assemble cars. Tires, batteries, electronics, hoses, and door locks, for example, are typically manufactured by a number of companies and sold directly to automakers.
Service Providers: Property management, cleaning, and industrial clean-up companies frequently market their services to other businesses rather than individual consumers.

B2B Model – How Businesses Profit from Each Other

Customers and businesses are often thought to be diametrically opposed, with the customer serving as the consumer and the business serving as the supplier.

The B2B Business model challenges these preconceptions by introducing us to a paradigm in which businesses function as customers as well.

B2B refers to a business model in which goods and services are exchanged between two or more companies.
In these types of arrangements, the consumer is usually not involved and only comes into play later.
The trade of raw materials accounts for a significant portion of these interactions.

📌 Example: Apple obtains materials from Samsung in order to manufacture a new iPhone. Despite the rivalry, there is a B2B relationship that benefits both parties. Both businesses profit, and they have comparable negotiation strength.

Diversifications in B2B Business Models

B2B can be classified into three main categories:

A) Supplier-Centric Model

Suppliers create a marketplace and sell tailored solutions to a variety of businesses. Most price their services based on the buyer’s requirements.

B) Buyer-Centric Model

Prevalent among large corporations with high-volume purchases. The corporation creates an online portal to take quotations from sellers and selects the most profitable offer.

C) Intermediary-Centric Model

Intermediaries provide a common platform for buyers and sellers to meet and interact. They profit by maintaining databases of buyers and sellers and facilitating communication or transactions.

B2B Business Model Example: Apple & Samsung

Apple and Samsung working together on iPhone production is a prime B2B example.

Samsung: Provides processor chips.
Apple: Pays a hefty sum for each processor delivered.

Despite being competitors, both companies stick with the B2B model because it benefits them mutually.

Four Basic B2B Models for Trading Partner Connections

Direct Connection B2B ModelBusinesses connect directly with each trading partner. Works best when the community is small (<100). Complexity grows as more partners/protocols are added. Sometimes called the “spaghetti” or “spider” model.
Network B2B ModelBusinesses connect via a Service Provider (formerly called VAN). Simplifies communication, reduces complexity, and ensures security. Service providers charge transaction fees.
Hybrid B2B ModelMix of direct and network models. Businesses connect directly with high-volume partners while using service providers for smaller/other partners.
Managed B2B ModelBusinesses outsource the entire B2B process to a Service Provider. Reduces expenses, complexity, and resource requirements. The provider handles mapping, translation, technical support, and delivery.

Decision-Making Process in B2B

The decision-making process is often more complicated than in B2C.

Idea may originate with a sales agent.
Sales manager forwards it for approval.
Finance, legal, or directors may also need to sign off for large orders.

Unlike B2C, B2B companies often sell raw materials, services, or components that are critical for production.

📌 Example: Car manufacturers depend on parts companies to complete car assembly. They may also purchase software to automate processes.

B2B E-Commerce Highlights

B2B e-commerce has been growing since the advent of the internet.
More companies are moving online due to both benefits and necessity.
Today, e-commerce is a basic requirement for survival in most industries.

B2B Categories

The top three categories of B2B commerce are:

Web DevelopmentDemand for digital transformation, SEO, web design, site-building software, and databases.
Supply and Procurement ExchangesCompanies pay for access to portals with supply data, price listings, and industry forums.
IntermediariesProvide specialized industry data, often acting as middlemen between providers and seekers.