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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteB2B means “business-to-business”: a transaction in which one business sells to or otherwise transacts with another business. It describes who the parties are—not whether the transaction is wholesale, takes place online, or uses a particular payment method. A company selling components to a retailer and a wholesaler selling supplies to a contractor are both examples of B2B activity.
What is a B2B transaction?
A B2B transaction is a commercial exchange between businesses. One business may sell goods or services to another, or an intermediary may help the two businesses arrange a sale. The businesses involved could be manufacturers, wholesalers, retailers, contractors, or other organizations.
The U.S. Census Bureau uses B2B and B2C as terms in its E-Stats Glossary. B2C means “business-to-consumer”: a business sells to an individual consumer. The key distinction is the buyer’s role in the transaction, not the product or the way the sale is completed.
Examples of B2B sales and arrangements
These examples illustrate categories described in U.S. Census Bureau wholesale materials; they are not an exhaustive list of business-to-business activity.
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- Manufacturer to retailer: A manufacturer sells components or finished goods to a retailer, which may then sell them to consumers.
- Wholesaler to contractor: A wholesaler sells materials or supplies to a contractor for use in the contractor’s business.
- Business-to-business electronic market: An online market helps businesses find counterparties or arrange purchases and sales.
The Census distinguishes a merchant wholesaler, which sells goods on its own account, from agents, brokers, and electronic markets that arrange sales or purchases for others, commonly for a fee or commission. The distinction is whether the business owns and sells the goods or facilitates a transaction between other parties. See the Bureau’s Annual Wholesale Trade Survey FAQs and its Wholesale Economic Census FAQ, which covers classifications in the 2022 Economic Census context.
Is B2B the same as ecommerce?
No. B2B identifies the parties to a transaction; ecommerce identifies how an order is placed or sale terms are negotiated. A B2B transaction can be arranged online or offline, and an online transaction is not necessarily B2B if the buyer is a consumer.
For its statistical definition, the U.S. Census Bureau counts sales as ecommerce when the buyer places an order or the sale’s price and terms are negotiated through an online system. The payment itself may happen online or offline. As a result, a business-to-business order placed online and paid later by check or bank transfer can still qualify as ecommerce under the Census definition. The Bureau’s E-Stats FAQs provide the definition; it is a statistical description, not a universal legal definition of ecommerce.
What is the difference between B2B and EDI?
B2B describes a business-to-business relationship or transaction. EDI, or Electronic Data Interchange, is a way organizations exchange standardized electronic documents automatically between their computer applications. EDI can be used to support B2B transactions, but the terms are not interchangeable: one describes the parties, while the other describes a document-exchange method.
The U.S. Census Bureau’s Monthly Wholesale Trade: Definitions describes EDI as an automated exchange of standardized electronic documents between organizations’ applications. EDI is therefore one possible channel for business transactions, not a requirement for a transaction to be B2B.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to tell whether a transaction is B2B
- Identify the buyer and seller. If the commercial counterparties are businesses, the transaction is B2B. If a business sells to an individual consumer, it is B2C.
- Separate the parties from the channel. Note whether the order or negotiation happens online or offline; that does not change who is transacting.
- Check what an intermediary does. A merchant wholesaler sells on its own account. An agent, broker, or electronic market arranges a transaction for others.
- Consider the payment separately. Payment method does not determine whether the transaction is B2B, and under the Census ecommerce definition, payment need not be online for an online order or negotiation to count as ecommerce.
These terms explain business relationships and transaction channels. They do not, by themselves, determine contract obligations, taxes, credit terms, procurement rules, or payment terms.
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