B2B terminology

B2B commerce has specialized terminology and can have complex processes, so it might be challenging for new merchants to get started with B2B.

In this article you can find a list of common B2B and wholesale terminology. Review the following list of definitions and terms to learn more about B2B.

B2B (business-to-business)

B2B is a business model or commercial transaction between two businesses instead of individual consumers. B2B can be conducted between different types of businesses, such as manufacturers, wholesalers, and retailers.

For example, a pen store retailer buys pens directly from the pen manufacturer, and then sells pens to customers in their store.

Alternative term: Wholesale.

Shopify B2B

Shopify B2B is a suite of native features that allows you to sell business-to-business (B2B) through the Shopify admin and online store. You can set up B2B catalogs for specific customers, configure different types of payment terms, and connect multiple customers and locations to a single company.

For more information, refer to Shopify B2B.

B2B access email

When you assign a customer to a company or create a new B2B customer profile, you can send a B2B access email to invite them to start placing B2B orders in your online store. This notification is optional and can be customized.

For more information, refer to Customizing and sending the B2B access email notification.

B2B catalog

B2B catalogs are a set of products that you can choose to sell to B2B companies and customize the buying experience for your wholesale customers. With catalogs, you can control the availability of products for your wholesale customers and include all products or specific products in a catalog.

Alternative terms: Wholesale product catalog, B2B ecommerce catalog, price list.

For more information, refer to Catalogs and pricing in B2B.

B2B checkout

The B2B checkout provides B2B customers with a customized experience based on their login information. B2B customers can log in and have all of their company information brought into the checkout automatically.

For more information, refer to Checkout, orders, and draft orders in B2B.

B2B customer

B2B customer represents the individual that purchases on behalf of a business in a B2B transaction. You can add your B2B customers to a company or a company location in Shopify.

Alternative term: Wholesale customer.

For more information, refer to Creating and managing B2B company contacts using customers.

B2B customer login

B2B customers log in to your store to access B2B-specific information, such as products and pricing, or to place B2B orders. This ensures only authorized customers can access your wholesale offerings. To login as a B2B customer, the customer needs to be set up and associated with one or more company locations in your Shopify admin

Alternative term: Customer accounts.

For more information, refer to Setting up B2B customer login and accounts.

B2B draft order

Orders that customers send directly to you by phone or email instead of through the online store can be created as draft orders. If the draft order has a B2B customer and a company location assigned to it, then the prices, payment terms, and checkout options automatically reflect the settings for that company. You can create a draft order with payment terms and deposit requirements. When a payment is captured partially or fully on a draft order, it is automatically converted to an order.

For more information, refer to Creating B2B orders using draft orders.

B2B order

A B2B order is an order that is processed through Shopify of a blended or dedicated storefront. A B2B order is different from a D2C order in a number of ways. A B2B order needs to be associated with a company and B2B customer to be considered a B2B order.

For more information, refer to Checkout, orders, and draft orders in B2B.

Blended store

A blended store is a single Shopify store that's used for both B2B and D2C customers. Using a blended store lets you manage all your operations from a single Shopify admin without the need to differentiate between B2B and D2C customers.

For more information, refer to Blended store for a B2B business.

Company

A company is the parent organization for one or more company locations. Companies can have multiple locations. You must set up your B2B customers as companies to use B2B on Shopify.

For more information, refer to Creating and managing B2B customers using companies.

Company account requests

B2B customers can request access to your online store using company account requests. You need to install the Shopify Forms app, create and customize a form for wholesale customers to fill out, and then add a popup or inline form to your online store. When a customer submits the form, a company, a company location, and a customer are automatically created in your Shopify admin. You can review the request and choose whether to approve the company to buy B2B from your business.

For more information, refer to Allowing new B2B customers to request access to your store.

Company location

A company location is the business that you're selling to in a B2B transaction. Each company location can have separate catalogs, payment terms, checkout options, and shipping addresses. When a B2B customer logs in to your store, they choose the location that they're purchasing for and are offered the prices, payment terms, and checkout that you assigned to that company location.

For more information, refer to Creating and managing B2B customers using companies.

Company staff permissions

Staff permissions support any type of sales staff. The two most common types of sales staff for B2B businesses are sales managers and sales representatives:

• Sales managers: Staff who control which sales representatives work with specific company locations. They can also be store admins.
• Sales representatives: Staff who can access only the company locations and records they're assigned to. You can also give them permission to edit or create companies and company locations.

You can control the level of permissions each member of your sales staff has by creating and assigning user roles with any combination of permissions, including Companies permissions.

For more information, refer to Setting up sales staff to access B2B orders and data.

Credit card vaulting

B2B customers can select a checkbox to vault their credit card information at checkout. They can also log in to customer accounts to add a vaulted card to a company location. By vaulting a credit card, the customer gives permission for that card to be used for the current order and future orders.

For more information, refer to Setting up credit card vaulting for B2B.

Dedicated store

A dedicated store is a separate Shopify store that's used only for B2B customers. All settings and features automatically apply only to B2B customers. Using a dedicated store allows you to segment inventory and business data between your B2B and D2C stores.

For more information, refer to Dedicated store for a B2B business.

Deposit

If you want to collect partial payment for an order upfront and the rest at a later date, then you can require a deposit as part of the payment term. B2B customers need to pay the deposit amount when they place an order at checkout. Deposits work with orders and draft orders. Deposits can be paid with a credit card or a manual payment method.

For more information, refer to Adding deposits to payment terms for B2B.

D2C (direct-to-consumer)

D2C is a business model or commercial transaction between a business and a consumer. D2C business sells products or services directly to customers without having to rely on middlemen. For example, a fountain pen manufacturer sells fountain pens directly to customers on their online store.

Alternative term: DTC

Headless commerce

Headless commerce is a custom storefront that you can build for your B2B business using Hydrogen and Oxygen.

For more information, refer to Headless with B2B.

Alternative term: Custom storefront.

One-time shipping address

The company location address is fixed by default, so that customers can use only that address at checkout. To provide your customers with more flexibility, you can activate the option to ship to any address.

When you activate this setting, customers can enter a one-time shipping address during checkout that is different from the company location shipping address.

For more information, refer to Managing checkout settings in B2B.

Order submission

Order submission is a setting that lets you choose how you want your B2B orders to be submitted in your Shopify admin. B2B orders can be submitted as orders or draft orders. If you want to review orders before they're approved, then you can require that customers submit their orders as drafts before you accept them.

For more information, refer to Managing checkout settings in B2B.

Partial payments

Partial payment is a split payment for an order. You can collect and record multiple partial payments for orders with payment terms in your Shopify admin. With partial payments you can offer flexible payment options to your customers, let your customers pay with multiple payment methods on a single order, and collect deposits or upfront payments.

For more information, refer to Collecting and recording partial payments.

Payment terms

Payment terms define how long a company has to pay for an order or for a draft order for a B2B customer. You can set up payment terms by a specific date or due on fulfillment.

For more information, refer to Setting up payment terms in B2B.

Personal order

A personal order is a D2C (direct-to-consumer) order. When a customer tries to create a personal order using an email address that is associated with a B2B company, then they can't check out. Customers need to use an alternative email address for personal orders.

Purchase order number

A purchase order lists the products, prices, and quantities for an order that a business places with a supplier. If a company submits a purchase order with you outside of your Shopify store, such as by email or on the phone, then you can create a draft order for their purchase.

Alternative term: PO number.

Resale certificate

A resale certificate is a signed document that indicates that the purchaser intends to resell the goods. It is usually provided by a retailer to a wholesale dealer. In addition, manufacturers issue resale certificates to suppliers of materials that become incorporated into the products they manufacture.

Alternative terms: Resale exemption certificate.

Quantity rules

Quantity rules are used to sell a product in certain increments or to set a minimum or maximum limit the product can be purchased in at one time.

For more information, refer to Setting up quantity rules and volume pricing in B2B.

Tax exemption

B2B customers might have unique tax exemptions. You can configure tax exemptions for each company location to allow customers to receive the correct tax collection experience, regardless of which jurisdiction they're located in.

For more information, refer to Creating and managing B2B customers using companies.

Volume pricing

Volume pricing is used to offer price breaks to customers who purchase products in larger quantities.

For more information, refer to Setting up quantity rules and volume pricing in B2B.

Wholesale

Wholesale and B2B are used interchangeably within Shopify. This is a selling strategy used by merchants where items are sold in larger quantities at discounted prices often for the purpose of resale.