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.

B2B on Shopify

B2B on Shopify, is a suite of features that let you to sell business-to-business (B2B) through the 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 B2B wholesale.

B2B access email

B2B access email is an email notification that you can send to your B2B customer indicating that they can submit B2B orders on behalf of the company. 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.

For more information, refer to B2B catalogs.

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 and accounts in B2B.

B2B customer

B2B customer is a business that you conduct commerce with. You can add your B2B customers to a company or a company location in Shopify.

Alternative term: Wholesale customer.

For more information, refer to B2B customers.

B2B login is a way to for B2B customers to log in to a B2B store. B2B customers use customer accounts to authenticate and log in to a B2B store. B2B customer can select the company location they're buying on behalf.

Alternative term: Customer accounts.

For more information, refer to Checkout and accounts in B2B.

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 Using draft orders in B2B.

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 Placing an order.

Blended store

A blended store is a store that accepts both B2B and D2C orders. Using a blended store lets you manage all your business data in one place without the need to differentiate between B2B and D2C customers.

For more information, refer to Blended stores.

Company

A company in Shopify represents a business that you sell to with B2B. Companies can have multiple locations.

For more information, refer to B2B companies.

Company account requests

Company customer requests let your customers submit a form on your online store to request access to buy from your business as a B2B company. After your customer submits the form, a company, a company location, and a customer are 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 Company account requests.

Company location

A company location is a location within a company. 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 companies.

Company staff permissions

Permissions determine the level of access that your staff have to your store. Staff might need specific permissions depending on their position. You can grant their sales reps or other staff members limited access to the Shopify admin to take orders and view customer information on behalf of the company locations they’re assigned to.

In addition to restricting access to only assigned company locations, merchants can designate whether sales staff or staff members have permission to do the following actions:

view companies
create and edit companies
assign other staff to companies
delete companies

For more information, refer to Setting up sales staff for B2B.

Credit card vaulting

Credit card vaulting securely saves credit card information so that charges can be made without entering the card information again. When checking out, B2B customers can click a checkbox to vault their credit card information, or they can log into their account to add a vaulted card. After credit card information is vaulted, B2B customers can choose to use the vaulted card on future checkouts.

For more information, refer to Credit card vaulting.

Dedicated store

A dedicated store is a store exclusively used by B2B customers. In a dedicated store, you can create settings specific 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 stores.

Deposit

A deposit is an amount of money that your customer needs to pay when placing an order with payment terms at checkout. For example, if your order value is $100 USD and you set the deposit amount to 10%, then your customer needs to pay $10 USD at checkout and $90 USD later depending on the payment terms that you set.

For more information, refer to Deposits for your payment terms in 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.

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 Requiring orders to be placed as draft orders.

Partial payments

Partial payment is a split payment for an order. You can accept and record multiple partial payments made towards an order. You can offer your B2B customers the flexibility to make deposits, split payments across multiple payment methods, or reconcile underpayments. You can also send invoices to customers for the remaining unpaid amounts.

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

Payment terms

Payment terms is a time period or a condition that you set for a company to pay for an order or for a draft order for a B2B customer. For example, 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 let you to restrict the number of items that your B2B customers can purchase in an order. You can sell a product in certain increments to your B2B customers. Quantity rules can be set for minimum, maximum, and increments that a variant can be ordered in.

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

Tax exemption

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