B2B vs. B2C
B2B and B2C describe who your customer is, and almost everything else about a commerce business follows from that answer: how big orders are, how long the sale takes, how prices are set, and how money is collected. Here’s the practical breakdown, including how each model runs recurring revenue.
B2B (business-to-business) means selling to other companies; B2C (business-to-consumer) means selling directly to individual shoppers — the two models differ in buyer, order size, sales cycle, pricing, and payment terms.
The core differences at a glance
Neither model is “better” — they’re different machines:
| Dimension | B2B | B2C |
|---|---|---|
| Buyer | A company (often several stakeholders) | An individual |
| Order value | High, often bulk or contract-based | Low, single items or small baskets |
| Sales cycle | Days to months; quotes and negotiation | Minutes; impulse and emotion play a role |
| Pricing | Negotiated, tiered, volume-based, often hidden | Fixed, public |
| Payment | Invoices, net-30/60 terms, ACH/wire | Card or wallet, paid at checkout |
| Relationship | Account-managed, contract renewals | Brand-and-retention driven |
B2B vs. B2C subscriptions
Both models run recurring revenue, but it looks different in each:
B2C subscriptions are the familiar subscribe-and-save pattern: an individual signs up at checkout, pays by card each cycle, and manages everything through a self-service portal. Churn management — dunning, skips, win-backs — is the operational heart.
B2B subscriptions are usually replenishment or contract-based: a salon reordering supplies monthly, a café on a standing coffee order, an office on a snack plan. Orders are bigger, cadences are negotiated, payment often runs on invoiced terms rather than a stored card, and one buyer can represent dozens of end users.
On Shopify, the same subscription infrastructure can serve both: wholesale customers on scheduled replenishment orders are technically subscriptions with bigger carts and different payment terms.
Hybrids: B2B2C and selling both ways
Many stores are both at once — a coffee roaster selling bags to consumers (DTC) and pallets to cafés (B2B) from the same catalog. The usual pattern is one storefront for B2C plus a gated wholesale channel with negotiated prices for B2B.
B2B2C describes selling to a business that serves consumers under its own relationship — a brand supplying a subscription box curator, or a manufacturer whose product ships inside another company’s bundle. The distinction matters mainly for who owns the customer data and the retention relationship.
Frequently asked questions
What do B2B and B2C stand for?
Business-to-business and business-to-consumer. B2B companies sell to other companies; B2C companies sell directly to individual shoppers.
Can a store be both B2B and B2C?
Yes, and many are — typically a public B2C storefront plus a gated wholesale channel with negotiated pricing, volume rules, and invoice payment for business buyers.
How do B2B subscriptions differ from B2C subscriptions?
B2B recurring orders are larger, cadences are negotiated per account, and payment often runs on invoice terms (net-30/60) instead of a card charged at each cycle. B2C subscriptions are self-serve, card-based, and managed through a customer portal.
Related terms
- DTC / D2CDTC (direct-to-consumer, also written D2C) is a business model in which a brand sells directly to end customers through its own channels — typically its own online store — instead of selling through retailers, wholesalers, or marketplaces.
- Subscription Business ModelA subscription business model sells ongoing access to a product or service for a recurring fee on a fixed schedule, generating predictable recurring revenue instead of one-time sales.
- Recurring Revenue ModelA recurring revenue model is a business model in which customers pay on a repeating schedule — weekly, monthly, or yearly — for ongoing access to a product or service, producing predictable income instead of one-time sales.
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