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What is B2B sales?

While consumer sales often grab the spotlight, the true giant that steers the global economy is B2B sales. The global B2B ecommerce market is valued at over $20.4 trillion, five times larger than B2C, and is rapidly growing every year. So, what defines B2B sales and how does it differ from its consumer-oriented counterpart?

What is B2B sales: Decoding the acronym

B2B, short for business-to-business, refers to the sale of goods and services between two companies. Unlike B2C (business-to-consumer) sales, which target individual buyers, B2B transactions involve complex decision-making processes often influenced by multiple stakeholders within the buying organisation.

Think of it like this: Instead of selling a single pair of shoes to a customer, a B2B business may provide an entire fleet of safety boots to a construction company. The stakes are higher, the quantities larger, and the relationships deeper.

A closer look into the B2B sales process

Now that we’ve established what B2B sales are, let’s explore the key characteristics that set them apart from B2C:

Higher transaction values: B2B sales often involve significantly larger transaction amounts than B2C. The scale and scope of B2B transactions, which can include bulk orders, long-term contracts, and comprehensive service agreements, contribute to their higher values. This aspect underscores the importance of strategic pricing and value demonstration in B2B negotiations.

Longer sales cycles: The $20.4 trillion, five times larger than B2C can stretch from weeks to months or even years. This is not just because of the size of the deals but also due to the intricate web of decision-makers involved, where the end-user may not always be the decision-maker. In this dynamic, forging trust and nurturing solid relationships is vital to closing deals.

Net terms: B2B payments typically operate on net terms as opposed to upfront payments in B2C, meaning the buyer has a set timeframe (typically 30, 60, or 90 days) to pay the invoice after receiving the goods or services. This requires careful creditworthiness assessment and potential implementation of credit control measures to ensure timely payments.

Complex decision-making: B2B purchases often involve rigorous evaluations, technical due diligence, and approval from various departments within the buying organisation – especially in enterprise sales. Understanding these internal dynamics is essential for tailoring the right sales approach.

Focus on ROI: Businesses primarily invest in solutions that demonstrate a clear return on investment (ROI) and are less prone to impulse purchasing like is typical in B2C. Highlighting the value proposition and quantifiable benefits of a product offering is paramount.

Relationship building: B2B sales thrive on fostering long-term relationships with key decision-makers. Understanding their needs, challenges, and industry trends allows businesses to provide solutions that go beyond a simple product or service.

Unlocking B2B sales growth with Mondu

Navigating the inherent complexities in B2B sales requires flexibility and innovation to stay ahead. Long sales cycles and the need to offer extended payment terms pose substantial cash flow challenges and risk exposure for businesses.

Mondu’s Buy Now, Pay Later solution equips B2B businesses with the tools to tackle these obstacles, enabling you to provide customers with flexible payment options that accelerate purchasing decisions, increase order sizes, and boost cash flow – all while minimising your risk.

Interested in learning more?

Contact us at or request a demo directly on our website.

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