Negotiation is the back-and-forth in which a buyer and seller propose changes to price, quantity, or terms until they agree. A counteroffer is a revised proposal that answers the previous offer and replaces its terms. Once you send a counteroffer, the earlier quote is no longer on the table, and the deal moves forward only if one side accepts the current version.
How it works
A typical exchange starts with a quote. The buyer responds asking for a lower unit price, a larger volume discount, net 30 payment, or free freight. That response is a counteroffer, and it changes what is being agreed to. The seller can accept it, reject it, or send a counteroffer of their own. Each new counteroffer resets the terms, so only the latest proposal is live. Agreement happens when one party accepts the standing offer without changes.
Why it matters
In B2B, price is rarely fixed. Buyers expect to negotiate on volume, contract length, and terms, and the version history of that conversation is where margin is won or lost. If you cannot see which quote is current, you risk honoring stale numbers or losing track of what you actually promised. Keeping one clear source of truth for the active terms protects both margin and trust.
Example
You quote 500 units at 4.00 each. The buyer counters at 3.60 with net 45 payment. You counter at 3.75 with net 30. The buyer accepts, and 3.75 net 30 becomes the binding deal. Earlier numbers are dead the moment they are replaced.
On Shopify, this matters at the point where a quote becomes an order. In ShopQuotes, the accepted terms convert into a real draft order the buyer pays through native checkout, so the price they approve is the price they pay. See the B2B quoting glossary or pricing for more.