Difference between B2B and B2C

Key difference: B2B and B2C are e-commerce business strategies. B2B is meant for Business-to-Business, wherein the business transaction takes place between businesses and B2C is meant for Business-to-Consumer, where the transactions of products take place between the businesses and consumers.

The terms B2B and B2C are the selling processes of goods and services. While B2B products and services are sold from one company to another, and in B2C, the products are sold from a company to the end user.

B2B (Business-to-Business) are the e-commerce and business strategies, wherein the business or transaction takes place between the manufacturers and wholesalers or between wholesalers and retailers. Here, the entire business transaction takes place between the main business leaders. They are large transactions, as they involve the selling of bulk quantity of items to the businesses. They are e-commerce strategies, in which the marketing of products are involved from one business person to other. In a typical supply chain, there will be many B2B transactions involving sub-components or raw materials. B2B is also referred to the context of communication and collaboration. When the transaction takes place amongst the employees it is referred to as “B2B” Communication. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles.

B2C (Business-to-Consumer) are the transactions which takes place between the businesses and the end-users. The companies who sell the products and goods directly to the consumers can be referred to as the B2C companies. In 1990s, this term was basically used for the online retailers and for the companies that sold the products and services to consumers through the Internet. Now, B2C has become a famous retailing part of e-commerce on the Internet. These are the electronic activities that concentrate on the basic retail transactions, which take place between the retailers and direct consumers. It’s a retail trade method among the seller or retailer and the end-user. The other phrases associated with B2C transactions can be referred to as "bricks-and-clicks," "click-and-mortar," and "clicks-and-bricks." This transactions offer products and services from the direct business manufacturers, retailers and traders to the direct users or consumers. For example: A direct mail marketing service.

B2B and B2C are further interrelated strategies to each other in the business commerce.

Comparison between B2B and B2C:

 

B2B

B2C

According to Investopedia:

B2B refers to business that is conducted between companies, rather than between a company and individual consumers. It is a typical supply chain, which involves multiple business to business transactions, as companies purchase components and other raw materials for use in its manufacturing processes.

B2C is business or transactions that are conducted directly between a company and consumers, who are the end-users of its products or services.

Short forms of

Business-to-Business

Business-to-Consumer

Products sold to

Here the products and services are sold from one company to another.

Here the products and services are sold from a company to the end user.

Type of Buyers

The buyers are the other companies or businesses.

The buyers are the end consumers or users.

Type of transactions

These types of transactions are larger in nature as they involve bulk quantity of goods and services.

These are short transactions, taking place between the consumer and the retailers, manufactures or traders.

Risk involvement

Buying B2B products is much riskier as compared to B2C.

Buying B2C products is not that riskier as compared to B2B as there is little involvement of money and products.

Buyers

Here the buyers are in committees in order to purchase in bulk from a single Business brand.

Here the buyer purchases from the consumer brands as an individual.

Relationships 

Companies seek long term relationships as any experiment with a different brand will have an impact on the entire business.

Here the relationship depends on the type of transactions taking place. Consumers have to be made satisfied of the respective brand quality, as only person to person or person to brand transactions takes place. The buyer may also ask for prototypes, samples and mockups.

Examples

An automobile manufacturer conducts a number of deals like purchasing tires and rubber hoses for his or her vehicles.

A pet sitting business, a home staging business, and a gourmet pet’s food business.

Image Courtesy: integravalues.com, flexy.com.br

Most Searched Non-Alcoholic Drinks Most Searched in Games and Recreation
Most Searched in Sports Most Searched in Education and References
Agent vs Broker
North America vs South America
Santa Claus vs St. Nikholas
Micromax A116 vs Karbonn Titanium S5

Add new comment

Plain text

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.