What are the differences between consumer products and B2B products?
Business to Consumer is another model which is abbreviated as B2C, where the business sells its goods and services to the final consumer. Those companies whose products and services are consumed directly by the end user are known as B2C companies. There are many important differences between B2B and B2C, which you can see in the article below.
Content: B2B Vs B2C
Comparison ChartBasis for ComparisonB2BB2CMeaningThe selling of goods and services between two business entities is known as Business to Business or B2B.The transaction in which business sells the goods and services to the consumer is called Business to Consumer or B2C.CustomerCompanyEnd userFocus onRelationshipProductQuantity of merchandiseLargeSmallRelationshipSupplier - Manufacturer
Manufacturer - Wholesaler
Wholesaler - RetailerRetailer - ConsumerRelationship horizonLong termShort termBuying and Selling cycleLengthyShortBuying DecisionPlanned and Logical, based on needs.Emotional, based on want and desire.Creation of Brand ValueTrust and Mutual RelationshipAdvertising and Promotion
Definition of B2B
A commercial transaction that takes place between two business organizations is known a Business to Business like supplier and manufacturer, manufacturer and wholesaler, wholesaler and retailer.
The decision making is quite difficult due to voluminous transactions. In B2B, the businesses are oriented towards making a good personal relationship with the other party to the transaction, as the size of the target market is small in size their major objective is to make customers from prospects.
For understanding B2B marketing, we will take an example of Shoe, How they come to the showroom and reach us? The leather, go through various levels to become a footwear. First of all the merchants will acquire raw material from the suppliers, after that cutting and machining is done, which is followed the making of the shoe and finally the finishing is performed on it. Then they are packed in boxes and distributed to the showrooms, which are available for us to buy. In this example, there are a series of transactions that occur for making a single shoe. B2B starts when the raw material is purchased and ends till it is distributed to the showroom.
Definition of B2C
The transaction, which exists between business and the final consumer is known as B2C. This may include any sales process where selling of goods and rendering of services by the company is done directly to the end user.
The decision making in B2C is quite easy because the transaction is a single step, and does not involve many persons. The target market is very large and there are millions of consumers, so the major try to make buyers from shoppers. Nowadays, the consumers can purchase goods online too, which is also a business to consumer transactions where a consumer can select the product online and order it, the company will deliver it at the residence of the consumer.
For example, Purchasing clothes from a mall, having pizza in Domino’s, pay for internet connection, taking beauty treatment from a parlor, etc.
Key Differences Between B2B and B2C
The points given below clarifies the difference between B2B and B2C:
The two business models cover the complete business process when they bring together. B2B is mainly for those entities which sell their products to other business entities by adding value. If we talk about B2C, it is for those entities which are engaged in the sale of their products to the final consumer who is not going to resell them.
B2B e-commerce websites offer many ways to reach agents, whereas B2C sites prioritize self-service. E-commerce leaders must build their websites to meet their customers' needs.
Published: 24 Oct 2022
Many consumers buy their everyday products, such as clothing and makeup, from e-commerce websites. However, businesses also make online purchases.
The B2B and B2C e-commerce markets have seen significant growth since the early 2000s because they offer customers convenience and can cut costs for sellers. Amid the COVID-19 pandemic, e-commerce growth accelerated in response to social distancing restrictions. Given its benefits, many organizations -- both B2B and B2C -- have an e-commerce component. However, different business models require different e-commerce strategies.
Explore key differences between B2B and B2C e-commerce, which include customers, marketing, support, pricing, order sizes and website design.
What is B2B e-commerce?
B2B stands for business-to-business. B2B e-commerce refers to a business model that lets organizations sell products and services to other businesses over the internet. For example, Micron Technology -- which sells computer chips to smartphone manufacturers, such as Apple -- is a B2B company. Business decision-makers from companies like Apple can visit Micron's website and purchase products in large quantities. B2B e-commerce organizations sell products in bulk more often than B2C organizations.
What is B2C e-commerce?
B2C stands for business-to-consumer. B2C e-commerce refers to a business model that lets organizations sell products and services to end consumers over the internet. Walmart is an example of a B2C company with in-person and e-commerce components. Unlike B2B companies, like Micron Technology, Walmart sells most of its products to individuals, not businesses.
6 differences between B2B and B2C e-commerce
B2B and B2C e-commerce websites let customers purchase products and services over the internet. However, they have different customer bases and use different marketing approaches, support strategies, pricing options, order sizes and website designs.
B2B organizations sell their products and services to businesses, whereas B2C organizations serve individual consumers. Businesses and consumers demonstrate different purchasing behavior because organizations make much larger purchases than consumers. For instance, an insurance company may order hundreds of laptop computers at once to equip its remote contact center agents. B2C customers, on the other hand, tend to make small, frequent purchases, which may include clothing for themselves or toys for their children.
Additionally, the sales process can take longer in B2B than B2C because business purchases involve many players. Organizations make purchases less frequently than consumers, but those purchases involve large investments that affect hundreds of people. For instance, if a pharmaceutical company buys new content management software, that purchase affects employees in IT, marketing, finance graphic design, sales and HR. Leaders from each department may also play a role in the sales process.
2. Marketing content
Businesses make larger purchases than consumers, so they tend to engage in heavier product research. B2B e-commerce marketing appeals to logic and includes detailed product information, such as buyer guides, specs, FAQ pages, blogs and video demonstrations. B2C marketing primarily wants to get people's attention, and people often purchase products spontaneously. B2C marketing content often involves fun, flashy and creative messaging designed to resonate with personal desires.
Additionally, B2B marketing seeks to build strong relationships between businesses and their clients. Its content often includes click-to-call buttons or live chat windows that connect shoppers with sales representatives. B2B shoppers make high-value purchases and often stick with one vendor for other purchases, so B2B organizations put significant effort into their individual customer relationships.
B2C marketing content focuses more on facilitating speedy checkouts than personal relationships. However, these organizations increasingly rely on customer data to create personalized discounts and product recommendations.
B2B e-commerce organizations require more elaborate support teams than B2C because they have more complex products and business relations. Support may include agents, community forums, 24/7 chatbots, FAQ pages, product demos and troubleshooting videos. B2B customers typically have a high customer lifetime value (CLV), and organizations invest in strong support infrastructures to quickly solve their complex issues.
B2C e-commerce organizations also require customer support teams, but their customers often ask simpler questions. Chatbots and FAQ pages can handle common inquiries, such as those related to return policies, and agents don't always need extensive product knowledge.
B2B customers consider their purchases with teams of people over long periods of time, whereas consumers may buy products spontaneously.
B2B organizations typically offer negotiable pricing, whereas B2C retailers have fixed prices. Given the high CLV of B2B customers, B2B organizations focus on a long-term sales cycle. For example, if a growing startup company with a small budget wants to purchase CRM software from a vendor, the vendor may want to offer a lower price if it expects the company to significantly grow in the coming years. As the startup grows, the software vendor can expect to sell it more product licenses in the future.
Also, B2B organizations may offer negotiable pricing to account for their products' complex nature. For example, many B2B software vendors offer highly customizable products that involve different microservices and deployment requirements for different customers. This complexity can cause prices to vary between customers.
B2C pricing, on the other hand, usually remains fixed. Consumer products tend to be less complex and customizable than B2B products, so sellers don't need to tailor prices to unique product customizations. However, retailers often give discounts and personalized offers, such as birthday coupons, to boost customer engagement.
5. Order size
Although B2B e-commerce organizations have fewer customers than B2C companies, those customers make much larger purchases. B2B e-commerce organizations sell in bulk, which requires them to set minimum pricing levels. For instance, a lumbar wholesaler may require customers to buy at least $5,000 worth of wood, whereas B2C retailers, like Home Depot, have no such minimum.
In fact, B2C e-commerce organizations may put product maximum limits on certain high-demand items. For instance, a retailer may limit how many gaming consoles a customer can buy during the holiday season. Because they serve high volumes of people, B2C retailers want to avoid a handful of customers buying up all their inventory.
6. Website design
Given their different customers bases, B2B and B2C e-commerce websites often have different designs. B2B sites typically offer simple and clean homepages because bright and busy B2C marketing techniques don't appeal as much to corporate audiences. B2C retailers, on the other hand, often make their e-commerce homepages creative, loud and flashy to get users' attention.
B2B websites also offer extensive product information, such as detailed demonstration videos, blogs and specs, to help customers complete their research processes. B2C e-commerce sites also include product information, but they may limit it to basic descriptions and attributes, like size, color and dimensions.
B2B e-commerce websites use live chat windows and click-to-call buttons across their product pages so customers can easily reach sales and support representatives to discuss product features, plans and pricing options. These live interactions can help B2B organizations build relationships with their customers. Conversely, B2C website designs prioritize self-service and quick checkout processes.
Dig Deeper on E-Commerce
Part of: Getting started with e-commerce Article 1 of 5 Up Next B2B vs. B2C e-commerce: What's the difference? B2B e-commerce websites offer many ways to reach agents, whereas B2C sites prioritize self-service. E-commerce leaders must build their websites to meet their customers' needs. What IT skills are required for e-commerce? While e-commerce involves a lot of marketing and sales, it also requires IT expertise to keep platforms running. Explore seven technical skills needed for e-commerce platforms. Key steps for an e-commerce planning process E-commerce can help organizations grow their business online, but the venture brings the most success if planned properly. These steps can start organizations on the right path. How to make a successful e-commerce website E-commerce sites can offer a high ROI because they require less investment than physical stores. However, they may fail to generate revenue without proper design and marketing. Top 10 e-commerce software companies E-commerce platforms can help organizations design and operate engaging online shops. Companies like SAP have offerings for large enterprises, whereas GoDaddy and Wix target SMBs.
Part of: Getting started with e-commerce
Article 1 of 5
B2B vs. B2C e-commerce: What's the difference?
What IT skills are required for e-commerce?
While e-commerce involves a lot of marketing and sales, it also requires IT expertise to keep platforms running. Explore seven technical skills needed for e-commerce platforms.
Key steps for an e-commerce planning process
E-commerce can help organizations grow their business online, but the venture brings the most success if planned properly. These steps can start organizations on the right path.
How to make a successful e-commerce website
E-commerce sites can offer a high ROI because they require less investment than physical stores. However, they may fail to generate revenue without proper design and marketing.
Top 10 e-commerce software companies
E-commerce platforms can help organizations design and operate engaging online shops. Companies like SAP have offerings for large enterprises, whereas GoDaddy and Wix target SMBs.