B2B and B2C: what they are and examples to diversify your business

The B2B and B2C are two of the main types of business. On one hand the B2B (business to business) is the business model in which commercial transactions are carried out between companies. Instead, in the model B2C (business-to-consumer) these transactions take place between businesses —of any size— and consumers.

This very brief explanation that we are going to expand on —and exemplify— below seeks to awaken in entrepreneurs and businessmen the concern to know how to diversify their business.

If you are currently:

Selling offline but you are interested in starting to offer your products or services online;
getting good results with retail in your online store, but you see huge potential in your business to try wholesale;
interested in adding the final consumer to your sales strategy, because you already sell wholesale; then you came to the ideal place.

Your brand has a lot of potential for expansion and we are going to help you achieve it, as we are already doing with the success stories that you will see in the section Examples of B2B and B2C businessesin this article.

Grab a pen and paper (or your favorite digital notepad) and let’s get started.

What is B2B?

B2B stands for business to businesswhose literal translation would be business to business. As we discussed at the beginning, the B2B model refers to the direct commercial transactions between companiesin which final consumers are not involved.

Among the most common examples of the B2B model is the wholesale. That is, when a company sells raw material to another, or those businesses that are intermediaries between suppliers and end customers.

B2B is characterized, among other things, by:

Have a slow sales process, since companies must analyze in depth the product or service they are going to buy.
Obtain a higher average ticket compared to direct sales to the final consumer, despite having fewer customers.
Being a model where long-term planning is crucial, precisely because it has fewer customers than a B2C business and loyalty becomes essential.

If you want to add this business model to your ecommerce, it is recommended that you strengthen business relationships with other brands and develop a robust logistics to meet the needs of your corporate client.

Learn more…

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What is B2C?

The B2C model, on the other hand, refers to the business-to-consumernamely, business to consumer. This includes online stores and marketplaces What .

In this type of business, where the focus is on serving the end customer, it is important to keep in mind that:

It is expected that the sales process quick and easythat is why it is necessary to offer the consumer a safe one so that he can make the purchase without friction.
Unlike the B2B model, the B2C model has a higher volume of customers and the average ticket is usually lower.

The results are more immediate than in B2B commerce, and stock and logistics become essential elements for your customers to buy from you again and recommend you!

Other types of electronic commerce

Although the B2B and B2C models are the best known, we show you others so that you can add more ideas that allow you to diversify your business.

C2B eCommerce

Its about consumer to business (from consumer to business) and consists of the operations in which consumers or independent professionals (freelancers) offer their services to all . A influencer of Instagram that generates content for a brand is an example of the C2B model.

C2C eCommerce

The consumer to consumer (consumer to consumer) involves the direct transactions between consumers without having a company as an intermediary. It is a more informal model and is usually associated with the sale of used products, through channels such as social networks or platforms that offer second-hand products.

B2E electronic commerce

In the model business-to-employee (business to employee) the company offers its products so that its employees can buy them with benefits such as promotions, special prices or payment facilities. This strategy helps to motivate the employee and allows you to have a feedback of your product thanks to this “internal client”.

B2G eCommerce

The type of e-commerce business to government (business to government) is one that commercially links companies with a government institution. Normally these operations are carried out through tenders or contests opened by public administrations and companies that meet the requirements can participate to become suppliers.

G2C eCommerce

The last one we will mention in this list is the model government to consumer (from government to consumer) and refers to the monetary transactions between government institutions and consumers, through their official websites. A clear example of this model would be when we pay the driver’s license or taxes.

Examples of B2B and B2C businesses

Now that you know the definition of the types of electronic commerce, let’s see three examples where the theory is concretized in real businesses.

Read more about and analyze how you can expand the possibilities of your brand.

It is a brand of environmentally friendly products that it sells to the final consumer (B2C).

What do they do?

They promote care for the environment and responsible consumption through the use of ecological products for hygiene and personal care.

How do they do that?

Through their Tiendanube, they offer the final customer all their products with different payment and shipping options.
In their store menu, they show the categories of Personal Care, Ecological Diapers, Accessories and Packs where customers can choose from toothbrushes, makeup remover wipes, feminine products, diapers and even glasses.

An online store that focuses on providing supplies, materials and training for professionals who are dedicated to applying eyelash extensions. A clear example of a B2B business, since Iduven’s clients are not the final customer of the products they offer, however they offer some services where their clients are the final consumer, so they also have a B2C business vertical.