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 wholesalethat is, when a company sells raw materials 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.
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 as Free Market.
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!
Do you want to set up your own virtual business and sell to the final consumer? Then don’t miss this post:
Article
Other types of electronic commerce
Although the B2B and B2C models are the best known, we show you other types of electronic commerce 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 () offer their services to all . A influencer of Instagram that generates content for a brand is an example of the C2B model. Look at the case of and learn about his work with influencers.
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. In Argentina it is done through the .
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.
This Argentinian design brand has three business units that allowed them to grow and expand more and more: they sell to the final consumer (B2C), to corporate clients (B2B) and also have wholesale sales (B2B).
How do they do that? To answer this question, it is convenient to start with the question What do they do?
Carla, Ornella and Mora Basilotta are three sisters who founded a clothing brand in 2008 and, after a decade of experience in the textile sector, began their journey in the world of sustainable fashion.
They currently design and make products such as bags, pots, wallets and more, from waste big bags plastic, the sand container bags that are used for the activity of the fracking (unconventional oil and gas extraction).
Now yes, how do they do that?
- Through its Tiendanube, end consumers can buy the products they want and the platform has various payment and shipping methods.
- In that same virtual store, they have a category called “Corporate Products”, where they show companies —with real photos— what kind of personalized gifts they make.
- They sell their products wholesale to stores in the interior of Argentina for resale.
Read more of the and think how you can expand the possibilities of your brand.
It is a stationery and editorial brand that sells to the final consumer (B2C) and also offers wholesale (B2B).
What do they do? They offer products with original designs and went further, with an idea that should be on the agenda of all entrepreneurs seeking to become benchmarks in their industry: they created the Fera Academy and the creativity clubwhere they offer online courses on tarot and art.
How do they do that?
- Through their Tiendanube, they offer the final customer all their products with different payment and shipping options.
- In the main menu of their online store, they have a category for “Wholesalers” where they invite interested parties to register to see exclusive products and prices.
- In that same menu, they show the categories of the Fera Academy and the Creativity Club, where the client can directly buy the course they prefer.
You know what online course can you offer thanks to your experience? Or do you have in mind share your knowledge through an ebook and add it as one more product to your online store? Write down the ideas that are coming to your head!
Rasti’s story began with a B2B model and, in 2020, it added B2C. If this is your case and you have doubts about how to start selling to the final consumer, we hope it will help you make the leap.
What do they do? Since 1965, the Dimare family has been manufacturing toys in Argentina and, since 2007, they have been the official representatives of Rasti in the country.
Their traditional customer was always the “neighborhood toy maker” and, for decades, they refused to have their own toy store.
After carefully analyzing the changes in consumer habitssaw the possibility of adding the B2C model to their strategy to learn more about the customer and improve their products based on that feedback.
How do they do that?
- Wholesale sales are managed through traditional channels, so interested companies contact Rasti directly to purchase the products.
- To sell to the final consumer, they created a Tiendanube that allows them to display and sell —in addition to Rasti— all the brands that the company manufactures, such as Blocky.
In the words of those in charge of Rasti, one of the greatest learnings of this B2C experience is to understand how to speak to the final consumer:
“While the toymaker (B2B) is thinking about the business as such, the shelf, the margin and the more technical aspects of the commercial transaction, in the B2C there is a mother with her children by her side seeing what toy she wants for them”, says Aleida Pech, leader of the Rasti Toys digital channel.
Do you want to start building your B2C business on the internet? Take advantage of them and start today. In addition, you have plans from AR$ 599 + 2% commission for you to materialize your plans to sell online directly to the final consumer!
Frequently asked questions about B2B and B2C
What dissemination strategy should I use if I have a B2B business?
Before the COVID-19 pandemic, the most common thing was to attend events related to the sector to which your company belongs and, thus, build a solid network of contacts. Although many of these activities are still carried out online, one strategy that we recommend is to organize your own seminars. take advantage of your expertise and show the business world what you have to offer!
Also note the use of email marketing: This is an excellent strategy to stay close to your potential clients and position yourself as a reference.
Do I have to be on social media if I start a B2B business?
The short answer is yes, you have to be on social media whether your business is B2B or B2C. But it is not necessary (nor advisable) that you create profiles of your brand in all networks, but only in those where your target audience is.
A social network where a B2B business definitely has to be is on LinkedInas it is a space where a large number of companies interact in search of professional services, both self-employed and other companies.
Learn more about this professional network:
Article
Can I only sell physical products in a B2C model?
No, you can also like online courses, virtual consultancies, e-books, electronic magazines, etc.
Learn how to coordinate the shipment of this type of products:
Article
Do you have more questions? Don’t worry! Leave us your query in the comments and we will gladly…
Facebook Comments
Disqus