B2B vs B2C: discover the main differences between these business models

B2B vs B2C: Discover the main differences between these business models

B2B vs B2C: Discover the main differences between these business models

We hear a lot about B2B and B2C markets, but do you know the difference between them?

One thing is certain, both are growing exponentially, despite focusing on different businesses.

In this post, we will cover all the points that differentiate these two business models so that no one has any more doubts about the subject.

 

B2B vs. B2C: What’s the difference?

The main difference between the B2B (Business to Business) and B2C (Business to Consumer) business models is the type of customer and operation.

When we talk about B2B, the customer is usually another company, purchasing products for its own consumption that will be resold or raw materials for its production chain. These are usually wholesale sales operations for corporate use or resale.

In B2C, sales are made to the end customer, who is usually an individual. An example of this are the operations that take place every day in physical stores and major e-commerce players.

 

B2B commerce grows exponentially in the market

Although retail operations seem more relevant to the vast majority, B2B generates at least twice as many sales as B2C. This is due to the high volume of products and supplies that companies need on a daily basis to stay in operation.

According to a survey by Forrester Research, by 2023 the forecast is that the business-to-business market will reach a staggering 1.8 trillion in transactions.

But to understand each of the models a little better, how about we talk about the operations of each one?

 

B2B operations

There are some operating models adopted in the B2B market:

  • Transformation:
    The industry sells its products to other companies, which will use them in their production chains.
  • Resale:
    Industry, importer or wholesaler sells to distributors, resellers or retailers.
  • Consumption:
    Companies sell internal consumer products to other companies, such as sulfite paper, pens, cleaning materials and coffee, or goods such as TVs, furniture, cars, etc. This type of purchasing operation does not encompass the core of the business, as is the case in the examples above.

B2C Operations

In B2C, operations can also be quite varied, but they always target the end consumer. See some examples below:

  • Stores selling household appliances, electronics, clothing, footwear, books and other products to the end customer.
  • Companies selling services, such as concert, park and movie tickets.
  • Sales of airline tickets and tourist packages to the end customer.
  • Distributor or wholesaler sells to the end consumer.
  • Industry sells directly to the end consumer.

 

B2C vs B2B: Buying Profile

When we talk about profile, both markets also present many differences, which are fundamental to defining the type of communication and sales approach.

In B2C, sales often happen due to an emotional impulse, occasion and moment. Customers generally have low loyalty and large retailers fight to offer the best price. Sales happen in a spaced manner, with a low average ticket and isolated products.

In B2B, the purchasing process always involves a more detailed and careful analysis. Customers value a good business relationship, with guaranteed supply and deadlines, where both companies benefit from the transaction.

Purchases are made in large volumes, more frequently and regularly. Price is an important factor, but the relationship and the certainty that the supplies will be received on time make all the difference when closing the deal.

 

If you are part of the B2B audience and still do not have a tool to automate your purchasing and sales processes, discover the solutions from Electronic Market. See too our post on the importance of digitalization in the business-to-business segment.

So, do you have any more questions about the difference between B2B and B2C models? Leave a comment!

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