B2B or B2C Business Model

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Times have changed and now most of these businesses have an online presence too. Then there are those businesses like Amazon who have taken a leap in the e-commerce space and shifted their entire business completely online.

B2B Model – How Businesses Profit from Each Other

There is a general assumption that customers and businesses are poles apart- the customer being the consumer, and the business being the provider. Shattering these assumptions, B2B Business model introduces us to a concept wherein businesses act like customers too.

What is a B2B Business?

B2B stands for Business-to-business. In a B2B setup, the products and services are sold to other businesses. To give an example, Maersk Line, a global shipping company that operates over 600 vessels, is a leading B2B business. Its diverse customer base includes exporting and importing companies.

What is a B2C Business?

A B2C, or Business-to-consumer company, is one that sells products and services directly to the consumers. Restaurants, retail chains, housekeeping services are all examples of B2C businesses.

The term B2C became popular in the late 1990s when online retailers started making the most of the dotcom boom. Thanks to the internet, people could buy anything they wanted in a matter of minutes. The dotcom boom eventually went bust, but online retailers like Amazon.com and eBay gained immense popularity in the B2C space.

How are B2B and B2C Different?

By now, it should be clear that B2B and B2C businesses differ greatly because their target audiences are different. Let’s explore the specific areas where these two models contrast.

From B2B to B2C – the changing dynamic in retail

The landscape of retail has shifted. Retailers used to decide the market rules and customers adapted. In the age of customer-centric multi-channel retail, customers decide the rules and retailers try to catch up.

This new world affords many opportunities for brands, distributors, wholesalers, franchisors and predominantly concession-based department stores to shift from a B2B model to a B2C

model and place the customer at the centre of every decision made, transforming into retailers themselves.

These companies have become successful in both spaces because they understand what the customer wants. So whether it’s a business or the end user, they have the right strategy in place. By following in their footsteps, small businesses can also achieve success.