What is B2C Business: Definition and Specifics
Jan Korpas
3/1/2025
Sales
You sell fruit at a market, home equipment in a brick-and-mortar store, a car in a showroom, or clothing in an online shop. Your customers buy products from you and use them—they don’t manufacture anything from them or resell them. You’re part of the B2C business. What are its specifics, and how does it differ from other business models?
What is B2C Business
The abbreviation B2C stands for business-to-consumer and refers to selling to the end consumer who uses the product for their own needs. That means buying a car to drive, a house to live in, clothes to wear, or food to eat.
This differs from the so-called B2B business (business-to-business), where a company sells its products to another company. That company then uses them to manufacture its own goods or resells the purchased products to its customers.
Differences Between B2C and B2B Business
In addition to the customer type, B2C business typically differs from B2B in several other aspects:
- the price of goods in B2C is uniform for all customers, whereas in B2B it often varies by client,
- in B2C, the consumer decides on the purchase independently and usually buys quickly, while in B2B, multiple people within the company are involved in the decision, making the process more time-consuming,
- B2C targets a broad market, whereas B2B operates in a narrower market, which is why companies need to focus more on building strong customer relationships,
- therefore, in B2C, customer service is usually used only when a problem arises with the purchased product, while in B2B, high-quality customer service is sought out before, during, and after the purchase.
How to Choose the Right Business Model
The specifics of both business models can help you determine which one is more suitable for your business. If you sell components for car manufacturing that have no use elsewhere, B2B will clearly be the right choice.
But imagine you grow vegetables and want to sell them. You have two options:
- either you offer them directly to consumers as part of a B2C business—customers who will buy the vegetables from you and use them,
- or you go the B2B route and sell them to stores that will resell the vegetables to customers, or to companies that will use them to produce other products.
Advantages and Disadvantages of B2C Business
Advantages 👍
- Wide market
- Lower operating costs (especially in e-commerce)
- Shorter sales cycle
- Less intensive customer communication
Disadvantages 👎
- High competition
- Lower profit per order
- More difficult customer retention
- More administrative work
You can either build your own network of clients who will resell your goods, or target a broader market of end customers directly. A CRM system will help you manage your B2B business by keeping all your client contacts, communication, and documents neatly organized in one place. Try the CRM for free and see if it makes your business easier.
Types of B2C Companies
B2C isn’t just about e-shops and brick-and-mortar stores. There are several business models within the B2C segment, and they are often combined. Here are 5 basic B2C models:
- Direct Sellers – Companies that sell their manufactured or purchased goods on their own e-shop. This includes most e-commerce stores.
- Intermediaries – Companies that provide their e-shop platform to smaller producers for a fee. These services are commonly known as marketplaces and are offered by large e-shops like Alza, MALL, or Amazon.
- Advertising B2C – Typically websites that, in addition to their own content, publish a large amount of sponsored content from businesses. These companies use paid articles to promote their products and services.
- Subscription Services – Companies that offer products or services for a recurring fee. For example, news platforms with paid articles or e-shops sending out mystery boxes on a regular basis.
- Brick and Mortar Stores – Businesses that customers visit in person, such as retail shops, restaurants, hair salons, rental services, etc.
Jan has been doing sales and marketing since 2007 and has gained experience while working in ecommerce and running his own business. Now he is in charge of finding ways to bring in new Raynet users.
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