What is B2C?
The term B2C (also called BTC) refers to the process of selling products and services directly to consumers, who are the end users of a company's products or services. Those companies that sell directly to consumers can therefore be called B2C companies.
As a business model, B2C differs significantly from the business model B2B, which refers to trade between two or more companies.
B2B, along with B2C, are the two typical sales models used. B2B is the opposite of B2C, which is why B2B companies only sell their products or services to other companies.
Unlike the B2C business model, B2B companies often have different pricing structures. With B2C, consumers often pay the same price for the same products. Whereas businesses tend to negotiate prices and payment terms.
B2C originally referred to purchases in stores and shopping centers, restaurant visits, cinema experiences, etc. But over time, the internet came along and as the internet became widespread, a whole new B2C channel emerged in the form of e-commerce - selling products and services on the internet.
B2C businesses
Whatever you're looking for, you can be sure there's a B2C company ready to fulfill your needs. There are five different models that B2C companies use to sell their products in the online world.
- Direct sellers is one of the most common and sells a product directly to consumers. This includes small online businesses as well as large ones.
- Online intermediaries don't own the products they sell on their website, but they put sellers in direct contact with buyers and usually make money by taking a cut of the transaction. You may be familiar with the concept from eBay, for example.
- Ad-based B2C is becoming increasingly common as more and more people use online media exclusively. In this model, a company buys advertising space on a platform that receives large amounts of traffic, such as YouTube.
- Community-based B2C benefits from online like-minded communities that occur on media platforms. As many of these communities form around a common interest or physical location, businesses can more easily identify potential customers.
- Subscription based B2C models require payment to access a company's content. You know this model from Netflix, Viaplay, etc.
