B2C (Business To Consumer)

B2C means "business to consumer". In other words, it is a term for businesses that sell products or services to private consumers (as opposed to businesses).


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 businesses that sell directly to consumers can therefore be called B2C businesses.

As a business model, B2C differs markedly from the B2Bwhich refers to trade between two or more enterprises.

B2B, together with B2C, are the two typical sales models used. B2B is the opposite of B2C, therefore B2B companies only sell their products or services to other companies.

In contrast to the B2C business model, pricing structures are often different in B2B companies. 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 shopping in stores and malls, restaurant visits, cinema experiences, etc. But with the advent of the Internet, a whole new B2C channel emerged in the form of e-commerce - i.e. selling products and services on the Internet.

B2C companies

Whatever you're looking for, you can be sure there's a B2C company ready to fill your need. There are five different models that B2C companies use to sell their products in an online world.

  1. 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.
  2. Online intermediaries do not own the products they sell on their website, but they put sellers directly in touch with buyers and usually make money by taking a cut of the transaction. You may be familiar with the concept from eBay, for example.
  3. Ad-based B2C is becoming more 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.
  4. Community-based B2C benefit from online peer 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.
  5. Subscription-based B2C models require payment to access a company's content. You know this model from Netflix, Viaplay, etc.
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