A business model is a sustainable way of doing business, the unique combination of attributes that deliver a certain value proposition, and a platform that enables the strategic choices to become profitable. A business model also describes the coherence in the strategic choices.
B2C
Business-to-consumer (B2C) means selling products and services directly from businesses to consumers. B2C became immensely popular during the dotcom boom of the late 1990s because of the Internet. For example, Japanese clothing brand UNIQLO has opened its online store (https://www.uniqlo.com/tw/) in Taiwan to sell their products online.
B2B
B2B e-commerce, or business-to-business electronic commerce, describes online order transactions between businesses.
B2B e-commerce comes in many forms. For example, business-to-business-to-consumer (B2B2C), wholesale, manufacturers, and distributors.
B2B2C model takes out the middleman between the B2B organization and the B2C, putting the businesses directly in contact with the consumer. For example, the wholesaler or manufacturer sends goods to the B2B, and those goods are then sold to the final consumer.
In a B2B2C model, the wholesaler or manufacturer reaches the final consumer by either partnering with the B2B or directly selling to the consumer. For example, the consumer may purchase a product from an affiliate blogger but the product is branded and sent by the manufacturer.
Wholesale is a popular form of B2B and could also be described as the sale of goods to other businesses. Wholesale B2B models are present in many industries mostly in retail businesses. Using a B2B e-commerce platform allows the wholesaler to display products easier and creates a seamless buying experience.
Manufacturers produce finished goods in combination with factories. For example, the manufacturer creates individual car parts, such as an engine. The engine may then sells to an automotive company to produce a car, and sells it to the final consumers.
What Are The Differences?
The major difference between B2B and B2C, is selling products and services directly from businesses to the final consumers, or not. And the final consumers mean they are end customers and do not use purchased items for any other productions for sales purposes later.
The consumers of B2B is more narrow and significant than B2C’s counterparts, firms, or organizations, not for immediate usage. Instead, they use for business or internal purposes.
What Their Primary Characteristics?
Though marketing in B2B and B2C might be similar in the methods of advertising and marketing channels, there are differences in marketing tactics since they have very different target customers.
In B2C, it is very common to advertise in general media like television or social media like Facebook, Twitter, or Instagram. But, for B2B, those traditional ways may not work as we think since the target audiences are not the general public.
B2B transactions are commonly larger than in B2C as B2B sell their products to firms or groups, not individuals. Moreover, multiple individuals like managers influence the making-decision process in B2B. Normally, B2B has a deeper relationship with clients than in B2C since the B2B market is smaller than B2C.
Furthermore, the scale of potential customers in B2B is also narrower than in B2C and needs to develop a strong relationship with their clients, to builds trust with clients and loyalty. In B2C, relationships with customers are often shorter than B2B and also less loyal than in B2B. Customers are highly unlikely to wear the same clothing always from the same brand.
Unlike in B2C, B2B buyers do not buy goods to satisfy their personal demand. They purchase technology, software, and services to optimize their operation and manufacturing. Their purposes are to reduce cost or ultimately increases revenue. In short, it is for future profitability and productivity.
How Do They Fundamentally Differ?
The consumers of B2B is more narrow and significant than B2C’s counterparts, firms, or organizations, not for immediate usage. For example, you go to a Lamborghini branch to buy a car, then you are a B2C customer, Lamborghini is a B2C company. You set up a coffee shop and go to the coffee supplier to purchase coffee beans and then sell coffee drinks in your store, you are a B2B customer.
The Similarities
Marketers in both B2B and B2C, communicate directly to customers. Although the marketing strategies in B2B and B2C depend on their targets, both have to do a customer-centric sales process to win their customers. Moreover, both B2B and B2C have to make sure that they have solutions for their customers and continue the customer journey after-sales.
How Have Electronic Tools Changed The Relationship for The Better, and Not?
For B2C businesses, electronic tools changed the relationship for the better for sure. For example, we can use apps installed on our phone to purchase goods, services, and play games. Those firms can now directly provide their goods and services to their lovely customers and upgrade their relationships.
For B2B businesses, electronic tools also changed the relationship for the better for sure. For example, they can have a meeting through the meeting apps, managing projects with apps like Asana or Microsoft Teams.
Business-to-Customer (B2C)
- One time cooperation with a focus on a single transaction
- Each transaction is executed as if business/transactional partners have never cooperated in the past
- Both business/transactional partners determine for themselves whether to transact business
- Each transaction is priced specifically
- Payment method has to be determined.
Business-to-Business (B2B) are:
- Ongoing cooperation between business/transactional partners
- Large quantity of data is exchanged along the value chain
- Different business/transactional partners with specific objective have to be coordinated
- Negotiation is performed at the initiation of the relationship
- Price allocation is agreed upon at the initiation of the relationship
- Payment is made via traditional and pre-established payment channels.
Reference
B2B Ecommerce: Everything You Need to Know. (2020, November 21). Retrieved November 22, 2020, from https://www.bigcommerce.com/articles/b2b-ecommerce/
J. (2020, November 01). What is B2B and B2C? Differences between B2B and B2C. Retrieved November 22, 2020, from https://www.mageplaza.com/blog/what-is-b2b-and-b2c-differences-between-b2b-b2c.html
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