Business to buyer (B2C) Definition and Examples

The business-to-buyer (B2C) model is a widespread form of commerce, where businesses sell products or services directly to individuals. The structure underpins everyday transactions, from buying groceries to online shopping.

This piece breaks down the definition of B2C and how it differs from other sales models, such as business-to-business (B2B). Read on for examples of B2C strategies and the benefits of this way to retail.

What is business to buyer (B2C)?

B2C, stands for Business-to-buyer, and is the procedure in which businesses sell products or services directly to person consumers. This model covers various sectors including retail, online commerce, and services, focusing on direct interactions between companies and their complete-users.

The term B2C is widely used to refer to all kinds of businesses that sell products to the buyer trade, including:

• Manufacturers that sell products via a website or brick-and-mortar store
• buyer service providers
• Retailers that source a range of products for consumers

Sometimes, the term B2C may be used more strictly to describe businesses that only sell their products directly to consumers, with no middle person or third-event retailer facilitating the sale.

💡 A buyer is a person who purchases products or services for their own use.

How is B2C different from business to business (B2B)?

B2C companies focus on selling products and services directly to consumers, while business-to-business (B2B) companies serve other businesses.

Examples of B2B businesses include wholesalers, shipping companies, and software companies.

B2C is the most popular revenue strategy for those building an ecommerce store. Other business models include buyer-to-buyer (C2C) marketplaces, and buyer to business (C2B), where consumers sell content, advertising space, and other assets to businesses.

Understanding business to buyer (B2C)

The rise of B2C is tied to the growth of ecommerce and Amazon in the late 1990s. The 1998 holiday period (known as the first e-tail Christmas) saw $1.5 billion in online sales, popularizing the habit of businesses selling directly to consumers over the internet.

With no retailer markups or agent commissions, B2C online retailers could propose more competitive pricing to consumers. This sparked the shift in shopping habits toward ecommerce that continues today, persuading traditional brick-and-mortar businesses to establish an online presence.

Amazon’s expansion from an online bookstore to a global marketplace illustrates the potential of B2C. By following buyer demand and serving it directly, Amazon has grown across markets and now offers B2C services like streaming entertainment and cloud storage.

5 online B2C sales models and examples

B2C companies vary significantly, particularly online, where businesses look to monetize content and discover recent ways to reach consumers. In online B2C sales, there are generally five business models:

1. Direct sellers
2. Online intermediaries
3. Advertising content
4. throng-based
5. Fee and subscription

1. Direct sellers

In this B2C model, customers purchase products or services directly from a seller’s ecommerce website or app. They can be national manufacturers or tiny local businesses.

Online department stores such as Amazon and Zappos are also B2C direct sellers. While they list or buy products from other businesses, they sell directly to consumers.

Examples of B2C direct sellers

• Allbirds sells sustainably made shoes directly to consumers through its website.
• MVMT cuts the expense of high-standard timepieces by selling directly to consumers online.
• Gymshark, the fitness apparel and accessories brand, sells workout clothing and fitness accessories to consumers.

2. Online intermediaries

Intermediaries put buyers and sellers together. Instead of owning a product or service, they borrowing marketing and search engine optimization to match interested consumers with vendors.

Examples of online intermediaries include trip websites such as Expedia, Trivago, and the worth comparison platform Google Shopping.

Many comparison sites use metrics such as worth and reviews to aggregate the “best products” for consumers, making it easier to discover deals.

Online intermediaries engage in B2B sales by charging commissions from vendors and selling advertising space—but their complete-buyer is the person.

Examples of B2C online intermediaries

• Bookshop supports independent bookstores by connecting them with consumers online.
• Farfetch’s platform connects consumers with more than 700 boutiques worldwide.
• Houzz connects homeowners with home professionals, from architects to interior designers.

3. Advertising content

An advertising-based B2C way connects businesses to consumers through popular content. This model uses free content to attract visitors to a website or social media channel where they’ll encounter products.

An ecommerce business running ads on platforms such as Facebook, Instagram, and YouTube falls under the B2C advertising umbrella.

Advertising-based businesses can also target B2B commerce by creating advertising space for other businesses. Examples of B2B advertising businesses include HuffPost and Observer, which make popular content for the purpose of selling advertising opportunities.

Examples of advertising-based B2C businesses

• With sponsored filters, posts, and stories, Snapchat and Instagram provide platforms for businesses to advertise products to consumers via engaging content.

4. throng-based

This B2C revenue strategy involves online communities built around shared interests. Advertisers assist businesses trade their products directly to these relevant consumers. It could be a forum for photography buffs, people with diabetes, or marching band members.

The best-known example is Facebook, which helps marketers target ads to people according to their activities and interests. There’s also a growing number of throng-based websites and apps where businesses can advertise.

Examples of throng-based B2C businesses

• Pinterest lets businesses advertise products to interested consumers through sponsored pins.
• Ravelry is a throng for knitters where yarn companies and pattern designers can engage with consumers.
• A social network for athletes, Strava allows fitness brands to engage with consumers.

5. Fees and subscriptions

These direct-to-buyer sites fee a subscription fee for access to content or consumable products.

Many subscription publications and streaming services incorporate B2B and B2C into their revenue strategy. Streaming service Hulu, for example, places advertising space throughout content and sells it to businesses.

Examples of B2C subscription businesses

• Disney+ is a streaming service that charges monthly fees for access to a library of films and shows.
• Mindfulness and meditation app Headspace charges monthly fees for access to its extra charge content.
• Splash Wines lets subscribers curate cases of wine and have them delivered at a discount.

B2C vs. B2B: Key differences

These differences highlight the distinctive approaches required for achievement in B2B and B2C business models. Understanding these distinctions can assist businesses effectively tailor their strategies to their target trade.

Making sales

• B2C sales are typically smaller and made by individuals. The sales procedure involves fewer steps and can be near instant (e.g., contactless payments).
• B2B sales require research and approval from multiple stakeholders. The sales procedure may receive longer and involve bespoke product customization.

Marketing

• B2C marketing may include advertising focusing on a product’s emotional or social benefits. Brand power plays a significant role in B2C commerce.
• B2B marketing can be more features-based and geared toward specific clients. However, B2B marketing is shifting toward B2C trends. For example, 95% of brands using B2B influencer marketing declare that it helped them achieve marketing goals.

Pricing and remittance

• In B2C, consumers pay the same worth for the same products.
• With B2B pricing, businesses discuss prices and remittance terms and may not pay immediately in packed.

Benefits of B2C

Let’s receive a look at some of the benefits of B2C.

Lower prices

Direct-to-buyer businesses often fee lower prices, as they don’t require to work with and pay third parties.

Reach

Ecommerce allows B2C businesses to remain continually open. Online B2C companies can also reach customers globally. Even tiny businesses with a local brick-and-mortar presence can use a commerce answer like Shopify to sell and ship products internationally.

Customer data

Valuable customer data can strengthen a business’s marketing way. When you sell directly, it’s easier to collect and analyze ecommerce data like conversion stats, email addresses, and customer behavior patterns.

B2C challenges

While the B2C model offers benefits, it also presents challenges. Here are some ordinary hurdles and how businesses can overcome them:

Creating a user-amiable website

A well-designed, straightforward-to-navigate website is crucial for B2C companies. Shopify offers a range of customizable themes and an intuitive interface that makes managing an online store straightforward.

Handling remittance processing

If you’re selling directly to consumers, checking out needs to be as straightforward as feasible. Consumers demand multiple remittance options and often expect tiny businesses to provide the same flexible remittance and shipping services as large retailers.

To assist, all Shopify plans include a secure, high-converting online checkout that supports multiple remittance options. There’s also a straightforward POS structure for serving consumers in brick-and-mortar stores.

Mastering SEO

To rise to the top of search engine rankings, businesses require to optimize their content for SEO. That means regular content creation and managing a financing collection of current content.

B2C: The upcoming of business

Business-to-buyer models continue to drive innovation—changing how shoppers discover and buy products. With the advent of ecommerce, businesses gained the ability to reach a global spectators and sell 24/7 without the assist of third parties.

Global B2C ecommerce sales are expected to reach $8 trillion by 2026. Join the B2C revolution with a free trial of Shopify’s ecommerce tools.