Whether it is retail or wholesale, the sole objective of any business owner is to make sales and improve profitability. What is B2B eCommerce, and how is it different from B2C? The key differences between B2C and B2B are pretty simple, although the revenues generated are vastly different.
B2C (Business to Consumer)
- Relatively simple sales
- Fixed prices
- Low quantities
- Easy shipping
- Little regulation or tax complexity
- Products are easily showcased and marketed
B2B (Business to Business)
- Prices are highly variable
- Higher product volumes
- Need flexible shipping and logistics solutions
- Taxes and regulatory requirements impact sales
- Marketing is more complex
B2C is a retail transaction where a business sells a product to a consumer. That transaction can happen in a mall, a store, a restaurant, or at home when you subscribe to a pay-per-view movie. More recently, the term B2C refers to an online transaction in which manufacturers or retailers sell their products to consumers over the Internet. This B2C model is probably the most familiar online buying process for all of us. If you have ever purchased an item online for your own personal use - that is a B2C transaction.
B2B involves exchanges and transactions between a company and its trading associates: suppliers, collaborators, subsidiaries, and large organizational customers. These transactions can take place through a network or privately owned connection. However, in today's business world, they are carried out online with automated applications requiring minimal human involvement.
Online sellers in the B2B area now recognize that the customer experience needs to be as close as possible to the B2C consumer experience. Expectations have been raised by the relative ease found in the B2C experience, and more and more business customers are looking for that same experience in their online transactions with suppliers and subsidiaries. B2B online buying will increase as enterprise and purchasing software become easily implemented, especially in the area of mobile applications. This will allow employees of the purchasing companies to use smartphones and tablets to buy goods 24/7 and from anywhere they happen to be.
Not only do many B2B buyers prefer to make their purchases online, but they also research the products online through websites, reviews, and comparison tactics, very similar to the individual consumer. While many differences exist between B2C and B2B, many similarities are emerging due to the popularity of the customer experience with B2C transactions. Among the characteristics making the transition are:
- Personalization
- Customization
- Interactive Catalogs
- Customer Reviews
- Inventory Availability
Your B2B processes can be brought up-to-date with the help of a B2B eCommerce platform.
