eCommerce might be one big universal market with two major models – B2B & B2C eCommerce, but it has many differences when it comes to making a decision, pricing, marketing and other activities. Whether you are just a beginner or you have been in the business for a long while now, it is important to know the differences of both the forms.
Business to Business eCommerce is when one business is doing transactions with another business such as outsourcing materials for production or output.
B2B transaction can happen between manufacturers, wholesalers and retailers of the products and services of the business. For example, buying products to sell from a website like Amazon.
B2C stands for Business to Consumer eCommerce meaning commercial transaction of products and services between business and the consumers directly.
This transaction will always be with the end user who purchases the product or service from a website. For example, a consumer purchasing new clothes from Alibaba.
Do you know the major difference & other differences between the two?
|DIFFERENCES||B2B eCommerce||B2C eCommerce|
|Types of Customers||Decision-making units||Individual Buyers|
|Types of Products & Services||Specific products in bulk quantities||Consumer goods in small quantities|
|Website Design & Marketing||Content matters most||Eye-catchy & Unique interface required|
|Checkout Process||Credit basis||Direct, on-the spot|
Major Difference between B2B and B2C eCommerce
The major point that differentiates the two types of model is the:
Type of Customers
Consumers is crucial to both the models.
B2B eCommerce sites aim at transaction with large companies in order to purchase goods and services to later sell to the end users. The customers for B2B model majorly consist of managers, brokers, resellers, sales representatives etc. They make rational decisions in order to complete the business transaction after a long purchase process, negotiations and personalization until the site visitors turn into paying customers.
B2C websites sell their products and services directly to the end users. The customers for B2C model include single buyers who are searching for a specific product for their personal need or gifting purpose. They make the buying decision after evaluating their emotions, likes and dislikes. Their purchase is initiated through the website’s marketing and the buyer journey on their website.
Both the target customer base is very different than each other making it the major difference between the two models. Whole both require different reasons to buy and different sales processes, it helps the eCommerce websites to understand the customer better.
Other Differences between B2B & B2C eCommerce
Types of Products & Services
B2B eCommerce websites deal with certain specific products and aim at a niche market to satisfy the needs of their customers which are other businesses. They deal in broad category of products such as furniture, fertilizers, textiles, machinery or technology. Usually the transaction in bulk orders because the business buyers require large quantities of products at one time.
B2C sites deal with a broad market of consumers goods. By selling huge varieties of products tailor made to the requirements and needs of the end user such as Tv, kitchen appliance, toys or utensils. The transaction is usually smaller in quantity than that of B2B consisting of single item or a couple of items.
Pricing of Products
In the B2B sector, the pricing of products is diverse because there are several discounts offered due to the bulk quantity of orders. The pricing depends on the quantity of products, delivery time, loyalty programs and the agreement between both the businesses.
In B2C sector, prices are fixed. There are price catalogs with set prices for each product. The client’s purchase relation or come back call does not influence the pricing of the products and services. There are special discounts and offers on transactions but it is applied to buyers equally.
Because the B2B transactions are in large quantities and high volumes in a short period of time, the payment can be done on credit basis. These businesses usually provide several payment options like credit limits, payment history and post-delivery payment.
In the B2C eCommerce, payments are done straight away. The end users are expected to pay for their orders directly, either using the online payment methods or cash on delivery method.
Website Design & Marketing
While B2B websites are not very keen on the design and appearance of the website, they emphasize more on the useful information related to the trade. Their marketing strategy should focus on building customer relations and long-term business partnerships.
B2C websites are for the consumers eyes. They focus on attracting the consumer through the design of the website which should be catchy and unique. Their marketing strategy include marketing channels, promotion methods and social media engagement.
Relationship with Clients
B2B ecommerce focuses on long-term customer relations. The power of reorder and the satisfaction with the services provided by one business to another is the most important aspect here. The priority for such sites is to maintain and retain their buyers and continuing to build a good long-lasting customer relation with them.
B2C customers are single buyers who usually make short-term relations with the online business. Their focus is on fulfilling their one-time need by buying the product or service in that moment.
The process of checkout in B2B model is quite complicated including multiple orders, various payments and delivery options. B2B clients make long-lasting customer relations in order to re-order and have a unique account with already saved details to make the user experience and reordering an easier and better process.
B2C consumers do not prefer logins and registrations. They focus on finding easy checkout process which only requires their basic information and address with delivery time details. They do not want to go through a long purchasing process and expect the website interface to be good without needing to talk to the customer care for clarification.
Now that you know various differences between B2B eCommerce and B2C eCommerce, you can differentiate the two models to create an easy understating of online trading and customer satisfaction and expectations.