The definition of business-to-consumer sales refers to a sales model in which business target individual consumers. Examples of B2C sales reps would be sales reps selling cars, gym memberships, or stereo systems. While some B2C goods are at a high price point (real estate, cars, boats, etc.) the majority of B2C goods are at lower price points with only one or two decision-makers. As such, the typical B2C sales cycle has a much shorter sales cycle than the typical business-to-business (B2B) sales cycle.
B2C sales can refer to any sales process that sells directly to consumers though it tends to refer specifically to retail sales. This can include brick-and-mortar establishments such as Gap or Urban Outfitters. It can also include e-commerce sites such as Zappos, which sells shoes and apparel online.
B2C Industries
As reported by the Census Bureau non-store companies account for 72.4% of all B2C retail. Some other major participants and their shares were Motor Vehicle and Parts Dealers, Sporting Goods, Book, Hobby, and Music Stores, Electronics and Appliance Stores, Clothing and Clothing Accessories Stores, and Building Materials
B2B commerce can be divided into some specific categories. These include:
- Direct sellers- Like Amazon, Banana Republic and Zappos that sell directly to customers
- Online Intermediaries- Such as Amazon.com that can sell products from a variety of vendors. They act as an intermediary and can broker deals between two parties
- Community-based models- These represent specific interest groups like a bulletin board for gardeners. They are useful to advertisers because they can be used to market to specific segments.
- Advertising based models-websites designed to generate high traffic to expose users to ads
- Fee-Based models-Such as Spotify and Netflix offer content on demand for a fee
Contrasting to B2B Sales
Business-to-consumer (B2C) sales differ from business-to-business sales in several ways.
Lower Price Points: B2C price points tend to be lower than B2B price points.Even a major B2C purchase such as a new car, for example, is tiny compared to the capital that changes hands monthly in large B2B enterprise software or services businesses, where contracts are routinely in the six or seven figures.
Shorter Sales Cycles: Partially due to lower price points, B2C sales cycles tend to be shorter than B2B sales cycles as a general rule.
Fewer Decision Makers: Most B2C transactions only have a single decision-maker. Sometimes there are two decision-makers if the purchase is being made by a couple. B2B sales often involves several individuals influencing the outcome of a deal.
FAQs
The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies.
What does B2C sales mean? ›
Business to consumer, or B2C sales, is related to the selling of products to one individual consumer. An example of B2C includes retail sales, as the items sold are directly targeted and consumed by one individual person.
What is B2C? ›
B2C, or business-to-consumer, is a retail model where products or services move directly from a business to the end user who has purchased the goods or services for personal use.
What does B2C stand for answer? ›
B2C stands for “business-to-consumer” and is used to describe companies, transactions, marketing, and other aspects of e-commerce. Learn whether the B2C business model is right for your startup.
What does b to b sales mean? ›
Business to business (B2B) sales are transactions between two businesses rather than between a business and an individual consumer for the consumer's personal use. B2B sales are characterized by larger transaction amounts, more educated buyers, a multistakeholder approval process and thus a longer sales cycle.
What is B2C revenue? ›
B2C, or the business-to-consumer model, refers to companies that sell directly to their consumers, without going through retailers or other intermediaries. B2C sales originally relied on television advertisem*nts to reach consumers, and gained greater prominence when the internet became widespread.
Is it better to sell B2B or B2C? ›
You can make a lot of money in the B2C sector, too, but it requires you to first build a massive customer base. You need a lot of customers to make good money in the B2C sector. There is often more money in B2B, and with B2B, you don't need as many customers to make good money, since you can charge higher prices.
Is B2C profitable? ›
In terms of market, B2C is more profitable as you can sell a product to many different individuals. That is, you don't have to spend on customizing products for every customer. However, the market price is fixed for every B2C product. So, your profit will depend a lot on the number of items sold.
Is B2C only online? ›
B2C ecommerce is essentially an online version of traditional retail stores, where instead of walking into a store to make a purchase, the customer just has to go online.
Is B2C expensive? ›
B2B products and services are typically more expensive than B2C products, as they often involve larger quantities and more complex solutions. In contrast, B2C products tend to be less expensive and aimed at meeting the immediate needs of individual consumers.
Is Amazon a B2B or B2C? Amazon is both a business to business (B2B) and business to consumer (B2C) company. Given the breadth of products available on Amazon, more and more small businesses turn to the website for supplies.
How to sell a product to a customer example? ›
What are some techniques for selling?
- Completely understand the product you're selling.
- Know your market and who will buy your product.
- Position the product as a solution to a problem or make something easier.
- Make your customer comfortable with you as a seller.
- Show first, then sell.
- Don't talk down to your audience.
The definition of business-to-consumer sales refers to a sales model in which businesses target individual consumers. Examples of B2C sales reps would be selling cars, gym memberships, or stereo systems.
What is a real life example of B2B selling? ›
Business-to-Business (B2B) commerce encompasses a broad spectrum of transactions, from raw materials procurement to finished product distribution and everything in between. An example of B2B would be as between a wholesaler and a retailer or as between a manufacturer and a wholesaler.
Is Airbnb B2B or B2C? ›
Business-to-consumer platforms such as Uber, Airbnb, and Amazon have become business success stories and the staples of everyday life. Yet platform models have been less successful in the business-to-business space, with most B2B platforms still in the launch stage (24%) or scale stage (60%).
What is the difference between B2B and B2C? ›
B2B stands for business-to-business, referring to a type of transaction that takes place between one business and another. B2C stands for business-to-consumer, as in a transaction that takes place between a business and an individual as the end customer.
Is Amazon a B2B or B2C? ›
Is Amazon a B2B or B2C? Amazon is both a business to business (B2B) and business to consumer (B2C) company. Given the breadth of products available on Amazon, more and more small businesses turn to the website for supplies.
What is a B2C sales job description? ›
Business to consumer (B2C) sales
B2C sales professionals sell to consumers who may need, want, and benefit or have enough money to purchase their product or service. If the product appeals to a person then they are a potential buyer, there is very little discrimination or requirements of a potential customer.
What is the difference between B2B and B2C sales cycle? ›
Longer sales cycle
Whereas a B2C sales cycle can take minutes, B2B sales often take weeks or months. In fact, it is estimated that more than two-thirds of B2B sales take three months or longer to close. That is a long time to wait for a commission check!
