B2b v b2c12/22/2023 ![]() Sales cycleī2C businesses follow a simpler sales cycle, where the customer buys a product and pays for it. B2B has that room for additional profit if customer specifics are addressed and accordingly billed. ![]() In B2C businesses, the product or service is more or less standardised. Going back to the example of software, you would tailor the software design to fit customer-specific features. A B2B seller would put in extra effort to customise the product as per the requirement of the buyer if required. In the B2B model, the customer requirement is of much greater importance. However, a personal-use of B2C software has to be sold to many retail customers to generate the same revenue. On the positive side, if you sell a B2B software package to a company, you will get a high sale as the income would be based on the number of users. The reach of a popular B2C product can be much higher than that of a B2B product. This is truer with the advent of e-commerce, where your business can reach out to any corner of the world. Anyone, anywhere in the world, who uses your product or service, can be your customer. The B2C market has a large target audience. Some of the key differences that make one model more profitable than the other are mentioned below - 1. These differences also reflect the influence on profitability. Differences and impact on profitabilityĭue to the differences in the two business models, the nature of business of a B2B business differs widely from a B2C business. These websites are in addition to their usual B2B supply chain of stockists and wholesalers. A common example is the website-based sales of apparel brands that cater to retail consumers. A business can operate both models simultaneously. B2B and B2C can co-existĪlthough the two business models differ, they are not mutually exclusive. If you consider only the e-commerce, global B2C market size is estimated at $3.67 trillion, whereas the global B2B e-commerce business is valued at $5.7 trillion. Due to uncountable consumers, B2C business has a vast market and is often more competitive.ĭue to the difference in market size, the B2B market involves fewer transactions than the B2C market, but higher sales volume. When it comes to online business, Amazon and similar e-commerce platforms are at the forefront. These products and services are meant for the individual consumer. B2C online products and services can be everyday items, like a beauty products platform, or an online repair service provider. The B2C model involves the sale of a product or service to the end-user. Similarly, a firm providing payroll processing service to a corporate entity is also a B2B service. For instance, an online business platform that connects organic food suppliers and food wholesalers is an example of a B2B business. The buyer in a B2B transaction is not driven by individual demand instead, the product or service is meant for institutional use or eventual retail sale. ![]() In the B2B model, your product or service is sold to another business. Business to Business (B2B) and Business to Consumer (B2C) divides the target audience that your product or service will be catering to. For anyone starting a business, there are two broad business models to choose from. ![]()
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |