B2C (Business-to-consumer)

updated // 
2 Minutes

Business-to-consumer, or B2C, refers to selling goods and services directly from a business to an end user.

It is often contrasted with the business-to-business (B2B) model in which goods and services are exchanged between businesses rather than between businesses and consumers.

The term B2C applies to any business transaction where the consumer receives goods or services directly. Examples of this would be retail stores, restaurants, physician offices, and e-commerce businesses.

How are B2B and B2C different?

While B2B and B2C follow essentially the same equation — a customer is buying something from a company — there are significant differences between them that are worth understanding.

A B2B salesperson sells products and services to other businesses. A B2C sale is one where you sell products or services directly to an individual consumer. A B2C sale solves a consumer's problem with a product. While a B2B sale solves a business problem or helps an employee excel at their job.

B2B sales tend to have longer sales cycles, more stakeholders, and typically will only make a purchase once all criteria are met. B2C sales tend to have one decision maker, have a lower price value (typically a one-time purchase), and can be swayed to purchase through emotional storytelling.

Are there any similarities in B2B & B2C?

Both B2B and B2C sales require extensive customer service knowledge and experience.

The main responsibility of a salesperson is to deal directly with clients; in B2B sales, they deal with high-level executives, while in B2C sales, they deal directly with consumers.

The sales process is centered around the customer in both models.

It is the primary goal of salespeople in both B2B and B2C models to convert prospects into customers.