Business to Consumer (B2C): Explanation, Types, Example

October 10, 2020January 16, 2023 Priyanshi Shah 0 Comments

B2C, which in simple words means Business to Consumer. In B2C there is a seller/business entity at the one end and the consumers at the other end. The sellers sell their products or services to the customers with the help of the internet through websites. Customers can place their orders for the product of their choice at any time from any place. The seller sells products directly to the customer without any middleman. The buyer is an independent customer. Online shopping is an ideal example of this type. In this process, purchasing-selling is fast and easy. Besides retail selling, B2C includes many services like online banking, transportation, etc. B2C as a business model typically involves a higher volume of clients, but proportionately lower revenue per client.

Determination Of B2C Marketing Channel:

Determining an effective marketing channel or channels depends on the type of B2C business and the consumer. The business needs to first take into account their objectives and the metrics that will be used to monitor progress and results. Understanding where a customer is at and the customer’s life cycle may also play a role in which the marketing channel will generate the best outcomes. These steps include customer acquisition conversion and loyalty/advocacy. Marketers need to focus on the channel that the customers and competitors are using frequently.

Difference Between B2B and B2C:

There is a difference between marketing through business and marketing through consumers although you are still selling the product to the person, the experience shows that the difference between two types of markets runs deep.

Also Read: Business to Business (B2B): Explanation, Types, Example

B2B marketing implies the marketing of products and services to a business house that uses the same for further production of goods or supply of services or for general business operations or reselling it to customers. In simple terms a business that operates by selling its products or services to the other business.

B2C marketing implies the combination of promotional strategies and tactics used by a firm to stimulate the masses to buy the product or services offered, for their own consumption. In simple terms, the business operates by selling its products and services to the customers.

Types of B2C Models:

The B2C is a large and complex model. So, let’s look at some of the popular types of B2C models:

Product-based

The product-based B2C business provides the services to the consumers in the physical as well as in online form.

For e.g. the ZARA store provides the products in the physical store as well as the customers can order them online.

Service-based

The service-based B2C model works exactly like its name. In this, the business provides the services to the customers instead of selling the products.

Software-based

In the software-based B2C model, the business provides software products to the customers. There are two types of Software-based B2C model

“Product-focussed” Software-based

Adobe and Microsoft provide software products like editing and the creation of media to the consumers.

“Service-focussed” Software-based

Amazon prime and Gaana both provide the video and music software’s to the consumers.

There are 5 distinct models that B2C companies use to move their products in a digital space:

Direct sellers

Direct sellers are one of the most common, selling a product directly to consumers. This includes small online businesses as well as large retailers, like Microsoft and Apple, that sell exclusively in-house products.

Online intermediaries

Online intermediaries don’t own the products that are sold on their site, but they put sellers directly in contact with the buyers, and usually profit by taking the cut of the transaction. eBay and Etsy are examples of online intermediaries.

Advertising based

Advertising based B2C involves a company purchasing advertising space on a platform that receives large volumes of traffic, like YouTube. Targeted advertising uses criteria such as internet searches, content viewed, and demographic to strategically place advertisements in front of a promising customer.

Community-based

Community-based B2C takes advantage of online, like-minded communities occurring on media platforms, and beyond. Since many of these communities form around a shared interest or a physical location, companies can identify promising leads more easily.

Fee-based

Fee-based B2C models require payment to access a company’s content. Subscription services like Netflix, Hulu, and Lynda are prime examples of this model

Examples of B2C Business Model:

Amazon

AMAZON is an American electronic company and cloud computing company. Amazon works as an online retailer and provides the services of online purchasing to the customers. Amazon Prime, amazon pay are all the branches of the Amazon and all are the B2C in nature.

Flipkart

Flipkart is India’s biggest shopping app that provides electronics, fashion, furniture, home appliances products to the customers. Flipkart also works as an online retailer and provides online services.

McDonald

McDonald’s is an American fast-food company and has the largest chain of the franchise. The McDonald provides fast-food services to its customers in restaurants as well as provides online services.