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What is B2C in Business terms?

B2C – short for Business to Consumer – is a trade model in which products go directly from the business to the final consumer who buys goods or services for personal use. This is often contrasted with the B2B (business to business) 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 consumers receive goods or services directly – such as: B. retail stores, restaurants and doctor’s offices. This is most common for e-commerce businesses that use online platforms to connect their products to consumers.

In recent years, B2C e-commerce has seen a surge in popularity, accounting for 56.9% of retail profits in 2018-2019, with big companies like Amazon contributing. While some B2C companies use their platforms to market and sell their own products, others make money by connecting buyers with sellers, using content traffic to sell ad space, or limiting content to paid subscriptions.

Among e-commerce giants like Amazon and eBay are other well-known B2C companies such as The New York Times, Facebook, Netflix, and Uber.

How does B2C work?

B2C companies sell goods and services directly to their consumers. Consumers can be defined as end users who purchase products or services for personal use. Although many companies sell their own products, this is not a requirement for the B2C model as many companies also sell products purchased from other companies.

The B2C retail experience can be shopping at a local grocery store or buying new headphones from an online store. B2C services can include visiting a doctor, visiting a hair or nail salon, eating at a restaurant, or using the Uber app to purchase transportation.

Type of company B2C

While B2C is most often used for retailers and marketplaces, it can also be applied to content and service providers.

B2C companies can be very different. Some companies may use a combination of revenue models because many business models combine advertising and a cost-based approach.