Praveen Kumar
Table of Contents
What is B2B and B2C?
If you are in the business field or interested in Business or startups you might have heard the terms B2B and B2C, and if you don’t understand their meaning don’t worry we will explain everything with examples.
B2B
B2B is the acronym for Business to Business, which refers to the companies and organizations that deal directly from business to business for their fulfillment.
You might have heard the people saying this is a B2B startup, they mean to say that they deal directly from business to business, not the individual retailers.
Let’s understand this model with a simple example, A famous car company Elon Musk manufactures cars, they manufacture all parts like batteries and other body parts, but where do they get raw materials? The answer is simple they source it from other suppliers like Tesla, which gets their steel from European supplier Outokumpu Oyj.
This is an example where one company is fulfilling other companies’ needs. Now if any retailer tries to buy the steel from Outokumpu Oyj, He won’t be able to purchase it because they don’t sell in small quantity it would be a loss for the company.
Also Read : What is E-commerce? How to Start E-commerce
Similar things apply in startups like there are various tools that the company uses to fulfill the customer’s need. One of the Prime examples of B2B is Amazon Web Services. Amazon Web Services is a cloud hosting service that stores data for various companies like Netflix, Disney, SAP, and Sony.
Here is the list of the top 15 companies that use AWS for their business.
B2B Business Examples
Here is an example of few B2B businesses:
- Alibaba: Connects manufacturers to wholesalers.
- Amazon: Connects manufacturers to wholesalers and wholesalers to retailers.
- Slack: Project management software that allows businesses to manage their project effectively, they are selling it to the companies that have large projects to manage.
- IndiaMart: Indiamart is another example of a B2B business, IndiaMart connects manufacturers and suppliers to wholesalers and retailers.
- MailChimp: It is an e-mail marketing program that allows companies and organizations to send promotional messages.
B2C
B2C is the acronym for the term Business-to-Customers. In this business type, customers can directly deal with the retailers. The prime examples of B2C are Amazon and Flipkart, you can directly purchase goods and services from the dealers at retail prices.
Here only the supplier and buyer are involved, the supplier can also be the manufacturer ultimately they sell their services or products directly to consumers.
B2B businesses are comparatively smaller in size compared to B2B in terms of manufacturing, revenue, and manpower. B2B is generally owned by a group of people while B2C can be individual or group of people.
B2C Business Example
Here is an example of some B2B companies that serve directly to the customers.
- Amazon: Consumers can directly buy the products from the retailers online
- Flipkart: Flipkart has the same business structure as Amazon, people can come on their platform but the products are listed by the retail customers.
- Netflix: Netflix is the best example of B2B, on this platform Netflix uploads a project and consumers directly buy the product.
- Uber: In Uber, customers pay for the service directly to the taxi, hence it’s a B2C model.
Conclusion
B2B and B2C both are businesses but their customers are different. B2B are big comparatively B2C businesses and also generate more revenue.
