What is B2B and B2C in Business With Examples

what is b2b and b2c

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

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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.

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.

B2C

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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.

Conclusion

B2B and B2C both are businesses but their customers are different. B2B are big comparatively B2C businesses and also generate more revenue.

Hello, I'm Praveen, a seasoned blogger with a rich background spanning 3 years. My niche revolves around small business, startups, and novel money-making concepts. Dive into my blog for expert insights, practical tips, and inspiring stories tailored to fuel your entrepreneurial spirit. Let's navigate the dynamic world of business together, turning ideas into profitable ventures.