What is meant by Business-to-customer (B2C)? B2C key models, benefits, and FAQs.

Table of contents:-


What is meant by Business-to-Consumer (B2C)? 

As the name suggests, B2C is the type of selling or business transactions that happen between a business and the end-user.

The common application of business to customer model can be seen in the e-commerce business model. This also gives an advantage in reaching out to the customers and a better personalized experience

Key B2C models 

Following are the five key models of B2C: 

  1. Direct seller: This is the online or E-commerce business model where via retail sites, customers can buy the product or through direct in house selling products. Example- Target.com, Apple 
  2. Online Intermediaries: They don’t own the product, but their service is to provide the medium for buying the actual product. They connect the customer with the business online. Examples: Trivago, expedia 
  3. Advertising-based: The model is to convert the web traffic on online content into customers through advertisements of products on the webpage. These platforms create free content to attract web traffic. The online platform charges the businesses to put up their ads on the webpage
  4. Community-Based: In this model, the businesses promote their products to customers based on common or shared interest patterns. For example, social media sites like facebook or instagram help the companies to promote and sell their products to targeted customers based on their behavioural patterns of platform activity or factors like place or location. 
  5. Fee-Based: These are subscription based businesses like SaaS. They charge fees based on specific packages that are provided to the customers. The package is a combination or amount of various services that are offered depending upon the price the customer will have to pay. For example Netflix, Hulu, Newyorker. 

Benefits of B2C business model 

  • Globalization and growth: Advertising and online model aids the business expansion, growth and brand extension throughout the globe. 
  • Low cost: In B2C model operational or physical costs like infrastructure, store employees, etc.
  • Customer personalization: Directly target the market segments
  • Better customer experience: Customers have an ease in searching for the desired product, payments and distribution is also flexible, and return policies for unsatisfactory products build customer’s trust. 
  • Smoother business management: Administration methods are more accurate than those with traditional business models. 


Q: What is B2C business? 

A: B2C is short for business-to-customer. It is a business model in which the business directly deals or transacts with the end-users of the product. It is most often related to e-commerce businesses. 

Q: How can sales be improved in a B2C business? 

A: Some commonly effective business techniques for sales enhancement of B2C are: 
(i) Focus on market segmentation
(ii) Provide better customer service on the platform than the competitors.
(iii) Incentives and discounts. Also, you can provide special incentives to first-time users so as to expand the domain of customers.
(iv) Better return policies for unsatisfactory products. 
(v) Personalized marketing.

Q: How is B2C different from B2B?

A: B2C stands for business-to-customer and B2B stands for business-to-business. 
B2C is a direct selling model to sell to the end-users or consumers whereas for B2B one business sells its product or services to other businesses to aid their functioning or management. Examples of B2C can be Netflix, Trivago, Amazon, etc. B2B includes hardware items sold directly to other manufacturers like a tire manufacturer who will sell the tires to automobile manufacturers.

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