What do B2B and B2C mean?
B2B and B2C describe two different types of businesses and transactions — Business to Business and Business to Consumer, respectively.
B2B
B2B stands for Business to Business and covers all trade and transactions between companies.
This can take the form of the following types of business, for example:
- Wholesalers (e.g. trade between suppliers and retail)
- Suppliers (e.g. delivery of raw materials to manufacturers)
- Service companies (e.g. consultancy, advisors, etc.)
- SaaS (software for businesses)
TIP!
Read more about B2B (including B2B marketing and sales, etc.) here.
B2C
B2C stands for Business to Consumer and covers all trade and transactions between a business and a private individual — i.e. the end consumer.
Below you will find some typical B2C companies:
- Webshops (fashion webshops, electronics webshops, etc.)
- Physical stores (clothing stores, grocery chains, etc.)
- Service companies (travel agencies, dentists, etc.)
TIP!
Read more about B2C (including B2C marketing and sales, etc.) here.
What is the difference between B2B and B2C?
There are significant differences between the B2B and B2C markets — both in terms of the actual transactions, purchasing behaviour, and naturally also in sales and marketing.
In general, B2B differs from B2C (and vice versa) in the following areas:
- B2B typically involves multiple decision-makers, whereas B2C often involves only one.
- B2B purchases typically involve a longer buying process than B2C.
- B2B typically involves a more complex customer journey than B2C.
- There is little or no emotional involvement in B2B transactions, unlike in B2C.
- In B2B, rationality is paramount: economics, functionality and price are weighted highest.
- In B2B, decisions and alternatives are evaluated based on data and figures.
- The average order value is often higher in B2B compared to B2C.
This will likewise be directly reflected in your company's marketing and sales strategy, which will be shaped by the above — both in the strategy itself, the choice of channels, messaging, tactics, and more.
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