Commerce in itself, differs according to certain specifics. According to these details, there are many differences between the relation, details, strategies, and functions of the commerce models.
The most common used commerce models are as below:
B2C - Business to Customer
B2B - Business to Business
C2C - Customer to Customer
In this article, we are going to explain the differences between B2B and B2C commerce as they are the most commonly used models of commerce.
B2C (Business to Customer):
The term “business to consumer” refers to the process of selling goods or services from companies to customers who are end-users.
In this model, the seller is a company, and the buyer is the consumer as an individual customer.
The purchases you make as an individual from the shops or from the companies who sell their products online are considered as B2C business models.
B2B (Business to Business):
The term “business to business” refers to the process of selling products or goods from a company to another company.
The seller part is a company, and the buyer part is another company.
For instance, a company manufactures packages and sell them to another company who needs packaging with their own logo to package their products. This is an example of B2B commerce.
Another example is, a company who produces shoes purchases leather materials from another company and this is also a type of B2B business model.
C2C - (Customer to Customer):
C2C means “Customer to Customer”.
In this model, the buyer and seller parts are both consumers. As a result of the commercial relationship between two consumers, the C2C notion occurs.
In this business model that has been developed recently, consumers sell their products to buyers through certain marketplaces. There are no certain criteria in this commerce model. The product can be either brand new or can be used. Since the seller part is not a company in this C2C model, billing is not obligatory. Due to the increasing demand for this business model in recent years, several marketplaces have occurred.
THE DIFFERENCE BETWEEN B2B AND B2C E-COMMERCE
When we look at the differences between B2B and B2C, one of the most important points is that in the B2C model, the customer purchases products in line with their own needs and this fact has an impact on the speed and the flexibility of the decision process. However, the B2B model is quite different. When the purchases correspond to the needs of the company, the decision-making process may be much longer. Besides, in the case of the existing products that do not meet the expected criteria, the buyer company may then demand the production of the intended products from the seller company. Thus, the seller company's role is to add the details which meet the buyer company's need for the product or to suggest similar products. All this process makes decision making and order approval processes much longer than the B2C model.
In the B2C model purchasing, the requirements of a seller are predetermined. As a buyer, you should meet the requirements, or you find another seller.
In the B2B commerce model, it is a bit different. Buyer companies prefer to work with companies who meet their requirements such as supply process, product price, payment method or expects that the seller company is in line with these requirements.
In this model, we see that the solutions are niche and customized for the benefit of buyer companies.
In the B2C commerce model, the possibility of repurchasing after the first purchase varies from one consumer to another. If you do not provide a need that your customer always requires, they can't repurchase the same product.
This situation differs in the B2B model. In B2B commerce, buyers usually purchase the same product in bulk. Commerce in the B2B model is more sustainable. If the conditions needed are given, the business relationship must proceed following the requirements.
We tried to briefly focus on topics like the most common business models in e-commerce and the discrepancies between B2B & B2C commerce models.
The main point in defining the business models is defining the type of buyer and seller. Based on business models, each model is being detailed in itself to optimize the processes of both parties.
Different responsibilities and obligations arise within each variable model. It is essential to analyze these circumstances and follow up with the requirements well before starting trading.