Business-to-Consumer (B2C)

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Business-to-Consumer (B2C) is a business model in which a commercial transaction occurs directly between a business and a customer, skipping over retailers, wholesalers, or any middlemen.1

In simpler terms, it’s any time a company sells its products or services to someone who will use them for personal reasons.

Unlike B2B (Business-to-Business), which involves transactions between two businesses, B2C focuses on providing goods and services to the end user.2

Visual Representation

b2c visual representation

Purpose

The main aim of the B2C model is to directly link businesses with individual customers, making it easier to buy and sell products and services.

Businesses can efficiently sell their products and services while consumers gain access to various choices and a convenient shopping experience.

This benefits both the company and the consumer.3

Usage

B2C (Business-to-Consumer) is used in various sectors where businesses sell products or services directly to individual customers.

Here are some common areas where B2C is prominently used:

  • Online Shopping: These days, you can buy almost anything online, whether from big names like Amazon or smaller shops.
  • Physical Stores: Grocery stores, clothing shops, and restaurants are classic examples of places where you can pick up and purchase products or services in person.
  • Service Providers: This includes places like hair salons, car washes, dentist offices, and gyms where you pay for a service.
  • Subscription Services: Services like Netflix or Spotify, where you pay a regular fee for ongoing access.
  • Mobile Apps: Phone apps let you order food, book rides, or shop with just a few taps.
  • Social Media Shopping: You can often buy products directly through social media ads, making it super easy to shop from your social feeds.4

Example

Let’s say you want pizza for dinner.

This is where B2C fits in:

  1. Finding Pizza: You use a food delivery app to visit local pizza places. This app shows you several businesses offering pizza to customers like you.
  2. Ordering: You pick your favorite spot, choose your pizza, and add your toppings through the app. It’s a direct line between you and the pizza shop.
  3. Paying and Getting Your Pizza: You pay in the app with your card or digital wallet. The app makes sure your payment is secure. Then, the pizza shop makes your order, and a delivery person brings it to your door.

This pizza order is just one way B2C happens in your daily life, like shopping for clothes, booking services, or signing up for online entertainment.

Related Terms

References

1. Wikimedia Foundation. (2023a, November 9). Direct-to-consumer. Wikipedia. https://en.wikipedia.org/wiki/Direct-to-consumer

2. Kenton, W. (2024, February 11). B2C: How business-to-consumer sales works, 5 types and examples. Investopedia. https://www.investopedia.com/terms/b/btoc.asp

3. Kumar, V., & Raheja, G. (2012). Business to business (b2b) and business to consumer (b2c) management. International Journal of Computers & Technology, 3(3), 447-451. https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=ac36aa8328563f01ea924b45966691c46602062c

4. Blokdyk, G. (2018). Business-To-Consumer B2C Second Edition. (n.p.): Emereo Pty Limited. https://www.google.com/books/edition/Business_To_Consumer_B2C_Second_Edition/vJeLvQEACAAJ

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