B2C = Business to Consumer


Business-to-consumer (B2C) is a sales term that refers to selling goods and services directly from a business to an individual consumer, the end-user.


What is business-to-consumer B2C model?

While B2C applies to any direct-to-consumer selling, it has come to be associated with running an online store. There are generally five business models within the B2C umbrella:

  • Direct Sellers: This is the most common model in which consumers buy goods from online retailers.
  • Online Intermediaries: These go-betweens — like Expedia or Etsy — connect buyers and sellers but don’t sell an actual product.
  • Advertising-based B2C: This model uses free high-quality content to attract site visitors who then encounter and interact with digital ads. HuffPost, and other sites like it, use this model.
  • Community-based: In this model, social media platforms use the communities they’ve built around shared interests to help advertisers market their goods and services to site users.
  • Fee-based: Direct-to-consumer sites charge a fee for access to their content. This model typically includes publications like The New York Times or entertainment services like HBO Max.

What are the benefits of a B2C business model?
  • Lower prices: Direct to consumer business models are often able to charge lower prices due to not having to involve multiple 3rd parties.
  • 24/7 reach: B2C eCommerce allows your business to generate revenue at any time. Post a product or service on your website, and you can make sales while you sleep.
  • Quicker sales cycle: B2C traditionally has a much faster sales cycle than B2B, which can experience months-long sales processes because of required buy-in from various stakeholders.

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