How b2b differs from b2c

The terms b2b and b2c came into Russian business practice from Western marketing. These types of markets differ both in terms of sales entities and in terms of marketing promotion.

What is b2b and b2c

The term b2b (Business to Business) literally translates as business to business. This is a type of informational or economic cooperation between legal entities. In this case, companies do not work directly with end customers, but with another business.

Examples of b2b markets are a supply chain model where a manufacturer of any goods initially wholesale ships them to their distributor, who distributes them among dealers. Those. in this case, the goods do not go directly to retail outlets.

For example, manufacturers of suspended ceilings may initially ship their goods to companies that carry out their installation. The final consumer, in whose apartment the suspended ceiling will be installed, is absent with this interaction. This applies to manufacturers of plastic windows.

B2B companies include those that work in the field of marketing or legal consulting or are engaged in advertising. In the Western sense, b2b is just understood as supporting another business with various services.

Often, b2b refers to e-commerce systems that serve as procurement tools for large companies.

The main trend of the Russian b2b market is that many manufacturers are striving to develop their own retail sales areas. Thus, they exclude intermediary links in deliveries and can work in consumer markets with higher profitability.

By b2c (Business-to-consumer) is literally understood as business for consumers. This is a type of commercial interaction that is aimed at private or final consumers.

It is also a form of e-commerce with direct sales to private consumers. For example, an online store or sales through message boards.

Examples of the b2c market are retail stores selling food, clothing, electronics, and other products.

Companies can simultaneously operate in b2b and b2c markets. For example, shipping goods in bulk to another company and having their own retail outlets.