The Difference Between B2B and B2C and Why It Matters

The internet and social media seem to be inundated with acronyms and abbreviations for just about everything one could imagine. LOL, BRB, TTYL, and so on, are all short codes for some of the terms that many of us, or our children, use on a daily basis. 

When it comes to business, however, abbreviations and acronyms have an altogether different purpose than mere trivial pleasure. It may be the difference between a great success or a bitter failure if the meanings of some of the more important abbreviations are misunderstood.

B2B, B2C, AIDA, CPC, CTA, CR…the list goes on, but each of these abbreviations have to do with implementing a plan for increasing the revenue of a business.

What Exactly is B2B?

B2B is a term that has been popular for many years. Many of the industries that offer goods or services strictly to businesses, communicate from their own businesses to the businesses of others. When a provider sells equipment, services, merchandise, or anything else directly to businesses it is considered business-to-business sales. 

So what does this mean?

Obviously, the term “business-to-business” is rather lengthy, so over the years through the general consent of the business world, the term was shortened to simply B2B. 

What Exactly is B2C?

Before the internet became the main way most companies do business, the way in which manufacturers sold their goods was to first produce them in factories or warehouses, then sell them in bulk to retail stores such as K-Mart and Woolworths.

When technology and the internet began to shift the way the world does business, many of the manufacturers and distributors that once sold their merchandise to other companies began to sell their products directly to consumers by means of a website or some sort of eCommerce sales platform. 

So…what happened?

Being able to connect directly with the people that were buying their products cut out a huge cost and removed the need for a middleman altogether. This type of relationship, where the consumer buys directly from the manufacturer is known as B2C, or business-to-consumer.

The Power of eCommerce

It is easy to see that, since the entire world has changed the way it does business, the potential for eCommerce businesses to succeed is tremendous. In fact, according to Shopify, the global eCommerce market was expected to bring in over $5.7 trillion in 2022. That’s a lot of money!

When it comes to a successful eCommerce endeavor, the keys lie in some crucial factors:

• eCommerce Web Development

• Captivating Web Design

• SEO – Search Engine Optimization

• SEM – Search Engine Marketing

• CRO Conversion Rate Optimization

Without a doubt, there will be a substantial amount of competition in every aspect of online product sales and services. However, with the correct plan in place, the proper tools, and a deep understanding of the target market, it is very possible to create and grow a lucrative eCommerce business.

Appealing to the Audience

It is tempting to see a business that is in the process of buying a product or a service in the same context as a consumer. Yes, the business is making a purchase, but there is a big difference between the way businesses shop and the way that normal everyday consumers do.

For example, when businesses purchase goods and services they generally don’t browse around Amazon looking for stylish shoes or hats. Businesses typically have a purchasing department that manages buying from vendors that have been approved by the company.

Believe it or not, the way that a purchasing department for a company searches for goods and services will be much different than a consumer searching for goods and services. 

In addition to the differences between the way two potential customers search for what they are looking for online, there will be a big difference in what could be appealing to each of them.

Where a typical consumer will most likely be attracted to products and services pertaining to an individual or a small group, a company will most likely be attracted to bulk options from a solid, trusted vendor.

The moral of the story is that the way an eCommerce business will present what they have to offer can be more effective if it is aimed at one specific type of audience.

Some of the goods and services that could be targeted at a business are:

• Marketing

• Web Development

• Custodial

• Office Supplies

• Technology

• Communication

• Consulting

• Health Care Plans

On the other hand, goods and services for consumers could be:

• Clothing

• Dining

• Vacations

• Movie tickets

• Groceries

• Internet

• Cell Phones

• Baby/Child Necessities

Needless to say, there are significant differences between the two.