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E-Commerce Apr 28, 2022

A Comprehensive Analysis of B2C and B2B E-Commerce

Kseniia Hrechyshkyna

Kseniia Hrechyshkyna

Copywriter

Author

Oksana Shesternina

Oksana Shesternina

Business Analyst

Expert

A Comprehensive Analysis of B2C and B2B E-Commerce

Time to read: 14 minutes

Content

  1. What Is B2C E-Commerce?
  2. What Is B2B E-Commerce?
  3. A Comparison of B2C and B2B
  4. Conclusion

Experts valued the global e-commerce market at $13 trillion in 2021. Digitalization is one factor that overwhelmingly drives this expanded e-commerce market. More merchants are shifting their focus to the digital-first experience, and this increases competition.

Whether your business serves B2C or B2B clients, it is imperative that you interact with your customers as your market ecosystem dictates. In this article, we explain the differences between B2C and B2B e-commerce businesses and the specific features of each business model. Let’s start our comparison of B2B and B2C e-commerce!

What Is B2C E-Commerce?

B2C stands for business-to-customer and refers to the process of selling goods and services directly to the final consumer. It is the most common business model for e-commerce, and it became popular during the late 1990s when people began to master online shopping. However, the B2C concept dates back to 1979, when Michael Aldrich, an English inventor and entrepreneur, used telecommunications to enable online transactions between sellers and buyers.

Eventually, businesses learned to appreciate all the charms of a virtual storefront. Beginning with the early 2000s, a large number of domain names were registered, including Amazon and Zappos, which both specialized in a narrow range of products. In fact, Amazon initially started as a bookstore, and Zappos sold only shoes. Having experienced the rapid development of B2C e-commerce, the companies expanded beyond books and shoes and became world-famous corporations.

B2C

In this day and age, any merchant can experience tremendous success with e-commerce. By using modern technology, merchants can launch online stores with any level of complexity in a relatively short time and deliver a convenient and engaging shopping experience.

Types of B2C business models

B2C e-commerce is a broad field, and e-commerce companies use different ways to target their audience and sell their goods and services. At Dinarys, we focus on the following B2C business models:

What Is B2B E-Commerce?

B2B is an acronym for business-to-business. B2B e-commerce involves transactions between businesses, such as manufacturers and companies that supply raw materials. Similar to the B2C concept, B2B e-commerce originated in the late 1990s when people began using the world wide web. Since then, millions of companies have marketed their profiles and services using the internet. The emergence of the first CRM software brought brand new opportunities to the B2B table in the early 2000s.

B2B

However, it took more time for B2B businesses to implement e-commerce. Even before the pandemic, only 9% of B2B sales occurred online in the United States. The pandemic became a driving force for the entire e-commerce industry, and B2B was no exception. Now, more and more B2B companies prefer to establish client relationships with e-commerce rather than traditional marketing practices. McKinsey & Company claims that up to 65% of B2B companies from various industries are transacting business completely online in 2022. Additionally, Statista studied the percentages of B2C and B2B sales in the United States in 2020. The results of this study are pictured below.

Statistics

Switching to online B2B activities is inevitable for companies because customers prefer a more digitalized experience and turn to competitors if companies cannot satisfy their modern preferences. Moreover, 39% of B2B customers opt for self-service (interaction with a company without the assistance of sales representatives), and these self-service solutions rely heavily on digital-first strategies.

Thus, for B2B sellers to increase the loyalty of their clients and strengthen their market positions, it is imperative that they build an online presence. Read our article “Why Does Your B2B Company Need an Automated Customer Loyalty Program?” to understand how to align your B2B market sentiment with the use of e-commerce.

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Types of B2B business models

The B2B landscape is more varied in terms of supply chain links than B2C e-commerce. B2B companies may serve B2B businesses that subsequently serve other B2B companies, or B2B companies may include elements of B2C e-commerce. Here are the key models of B2B businesses:

Obviously, there is a fine line between different B2B business models because a single business may use many variations of B2B e-commerce. For example, Apple is both a B2B2B and B2B2C business, depending on the transaction.

A Comparison of B2C and B2B

Although sales transactions occur indirectly with B2B e-commerce, the demand of the end consumer drives both B2C and B2B e-commerce. In addition, B2C and B2B e-commerce share other common features, such as their goal to attract and retain as many clients as possible. However, B2C and B2B e-commerce differ in terms of order values, decision-making, customer communication tools, customer lifecycle, etc. We have described some of the key differences below.

B2C vs. B2B

The design of B2B and B2C e-commerce websites

Since we have become acquainted with the basic concepts of B2C and B2B environments, let’s move on to the more practical information in this article and explore the primary attributes of B2C and B2B websites.

First, let’s highlight the basic features that are common to both B2C and B2B e-commerce websites, which include the following:

A full-fledged B2B website also includes the following features:

If you are looking for an all-in-one solution that provides all the vital functionality to facilitate either B2C or B2B sales, Magento 2 Commerce is definitely the best choice. At Dinarys, we have years of dedicated experience in Magento development. This powerhouse digital commerce engine helps us create in-depth, optimized, multipurpose, lightning-fast, practical solutions tailored to our clients’ needs and goals.

Product pages for B2C websites

As previously stated, the decision-making process for individual buyers in B2C transactions is less complicated than for buyers in B2B transactions. Thus, B2C product pages should contain the following components:

Product pages for B2B websites

Continuing from 2021, self-service is the biggest trend in B2B marketing, so be sure to include self-service features in your B2B shopping experience. Hopefully, it is easier to deliver self-service through your website than in physical stores. Be sure to include the following elements on your website:

You might be interested in: “B2B E-commerce Trends in 2021-2025”.

Magento functionality for B2C and B2B businesses

Whether you run a B2C or B2B business, digital marketing trends indicate the need for you to deliver an up-to-date immersive shopping experience. Magento, as an extremely flexible and extension-friendly e-commerce platform, enables merchants to stay abreast of the latest e-commerce market innovations, immediately integrate them into their marketing strategies, and provide an up-to-date immersive shopping experience for their customers.

Let’s take a look at a few Magento B2C features that our experts think you should integrate into your e-commerce store:

The following Magento tools support B2B businesses and streamline their overall performance:

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Conclusion

Obviously, the specific details of B2B and B2C e-commerce businesses differ. B2C businesses seek to satisfy their end consumers, while B2B companies focus primarily on collaboration among businesses. Nevertheless, there is not a clear line between B2C and B2B environments because eventually, the B2B industry must also meet the demands of the final consumers.

The following picture summarizes the characteristics of B2C and B2B businesses:

Magento B2C vs. Magento B2B

Whether you run a B2C, B2B, or even a B2B2C business, you should implement modern technology, such as Magento 2 Commerce, and consult a professional e-commerce development company.

At Dinarys, we are ready to take your e-commerce solution to the next level. Contact us today, and we will happily provide you with a consultation or project estimate.

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