B2C And B2b Comparison

A Comparison between B2C and B2B

As the title suggests B2C or Business to Consumer provides products and services to a consumer customer, while B2B or Business to Business supplies other businesses. This paper will examine these two different types of business, both how they differ and also, their similarities. Also, how E-Commerce has influenced the relationship between such business and its customers.

B2C: Business to Consumer

Every person, who is economically active has dealt with a B2C type business and most likely does on a daily or weekly basis. Typically, one of the main characteristics that distinguish a B2C service is the lower purchasing volume. Because of this, the business in question requires a higher number of transactions.

While companies such as Staples, Target or Toys "R" Us still retain their traditional activities they now also trade online, but new companies have come into the foray such Amazon and Alibaba. Initially, such companies were unique being exclusively an E-commerce operation. However, this type of business is becoming the norm (Daryl Flood Logistics , n.d.).

It is the companies that began in E-Commerce that have become leaders in the E-Commerce B2C sector, such as Netflix and Amazon, now the two biggest E-Commerce businesses in the US (Alexa Internet, Inc., n.d.)

B2B: Business to Business

Every business owner or an employee that is involved in purchasing on behalf of a company is a corporate customer from a business that ins the B2B sector. As a contrast to the B2C business, a company operating in this sector will have fewer customers. Those customers will naturally buy a larger quality, in most cases.

One big difference with this sector is price, as in most cases B2B businesses have an inelastic price demand. This means that products and services provided to corporate clients fluctuate less, and not affected by the same pricing influences found with B2C

The main similarity is between the two business types is the relationship built between client and business. Showing those customers how a product or service can add value to a business just as a B2C business would show how a product can add value to the customer, be a business or an individual (Overby, 2018).

E-Commerce has certainly changed the way that businesses connect with customers. One of the biggest ways being is through Social Media marketing. That really has created an experience through stories of how products add value to a business or someone's lifestyle. This following on social media is how connections are made between customer and business. It is this that has changed not just the method of marketing, but marketing strategies have been altered for this social era. Being these relationships is not merely a new strategy for business but how businesses are marketed. Although this is certainly true with B2C. it is also the case increasingly with B2B transactions