E-Commerce Customer Business Models – B2B Vs B2C

In the ever-changing market scenario and business needs, there is a massive growth in 2016 in the customer count who use “Online Ecommerce Store” to purchase electronic products, clothing, accessories and others. There are two major categories of ecommerce business models subjected to the types of customers served.

b2b-vs-b2c-i

The difference between the two reclines primarily on the “The Customer” while having a common business sales process and marketing programs.

Business-to-Customer Vs Business-to-Business

  1. Size of market
  2. Purchasing process
  3. Sales Process
  4. Cost of Sales
  5. Purchase Decision
  6. The Value of Brand
  7. LifeTime Customer Value

Size of Market

B2C – This is typically a broad market with enormous sales prospects in the ecommerce industry.

B2B – In terms of the number of customers, B2B is a small vertical market but with large sales prospects.

Purchasing process

B2C – It includes a purchasing process of selling products directly to customers in which no decision makers are involved.

B2B – The buying process in a B2B market is a complex and usually longer process with more number of people involved.

Sales Process

B2C – Usually related to selling products directly to the customers, the sales approach in B2C model follows the traditional process of “Convincing the Customer”.

B2B – Involving more than one individual in the process of selling products from one business to another, the sales approach here is typically a “Two-step” process.

Cost Process

B2C – The cost of sales is comparatively lower except for a few customer purchases that have high price points including car, home, gold and the like.

B2B – The selling costs are costlier than B2C model as “Higher Value” purchases usually cost thousand dollars to millions of dollars.

Purchase Decision

B2C – As the purchasing behavior of the consumers relies on the quality and convenience it focusses more on the emotional perspective of the buyers.

B2B – The buying decisions are based on business value as buyers approach with a rational thinking of increasing revenue and reducing costs.

The Value of brand

B2C – Popularising brand identity is increasingly important in B2C market involving several advertising strategies.

B2B – Brand identity in B2B market is created through personal relations and consultative selling.

Lifetime Customer value

B2C – The lifetime customer value is lower due to the lower cost of individual sales with less likelihood of repeat sales.

B2B – Here, lifetime value of b2b customers are much higher due to the increased cost of sales and the possibility of repeat sales.

It is significant to analyze the customer model that best suits your products and plan your marketing strategy including sales strategy, brand promotion and social media promotions. Numerous ecommerce solutions are available in the ecommerce software market platform that really helps to automate your marketing & sales process.

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