Sales Loves MarketingB2C, short for business to consumer, describes a company that sells to individual people for their own use. A supermarket, a streaming service and a phone shop are all B2C. The opposite is B2B, where a company sells to other businesses.
How does B2C differ from B2B?
The same product can be sold both ways. A project management app might have a personal plan for individuals and a team plan bought by a company. The sale works very differently in each case.
| B2C | B2B | |
|---|---|---|
| Who buys | One person, for personal use | A company, often through several stakeholders |
| Who decides | Usually the buyer alone | Often procurement managers, financial officers and technical experts |
| Deal size and frequency | Smaller, more frequent | Larger, less frequent |
| Terms | Standard price and terms | Often negotiated, sometimes with legal counsel |
| Relationship | Often transactional | Usually built for the long term |
Wikipedia's article on B2B sums up the scale difference: B2C transactions are "typically smaller in scale but higher in frequency", while B2B buying "typically involves multiple stakeholders".
What are the main types of B2C business?
- Retailers sell other companies' products to consumers, in shops or online.
- Direct-to-consumer (DTC) brands make their own products and sell them straight to customers, skipping retailers and wholesalers. DTC is a modern form of B2C.
- Marketplaces connect consumers with many sellers and take a fee.
- Subscription services charge a recurring fee for access to content, software or products.
- Advertising-funded services are free to use and earn money by selling ads to businesses. Here the consumer is the user, but the paying customer is a business.
How does B2C marketing differ from B2B marketing?
Because one person decides, B2C marketing tends to reach large audiences with a short path from first contact to purchase. Typical channels are social media, search ads, e-commerce promotions and email.
B2B marketing has to reach a group of people inside one company, each with their own concerns, over a longer period. That is why B2B teams use account-based marketing, sales outreach, case studies and content that helps a buyer make the case internally. See how to develop a B2B marketing strategy.
Some metrics matter in both models. Customer acquisition cost and lifetime value tell you whether each new customer is worth what you pay to win them, whether that customer is a person or a company.
Can a company be both B2B and B2C?
Yes. Many companies serve both markets. Wikipedia names Alibaba as a B2B platform that is "also involved in B2C". Software companies often run a self-serve plan for individuals alongside sales-led contracts for businesses. In that case the two sides usually need different pricing pages, messages and sales processes.
Frequently asked questions
What is the difference between B2B and B2C?
B2B companies sell to other businesses, where purchases usually involve several stakeholders such as procurement, finance and technical experts. B2C companies sell to the general public, where one person usually decides and transactions are smaller but more frequent.
What are examples of B2C companies?
Online and high-street retailers, streaming and app subscriptions, restaurants and food delivery, and consumer banking are all B2C. Many companies sell both ways, for example software firms with a personal plan and a business plan.
Is direct-to-consumer (DTC) the same as B2C?
DTC is a type of B2C. A DTC brand sells its own products straight to customers and skips third-party retailers, wholesalers and other intermediaries. A B2C company can also sell through those intermediaries.