In the business world, especially among those companies at the forefront of emerging online markets, a new market rivalry has begun: B2B vs. B2C (also known as D2C ) . And as always when technology and commerce intersect, many questions arise. Which is more lucrative? Can one company serve both markets?
Given these questions, we want to put an end to the rivalry, fundamentally explain the differences between B2C and B2B e-commerce and then prove that they are actually pretty much the same thing.
What characterizes B2B e-commerce?
B2B e-commerce (business-to-business) is the online trade of products or services between two companies. The aim is to improve the customer experience and increase sales.
Definition B2B E-Commerce
The B2B (business-to-business) industry generally deals with business between entrepreneurs. The term is used primarily in marketing, oman email list wholesale, suppliers, intermediaries or even machine manufacturers – since these are the areas in which business relationships are mainly maintained.
Common examples of B2B transactions:
- Wholesale (wholesalers sell to retailers)
- Purchase of advertising space (an agency buys advertising space for a medium)
In B2B, services but need extra effort to make several people from the company are always involved in a purchase. This means that there are automatically several decision-makers who need to be convinced of a product.
Reading tip: You can find out the most important things about B2B wholesale and how to find suitable wholesalers for your online business here.
What is the difference between B2B and B2C in online trading?
target group
One of the most important differences between B2C and B2B is the scope of the target groups. B2C brands often have to use their resources to reach a broad consumer group: sports fans, fitness-oriented mothers, cyprus business directory music-loving millennials or children in general. This also results in different demands on the marketing departments. For B2C marketing, for example, classic TV advertising is common so that a large anonymous mass can be reached. In B2B, on the other hand, more emphasis is placed on targeted networking with the relevant people in charge.
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Target groups in B2B online trading are much more narrowly defined.
There are usually a certain number of B2B buyers with fairly manageable profiles. For example, a B2B brand may only target owners of advertising agencies or finance managers at tech startups.
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products and services
The products and services also differ when comparing B2B vs. B2C. It is possible to address a large mass of anonymous consumers if it is a series product that can be personalized or easily customized. B2B products, on the other hand, are often niche-specific and require explanation. In addition, these products are often specifically tailored to the needs of the customer. Therefore, communication with the respective target and customer groups also differs considerably, as there is a different need for information.
Sales and Marketing
Since the target group of B2B companies is much more manageable than in B2C, sales and marketing also differ from each other. For example, in B2C, cold calling is a total no-go when it comes to acquiring new customers. In B2B, on the other hand, it can be an effective means of competition.
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Social media is now also playing an increasing role in the B2B sector. The networks Xing and LinkedIn are particularly suitable for addressing business customers. In addition, informative content based on facts is more in demand in this sector. In B2C, consumers are addressed more on an emotional level.
prices
A B2C brand may have to sell to hundreds of thousands of people to make a million euros in sales because it is likely selling its products at a lower price. In B2B e-commerce, brands often have only a few hundred customers but still generate millions (sometimes even billions).
The average order value is one of the reasons why B2B is so successful. Of course, there are always exceptions – B2B goods that cost only 20 euros and B2C goods worth 15,000 euros. But in most industries, the price of B2B goods is much higher.
