To begin with, B2C and B2B are two kinds of commercial transactions where B2C stands for Business-to-Consumer and B2B stands for Business-to-Business transaction respectively. Both imply selling of products or services wherein B2C the end customer is a consumer and in B2B the end customer is another business or company. Thus, the business support systems of B2B and B2C including communications, transactions, marketing strategies, sales administration, etc. varies where the complexity, scope, cost, implementation is concerned in both B2C and B2B.
It is very important to understand the differences between B2B and B2C buyers or customers as their approach towards purchasing products or services offered by a company or business also differs. For a successful marketing strategy, comprehending the difference between the consumers’ and businesses’ buying process is crucial. Top B2B consultancies realize this as they believe their business process will determine the way the consumers and businesses would view or perceive their business.
Most often, the planning a particular purchase in B2C is spontaneous while it is planned in advance in most of the B2B transactions. When your business caters to both consumers and businesses, it is quite crucial for your business to accommodate both the kind of planning where the other’s purchasing actions are concerned. That is, the top B2B companies basically facilitate an organized structure that would allow the customers to plan their purchases in advance or on impulse.
In both B2C and B2B transactions, the decision-maker is the ultimate buyer of your product or service. In B2B, the buying process starts with an idea that would have to undergo discussions and various levels of approvals before the final purchase is made by the assigned departmental representative or purchasing agent. However, this is not the typical case in top B2C companies where consumers make both planned and impulsive purchases. Moreover, B2C consumers buy a product or service for personal use while businesses buy products or services for use in their companies making the purchasing process more complex in the latter.
The price of the same product or service is often the same for all the consumers in B2C while the price may vary from one customer to another for the same product or service in B2B. This is because the businesses either opt for large orders or negotiate a special deal with the company, for instance, while bulk hiring or recruitment process outsourcing, the best B2B and B2C consultancy. The payment mechanisms also greatly differ where it is a more complex business system involved in B2B transactions. The B2B customers place an order for which an invoice is raised which needs to be settled by the purchaser on the agreed upon payment terms. On the contrary, the payment mechanisms are quite simple in B2C transactions where the customers select the products and pay for them with cash, credit / debit cards, checks, cash on delivery, etc.
In most cases of B2B transactions, the support system promised at the time of making the purchase could be constructive in finalizing the sale. It is a common scenario for businesses to require support contracts like warranty, insurance, maintenance services, etc. which has to be agreed upon by both the parties involved in the transaction. where certain products are concerned. Although some consumers are specific about the support service, they do not follow it as a rule to finalize their decision of buying a product or service.
In B2C e-commerce products are directly sold to consumers through websites and applications on smartphones. The workings and mechanisms of typical B2C e-commerce are rather simple where the consumer would browse through the information pertaining to the product to finalize their purchase decision and place their order by accessing the payment gateways or by paying on delivery. In B2B e-commerce, the low-value products are sold to potential clients in a manner similar to B2C e-commerce. For higher value products or large orders or bulk hiring, however, a complex e-commerce business system is employed which accepts orders in different formats like emails, electronic orders, documents, etc. that involves invoicing, customer records, accounting, etc.