Difference Between Similar Terms and Objects

Difference Between B2B ECommerce and B2C Ecommerce

The evolution of business practices from offline to online platforms has led to the development of thousands of e-commerce platforms globally. The world is currently enjoying the ease not to mention the convenience that comes with e-commerce such that we cannot figure the state of the world without these platforms. Although it is easy to see e-commerce as one universal market used for selling products and services, the variance between B2B e-Commerce and B2C e-Commerce cannot be ignored. Although both employ a similar business model, the customer experience differs, as explained in this article. 

What is B2B e-Commerce?

Short of Business to Business, this is an online business model that facilitates transactions between two or more businesses. Because other businesses make purchases to resell or make other products using the raw materials purchased, large orders are involved. 

Since the buyers in a B2B platform could be retailers, wholesalers and manufacturers, long term partnerships are created not to mention longer buying cycles. Businesses may also require the sellers to personalize their products, although usually at an extra cost. 

Characteristics of B2B e-Commerce include: 

  • The process involves multiple decision-makers
  • Payment terms may accommodate credit sales
  • Buyers make repeat orders
  • Customers and manufactures form long-lasting relationships
  • The purchases may have defined set terms and conditions as per contract terms
  • Allows for pricing negotiations
  • Has a minimum order quantity

The most popular B2B platform is Alibaba.  

What is B2C e-Commerce?

Short for Business to Consumer, this is an online business model that facilitates transactions between business and end consumers. The popularity of B2C arose in the late 1990s during the dotcom boom and ever since then, it has become the most popular marketplace avenue.

In B2C, consumers make purchases that fulfil their emotional needs. The B2C platforms must hence be streamlined to reduce any buyer friction points such as a lengthy checkout process. 

Characteristics of B2C e-Commerce include; 

  • Payments are made upon purchase and do not allow for credit sales
  • Quick buying process
  • The frequency of purchase is low
  • Consumers make purchases on a need basis
  • The consumer prices are fixed

Among the most popular B2C platforms include Amazon, Shopify, Magento and Kibo. 

Similarities between B2B e-Commerce and B2C e-Commerce

  • Both facilitate business transactions between different parties

Differences between B2B e-Commerce and B2C e-Commerce

Definition

B2C refers to an online business model that facilitates transactions between two or more businesses. On the other hand, B2C refers to an online business model that facilitates transactions between business and end consumers. 

Priority

While B2B e-Commerce platforms prioritize on lead generation, B2C e-Commerce platforms prioritize on brand awareness. 

Purchase rationale

While customers in B2B e-Commerce purchases to resell or make other products using the raw materials purchased, customers in B2C e-Commerce purchase products on a need basis. 

Target audience

B2B e-Commerce targets resellers or manufacturers. On the other hand, B2C e-Commerce targets individual consumers. 

Order quantity

While B2B e-Commerce involves bulk orders, B2C e-Commerce involves small orders. 

Checkout

The checkout for B2B e-Commerce is often complex as it may involve chatbots and even assistance calls when need be. On the other hand, the checkout in B2C platforms is simplified with a single click to reduce any buyer friction points. 

Minimum order quantity

Minimum order quantity is an essential part of B2B e-Commerce. On the other hand, a B2C e-Commerce does not limit transactions to a minimum order quantity. 

Call to action

In B2B e-Commerce, the call to action is user-centric in that it shows how the product will be useful to the business. On the other hand, the call to action in B2C e-Commerce is business-centric in that it emphasizes the product’s benefit to the entire business. 

B2B e-Commerce vs. B2C e-Commerce: Comparison Table

Summary of B2B e-Commerce vs. B2C e-Commerce

B2C refers to an online business model that facilitates transactions between two or more businesses. It prioritizes on lead generation and targets resellers or manufacturers. As a result, it involves bulk orders and has a minimum order quantity. On the other hand, B2C refers to an online business model that facilitates transactions between business and end consumers. It prioritizes brand awareness hence targets individual consumers. Understanding the difference between B2B and B2C e-commerce is important as it helps businesses define their target markets. 


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References :


[0]Kumar, Muneesh. Trust and Technology in B2B E-Commerce: Practices and Strategies for Assurance: Practices and Strategies for Assurance. IGI Global Publishers, 2011. https://books.google.co.ke/books?id=W-2eBQAAQBAJ&pg=PA17&dq=Difference+between+b2b+and+b2c+e-commerce&hl=en&sa=X&ved=2ahUKEwiUhPONvqzsAhV18uAKHXyIB-wQ6AEwCHoECAQQAg#v=onepage&q=Difference%20between%20b2b%20and%20b2c%20e-commerce&f=false

[1]Finnie G & Sun Z. Intelligent Techniques in E-Commerce: A Case Based Reasoning Perspective. Springer Science & Business Media, 2004. https://books.google.co.ke/books?id=FwMJdZweyKQC&pg=PA59&dq=Difference+between+b2b+and+b2c+e-commerce&hl=en&sa=X&ved=2ahUKEwiUhPONvqzsAhV18uAKHXyIB-wQ6AEwAHoECAEQAg#v=onepage&q=Difference%20between%20b2b%20and%20b2c%20e-commerce&f=false

[2]Slyke C & Bélanger F. Information Systems for Business: An Experiential Approach. John Wiley & Sons, 2011. https://books.google.co.ke/books?id=xctbzjVX5q8C&pg=PA293&dq=Difference+between+b2b+and+b2c+e-commerce&hl=en&sa=X&ved=2ahUKEwiUhPONvqzsAhV18uAKHXyIB-wQ6AEwAnoECAUQAg#v=onepage&q=Difference%20between%20b2b%20and%20b2c%20e-commerce&f=false

[3]Image credit: https://commons.wikimedia.org/wiki/File:What_is_B2B_Marketing.jpg

[4]Image credit: https://www.needpix.com/photo/747999/ecommerce-online-sales-sales-online-store-trade-shopping-cart-shopping

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