What is B2C (business to consumer)?
Definition: B2C is a commerce model where businesses sell their products or services directly to consumers through their own websites or intermediaries. In the traditional sense, B2C can refer to restaurants, for example, and in the digital world, it relates to e-commerce.
The advantages of the B2C model include lower prices and quicker sale cycles because there is no presence of a third party, and the customer can contact the seller directly.
Types of B2C business models
There are 5 types of B2C business models:
Direct Sellers
Direct sellers provide their services or sell their products directly to customers through their website. The companies don’t use other platforms or any kind of intermediaries to sell their goods. The direct seller model is the most cost-effective for businesses because they don’t pay extra fees to third parties.
An example of a direct seller is Tesla, a car company that sells directly through its website, not through retailers.
Intermediaries
Unlike direct sellers, B2C transactions can occur through intermediaries who connect businesses and end-users. Usually, the company pays a certain monthly/yearly fee to use the intermediary’s platform.
An example of an intermediary is Booking.com, a site that connects hotels and hostels with consumers.
Advertisers on platforms
Another type of intermediary, but more in an advertising sense, are companies who promote their goods or services by targeting consumers on social media. This type of marketing is called PPC, and the company pays per click.
All e-commerce brands that target customers through Instagram, Google, or Facebook ads can be examples of this business model.
Community-based sellers
Community-based selling is a business model that sells services or goods to a group gathered around the same interest. Facebook groups or blogs about a specific niche are good platforms that gather people with similar interests or problems.
Subscription-based sellers
This business model is similar to “ direct sellers”. Subscription-based sellers provide access to their services based on a subscription fee, while “direct sellers” provide their services for a one-time transaction fee.
Grammarly is an example of a subscription-based B2C business model, where the company sells the tool by having consumers subscribe on a monthly/yearly basis. This business model is one of the most effective ones for customer retention.
Example of a B2C business
An example of a B2C business is Mindmesh, a virtual desk software. The company offers virtual desk software to busy individuals who want to bring all of their tasks to one place.
Mindmesh is a subscription-based seller, but individuals can get their virtual desk for free directly from the Mindmesh website.
