Technology has already penetrated into all spheres of human activity. Business, commerce, and even entertainment are all available online. Your customers now come not to you, but to your website. And those who like to have a good rest no longer go to Las Vegas, but play teen patti color at home.
Today in this article we will briefly review the systems that permeate e-commerce and on which it is actually built and developed.
B2B and B2C
B2C (Business to Customer). A type of relationship in the market where a business directly sells a product or service to end users/individuals. For example, a company can provide insurance services to individuals.
B2B (Business to Business). The most important difference with B2C is that consumers are not end users or legal entities. The same example of insurance. The company can offer its services to companies and firms.
The Difference Between B2B and B2C
Apart from consumers, there are other differences in markets. This includes the length of decision-making, the number of stakeholders, the length of the relationship, and the number of clients.
Duration of Decision-Making
In the B2B market, the decision-making process takes a lot of time. An insurance company that has decided to provide its services to a company may require some time to collect documents, analyze, and verify data.
In the B2C market, on the contrary, each individual does not require much time.
Number of Stakeholders
In the B2B market, it can be difficult to find companies that want to cooperate, since there are many stakeholders who influence the company: shareholders and investors, the state, their customers, and others. For example, an insurance company has found a potential client – a large organization that can cooperate with an insurance company. However, the potential client’s stakeholders will influence the decision to cooperate with the insurance company.
The situation is different in the B2C market, in which no third parties interact with the consumer.
The Duration of the Relationship
In the B2B market, the relationship between companies and consumers lasts longer than in the B2C market, since it may take a long time to change the supplier of a product or service. That is why companies select the best suppliers. The opposite happens in the B2C market: the consumer can quickly change companies if something does not suit him.
Number of Clients
It is clear that a company in the B2C sector has a lot of customers compared to a company in the B2B sector. Imagine the same insurance company in the B2C sector can have up to a thousand customers, but if it focuses on the B2B sector, then dozens of large local companies can be in the customer base.
B2G
Business-to-Government, which literally means selling from Business to Government, that is, electronic commerce is conducted between simple trading companies and government agencies, which very often make public purchases with their placement on specialized online services. Various tenders are a very good example of how such a scheme works.
There is another scheme that involves a trade relationship between the end-user and the business. However, this option is not fully developed in our country.
C2C
Customer-to-customer, which literally means selling from Consumer to Consumer, that is, electronic commerce is conducted between ordinary consumers without any bureaucratic component. Avito or Yula services are a very good example of this scheme. Where some consumers put their goods up for sale, and other consumers buy them.
C2B
Consumer-to-Business, which literally means selling from the Consumer to the Business, that is, trade is conducted between the consumer and the business. An example of such a scheme is a pawnshop, where a consumer sells or mortgages some property to a business, and the business pays money for it.