What is a B2B and what is a B2C web shop?
In earlier blogs we talked about the B2B web shop, why should you have it and what are its advantages. But before we continue to give advice for online stores in wholesale, we realized that we have to go over the basics one more time. In fact, it seems that a great number of people is still confused about some basic principles regarding web shops. To be more precise – they can’t tell the difference between a B2B and a B2C web shop. If all these mentioned “B” letters and numbers “2” cause the appearance of question marks above your head also, don’t worry. You are not the only one. Its quite simple actually and here’s why.
What is the main difference between B2B and B2C?
If you do sales, you can have only two types of clients; other companies or consumers. When your clients are other companies, then it’s a B2B i.e. “business to business” type of sales. If your clients are consumers themselves then it’s a B2C i.e. “business to consumer” type sales. There are significant differences between these two types of sales.
What is B2B sales?
In simplest terms, a B2B company sells its products and services to other companies. B2B is created when a certain company needs operative help or raw materials for production.
Let’s say a company that does wholesale can buy a software solution that will simplify and speed up the whole selling process, from another company. A good example is an implementation of the ERP system, without which doing business in wholesale today is unimaginable.
Here’s another every day B2B example – your favorite chain store buys products directly from the food and drinks manufacturer every day, which then sells to you as end consumers.
What is B2C sales?
The answer is simple. Business to consumer i.e. B2C company sells its products directly to the consumer. Examples? Retail stores, restaurants, clothes shops, etc.
The name B2C became popular at the end of the 90s in the midst of DotCom “balloons” and the boom of online stores. Buyers realized then that they can buy anything they want in stores that sell online much quicker and easier. Retail companies like eBay and Amazon used this opportunity very well and became popular on a global scale.
What is the difference between B2B and B2C sales?
So, the main difference between B2B and B2C sales are the buyers themselves which can be other companies or end consumers. But there are some other obvious differences.
The process of buying
With B2C sales, buying is shorter and simpler. A buyer searches for a product in the web shop, finds it and buys it. It can’t get any simpler than that. On the other hand, B2B sales is much more complex. Why? First of all, the decision to buy products or services isn’t made by only one person, which prolongs the whole process. Pricing policies are more complex. Additionally, bills are much higher and therefore the potential risk from the buyers’ point of view.
It is therefore extremely important that the offer in a B2B web shop is simple and clear, and all accompanying documentation easily procurable. B2B buyers today want solutions that will enable them a pleasant online shopping experience.
Buyer loyalty
When it comes to buyers’ loyalty, things are very simple. If you buy e.g. ski gear, new headphones or something else online as a B2C buyer, it doesn’t necessarily mean that you are immediately loyal to that brand. Actually, buyers’ loyalty is not that important in B2C sales.
On the other hand, in B2B business, it makes the basis of every collaboration. Why? The answer is simple. Companies want long-term collaboration with other companies and the quality of that collaboration depends on the whole selling process – from acquisition to pricing.
That is why more and more companies in B2B sales are looking for software solutions that enable them to respond to any request their online clients have. That way they become much more than just suppliers for their clients.
Product information
Buyers of a B2C web shop look for favorable prices and a quick delivery. They have little interest in just the product information. It’s a whole different situation in a B2B web shop. Average B2B web shop buyers want to know as much information as possible on products or services they plan to purchase. That’s why B2B buyers today look for more detailed but clear product catalogues that provide them with all the information they need.
Marketing
A buyer in a B2B web shop wants details on a product and makes the decision to buy based on whether he/she is satisfied with the product description, the way it functions, additional documentation, quickness of response of the online customer service etc. Thus, B2B buyers search for a detailed display of the solution. B2B web shops define their marketing strategy accordingly.
What is a B2C rule? B2C buyers make the decision to buy mostly guided by emotion. And it ends there. The basis of marketing in B2C sales is to cause emotion that leads to buying and to elaborate on what the product or service can do for the buyer.
Although it’s not a rule, there are examples that prove that it is possible to be successful simultaneously in B2B and B2C sales. One of those is Amazon. This online retail market giant has successfully started Amazon Business – an online platform for B2B clients, which presents strong competition to others in the B2B ecommerce market.
Conclusion?
Whether you have a B2B or a B2C web shop, you simply must understand what your buyers want. Therewith B2B clients are much more demanding, but if you offer them a qualitative service you can count on a successful long-term collaboration.
You are interested in achieving that? Contact us today to be presented with the best solutions for satisfied online customers and a successful B2B web shop.
