Wednesday, March 10, 2010

B2B vs. B2C

Business-to-Business or B2B refers to the online buying and selling of products, services or information between companies. It often covers the entire supply chain management. Business-to-Consumer or B2C refers to the online selling of products, services or information by companies to consumers for their own use.








B2B vs. B2C
The basic difference between B2B and B2C is that in B2B the customers are companies where as in B2C the customers are individuals.
* B2B transactions are more complex as compared to B2C transactions.
* B2B transactions involve lot of negotiations over price, delivery and product specifications. B2C transactions, on the other hand, involve a specific product, price and mode of delivery.
* B2B transactions require integration with the other companies' systems. This is important for communication. B2C on the other hand does not require any integration with their customers.
* B2C transactions are mostly done through credit cards. B2B transaction on the other hand may require setting up an account with the company.
* B2B and B2C require different marketing strategies. B2C customers do online price comparisons between competing B2B sites for the best possible price.
* The sales process takes a longer time for B2B Company than for a B2C company.
* B2B websites sell big value items or services. Their products are specialised and specific. B2C websites sell small items and mostly one time sale. B2B websites involve a long-term business relationship, support services, upgrades and modifications.
* B2B purchases require evaluating multiple factors. They require much more research, thought and analysis before a purchase is made. The B2C purchase process, on the other hand is fairly simple. It mostly involves price comparisons between competitors before the purchase. This is a quick and easy job on the Internet.
* B2B websites provide lot more information as compared to B2C websites. They require presentation of information in a concise and detailed format. The client may need concise information to know about the products and then detailed information to decide on purchasing it.
* Good content is the prerequisite for the success of both B2B and B2C sites. Content on a B2B site is more technical in nature while content on a B2C site is more general and in a layman's language.
* B2C website users mostly use the product themselves. They alone complete the entire buying process on the site. The buying process on a B2B site may involve different people or departments at different stages of the buying process. So, a B2B site has to provide information that caters to people with varying needs and requirements. That is why B2B websites should be designed with usability in mind.
* One major difference between B2B and B2C websites is that most B2C websites do not have as shopping cart. This is because product and services sold on a B2B website require more presale discussion, price negotiation and customisation of the product before a sale is executed.
* B2C websites are more directly responsible for sales as compared to B2B websites. That is why B2C websites are more specific about e-commerce rules and practices.

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