Business-to-consumer (B2C)

Business-to-consumer (B2C)

Author: The Carta Team
|
Read time:  2 minutes
Published date:  June 29, 2023
B2C stands for “business-to-consumer” and is used to describe companies, transactions, marketing, and other aspects of e-commerce. Learn whether the B2C business model is right for your startup.

What is B2C?

B2C, which stands for “business-to-consumer,” is one of several business models a startup can choose, depending on whether its target customers are individual customers or other businesses. 

Business-to-consumer (B2C) is a type of e-commerce business model in which individual consumers buy goods or services directly from a company. This differs from the business-to-business (B2B) model, which typically involves sales and exchanges between two companies.

In this article, we’ll explore what the B2C business model is, how it differs from B2B, and the advantages it can offer to your business and consumers. We’ll also look at some successful examples of B2C companies and how they use pricing strategies and B2C marketing to reach their target audiences.

B2C vs. B2B

B2C companies target individuals as their audience, while B2B businesses target other businesses.

B2C company

B2B company

Target audience

Individuals

Businesses

Example

Nike: Sells sporting goods and apparel to individuals.

Salesforce: Provides customer relationship management software to businesses.

Advantages of B2C

The B2C model allows businesses to connect with customers directly, while gaining data that can help shape future marketing and pricing strategies.

Customer autonomy

B2C companies can offer more transparency by allowing their customers to purchase items without having to go through a third party.

Speed

B2C businesses often have a direct line of communication to their customers. Companies can use this access to introduce new products or services quickly, and adapt based on customer trends.

Customer service

B2C companies can create loyalty by quickly responding to customer issues and providing personalized customer experiences. This leads to repeat purchases and more profits.

Data access

B2C transactions provide valuable insights into consumer behavior. By understanding customer preferences and needs, companies can create more effective marketing campaigns.

Examples of B2C companies

Online retailers like Amazon and Walmart are well-known B2C players, but traditional brick-and-mortar businesses—banks, hotels, and airlines—adopt a B2C model, too.

Using mobile banking apps, banks give customers easy access to their finances and wealth management. Bank of America, Wells Fargo, and other banks often run TV commercials, radio ads, billboards, newspaper ads, and search engine optimization (SEO) techniques to reach potential customers directly.

Hotels and airlines use loyalty programs and discounts to attract new customers and retain existing ones. Social media marketing strategies, including influencer campaigns and sponsored content, are common for companies like Hilton or Delta. Hotels can also partner with travel sites like Expedia to reach budget travelers and fill empty rooms.

Everything you need for your startup
Access exclusive resources, tools, and perks for founders in Carta’s Founder Studio.
Get started for free

The Carta Team
While we believe in assigning ownership at Carta, this blog post belongs to all of us.
DISCLOSURE: This communication is on behalf of eShares Inc., d/b/a Carta Inc. (“Carta”). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. ©2023 eShares Inc., d/b/a Carta Inc. (“Carta”). All rights reserved. Reproduction prohibited.