B2B vs. B2C eCommerce: A Quick Insight

Whatever be the magnitude of the business on the internet platform, it has become sheer eCommerce everywhere. Magento, Joomla and many other such platforms have brought in a lot of democracy in the eCommerce marketplace. They have facilitated the small businesses to spread their wings into larger arenas. Of course, B2C eCommerce websites have definitely become the centre of attraction not only in terms of garnering more revenues but also garnering more sales too. Simultaneously, B2B businesses too have realized the potential that this kind of business has and have made a foray into the same. Research has proved that business owners in the age group of 18–35 make majority of their business purchases online.

Before we actually take a deep plunge into distinguishing one from another, B2B to B2C, it is essential that we understand what each one of them actually is! Even before that, it is essential that we understand what eCommerce is. eCommerce is business that takes place through the computer networks like the internet. All the transactions are performed through the electronic medium.

Coming to what B2B is all about: Business to Business…This business involves the business that is carried out between businesses. Sounds confusing isn’t it? Well, to put things in simple terms, it is the business that is carried out between the wholesaler and the retailer, the manufacturer and the distributor.

Coming to what B2C is all about: Business to Customers…This business involves selling of goods and products to the public at large with the help of shopping cart software.

Though the money volumes exchanged is more in the former, the average person understands the latter as complete eCommerce.

How are B2B and B2C Sales similar?

No doubt there is a stark difference between the two modules but there are a few similarities too.

• Both the modules are centered on sales processes. Though lead generation in B2B may take a while longer and calls for more nurturing, you will definitely need a strategy like that you employ in B2C.
• Regardless of the kind of business model it is, one has to emphasize on the fact that the strategies offline and online should align well with the potential customers. Otherwise it will show on the sales.
• Whether it is B2B or B2C business model, both of them call for excellent customer support. Once the sale is accomplished, and the customer needs some support, he should be able to get the relevant service. You need to offer this if you wish to get the same client again for a repeat business.

What is the difference between B2B and B2C?

Buyer vs. Buyers: When you compare the B2C model to B2B the stark difference you see in the way shopping is done. In the former, B2C, there is only one buyer and numerous customers. In the latter there are only buyers involved. So, the process becomes more complex.

Facebook vs. LinkedIn: When it comes to B2C, the focus is more on Facebook. When it comes to B2B, the focus is more on LinkedIn. There is more exposure for businesses to show case their products on platforms like Facebook and garner more number of likes. This is not so the case for B2B and it finds LinkedIn to be a more conducive ground to get business.

Higher traffic volumes vs. higher order values: The order value of the B2C is lower when compared to the average order value of the B2B. Though there is lesser traffic in B2B, there are bigger sales and it is just the vice versa in B2C.

Pay-on delivery vs. Pay-after delivery: In the B2C setting, there is a pay on delivery facility. In the B2B setting, the person who is actually browsing through the products may not be the one buying. The purchase is performed by the department that looks into procurement. The payment is not made at the POS like in the B2C. In a B2C, there are numerous options as to how payment can be made. Once the order is placed, then shipping is arranged and the buyer will get an invoice. There are different logistic channels too.

Fixed pricing vs. Negotiable pricing: Well, the pricing structure remains the same for all customers in the B2C scenario. However, in a B2B scenario, the price changes if the order volume is high. Businesses and bigger companies that place huge orders can negotiate for a better price when compared to smaller companies that just have limited requirement.

B2B to B2C or Vice Versa…the transition that is easier?

Well, whatever be the transition, both situations can be equally tricky. When we take B2C, we can understand that the sales personnel there are used to a very short buy cycle. There is an extremely close link with ecommerce and marketing. When we take B2B, we can understand that the sales personnel have a long process ahead of them. There is a long term strategy that one needs to think of and one also has to concentrate on relationship building. For a sales professional who has been in B2B, the transition from that scenario to a B2C scenario can be very intense, for there is no planning and predictability here in B2C unlike in B2B, which they are so habituated to.

Whatever be the case, while trying to build up a sales force that is extremely effective, it is essential to consider the background of the personnel. Is the sales force right for selling your services, products and can he sustain in the market? Are they making a shift from one arena to another? Majority of the businesses consider giving training to their personnel is essential if they wish to get greater levels of sales performance as the two scenarios operate differently. To get this result, you would perhaps also consider outsourcing too which would be an affordable alternative.

Originally published at www.articlesbase.com.