Traditionally, companies sold their products in two main ways: directly to other businesses (B2B Businesses) or directly to consumers (B2c Business Model). However, these lines have blurred with the boom in online shopping and more people working from home.
This has led to a new model called B2B2C ecommerce, where businesses sell to other businesses, which then sell directly to individual consumers, creating a more connected and streamlined way to reach customers.
Struggling to learn all about it? Let us walk you through it.
What is B2B2C?
B2B2C implies Business-to-Business-to-Consumer.
This model is all about teamwork: a company partners with another organisation to get its products or services to the end customer. Unlike white labelling, where the product is rebranded to look like it’s from the direct seller, B2B2C keeps things honest. The customer knows exactly who made the product they’re buying. This approach fosters transparency and builds trust, making the whole process clearer and more collaborative for everyone involved.
B2B2C models have gained popularity because they benefit all businesses and consumers. Developers can now offer innovative new apps to millions of users through app stores. The app stores take a cut of the revenue, making it a win-win situation.
Or consider restaurants that can now sell meals to people who want restaurant-quality food at home, thanks to partnerships with startups that handle online ordering and delivery. The delivery platforms earn money by providing these services and building a large customer base.
In a B2B2C model, two companies work closely together to deliver products or services to the customer. Take a restaurant delivery platform. The customer orders from the delivery service, which handles payment, passes the order to the restaurant, and then delivers the food to the customer. Each partner focuses on what they do best.
The delivery service offers a service that the restaurant might not be able to provide on its own due to cost or practicality. The delivery platform can build a viable business through economies of scale by serving many restaurants.
Some service providers and cloud ERP solutions even offer retail store predictive analytics services based on the data they gather. Over time, customers might form a broader relationship with the delivery service because they see it as their go-to resource for ordering takeout from various restaurants.
With successful Businesses B2B2C relationships, two companies typically team up to bring products or services to consumers in a way neither could do as cost-effectively on their own.
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B2B vs. B2C vs. B2B2C
B2B2C relationships differ from traditional B2B buyers and B2C models, and companies can use all three. In a B2B buyers’ model, a business owner sells its products to other businesses. These customers might use the products internally or be distributors or retailers that buy and resell them. In a B2C model, a company sells directly to consumers.
Understanding the differences between these ecommerce business models is crucial for making the right choice for your organisation.
B2B (Business to Business)
In a B2B model, businesses sell to other businesses. This process can involve a combination of a sales force, channel partnerships, and ecommerce platforms. Within this model, there are three common business categories:
- Manufacturers who produce goods to sell to other businesses.
- Wholesalers who buy products in bulk from manufacturers to sell to retailers.
- Distributors who purchase goods to resell to various business customers.
B2C (Business to Consumer)
In a B2C model, businesses sell directly to consumers. B2C Ecommerce model businesses may manufacture the products themselves, like Nike or Apple. Alternatively, they can buy products wholesale from various manufacturers and sell a diverse range to consumers, as seen with brands like Macy’s or Dick’s Sporting Goods.
By understanding these models, you can determine which one aligns best with your organisation’s goals and capabilities.
B2B2C (Business to Business to Consumer)
In a B2B2C model, businesses partner with other companies to reach new customers. For example, manufacturers sell consumer products to retailers, who then sell those products to consumers. This model combines elements of both B2B and B2C, allowing businesses to expand their market reach and improve customer accessibility.
