Planning is a must in the work routine: through it, we can organize our ideas and establish processes that will help to achieve the set goals. However, you need to look at the form of communication used to propagate your products and services in e-commerce.
The terms B2B and B2C are being explored a great deal, although it is not a worldwide novelty. Many companies already use both modalities and try to make their plans focused on these two terms. However, it becomes necessary to understand their differences and the importance of each.
If your company still does not develop strategies for both modes, perhaps this is the ideal time to get to know them a bit better and to have a broader view of their actions in the market. Want to know how? Keep reading!
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Business to Business (B2B)
Whenever the term B2B appears in a publication you are reading, be sure that it is a business strategy that establishes a relationship of business acquisitions and sales to companies. Wholesalers, retailers, distributors, resellers and even other industries are the public of this modality.
As we are talking about a business method for business, the products will be purchased on a large scale, and the contact will be different from the one we usually have with the end consumer. This is a way to increase your conversions online and establish strong partnerships.
Business to Consumer (B2C)
Propagated also as Business to Commerce, this modality is linked to sales strategies addressed directly to the final consumer. In it, we can work our relationship with the customer through the delivery of products and services that will meet your needs.
Online transactions make it easy to reach the consumer, especially for those companies looking to work on strengthening their presence on the web. Although B2B and B2C have some distinction in their forms of planning, nothing prevents a company that contemplates all these types of the public to work mixed in their actions.
Main differences
Como viu até agora, B2B e B2C são duas modalidades dentro das acções de compra e venda que requerem formas personalizadas nas suas estratégias para melhorar a gestão de e-commerce. Logo, é preciso entender alguns dados e notar o quão distintas são essas opções.
Pricing
As seen so far, B2B and B2C are two modalities within the actions of buying and selling that require customized forms in their strategies to improve e-commerce management. So you have to understand some of the data and note how different those options are.
In B2B, many requirements are considered, such as frequency of purchases, the number of products requested and time of partnership with the company. All these influences not only the elaboration of the price but the possibility of discounts.
Some companies usually have to change tables of values and discounts. Therefore, it is necessary to know what kind of business is to identify the best way to serve you and establish what is most advantageous to both.
Profile of each audience
As we well know, the end consumer (who belongs to B2C) usually buys impulsively and is very driven by the emotion in choosing products or services that please him.
In B2B, however, there is a company that always tries to act rationally, monitors the delivery period and counts precisely with the amount already established in its budget.
Therefore, we can say that the modality that most requires personalized communication is Business to Business. This is because there is a considerable variation in the quantities of products that will be provided, a different form of payment, a very variable periodicity between them and when it comes to companies, a very peculiar difference in the mission and the vision of each one.
Therefore, we must understand that we must treat each one in different ways, seeking to captivate our tactics and promote loyalty.
Taxes, shipping and payment terms
If purchases are made in an online environment, there will always be a variation in the price offered – and this is no different in B2B and B2C.
For Business to Consumer, the price is charged to the shipping costs that the consumer will pay according to the address of his place of delivery (which, in some situations, turns out to be free).
Regarding the freights charged to the B2B, there are two types: CFI (in which the company that provides is responsible for the delivery) and FOB, which is owned by the company that is buying the merchandise. In the latter case, a company specialized in logistics is hired which, in turn, will be responsible for the delivery of the material.
While the final product only reaches the consumer after payment confirmation, B2B sales occur in a billed manner, by the availability of credits or, then by credit cards – similar to what happens in B2C.
Stock of merchandise
Stock control is a must have between B2B and B2C. In both modes, it is necessary to devise strategic ways so that there is no waste or some situation in which the product stays in the stock for a long time.
In B2B, this control is much more effective, since the sale usually goes out in batches and larger quantities in seasonal periods, depending on the market. In B2C, there is always a way to promote the sale of products through discounts.
Importance of modalities
As you’ve noticed, there are significant differences in B2B e-commerce and B2C. The end consumer does not want (and does not even need to) know the information that is passed on to the B2B customer, so a different approach and relationship between these business modalities must happen.
Online sales are a reality: consumers and businesses have found on the internet a fast and practical way of searching for services that can meet their demand and needs. Now, it is enough that your business adopts the best tactics to attend to each of them.
Did you like to know more about the concepts of B2B and B2C? So be sure to read our article on sales funnel in e-commerce.