Business to Consumer (B2C) Model Analysis

Examples of B2C Model

Some examples of the B2C model include:

• Restaurants selling food to customers
• Shops selling products to customers
• Infomercials
• Pay-per-view movies

Some eCommerce companies like Amazon have a B2C and B2B platform to sell to their respective customers.

Because B2C companies sell directly to customers, it’s best for these businesses to keep a strong connection with their customers and offer them value. One way to do this is through effective B2C marketing.

Business Models in B2C

There are five online B2C models that companies use to sell their goods or services to the customer.

• Retailers – This includes online and brick-and-mortar stores where companies sell products directly to the customer.
• Online Marketplaces – These are online platforms where different vendors can sell to consumers within the platform. The platforms themselves don’t own the products, but rather they connect buyers and sellers.
• Advertising-Based B2C – This B2C model involves posting free content on a website to attract visitors and then also including advertisements on the webpage. Web traffic is used to sell advertising, which in turn promotes goods and services.
• Subscription or Fee-Based – These are platforms that charge a fee to access the content by the company. An example is Netflix, New York Times, etc. that charge a fee from customers to let them check out their content and retain continuous usage through a subscription.
• Community-Based – These are platforms that allow like-minded people to connect together, so businesses can promote their products/services to them. An example of this is Facebook Marketplace, which allows marketers to directly advertise their product to the customer.

What Else to Know About the B2C Model

There are two main types of risk analysis—quantitative risk analysis and qualitative risk analysis.

Do B2C Companies Only Sell to Consumers?

A B2C company supplies products to customers, but that doesn't mean a company that does B2C can't also do B2B business. A good way to keep things in order and tailor to each type of customer is to have different units of the business that have the sole focus of selling to consumers or acquiring corporate business for their product range.

How Do B2C Companies Sell Products?

Digitalization has brought a lot of changes in how businesses are conducted. A B2C company follows multiple ways to ensure that its products are sold to its intended customers. B2C companies can sell their products via:

• Digital channel
• Brick-and-mortar establishment
• Omnichannel approach with a strategic mix of both

How Do B2C Businesses Operate?

For B2C companies, having a robust supply chain in place is essential for running a successful business. Some B2C companies do not sell their products directly to the consumer market; they have intermediaries in place that help in maintaining an efficient supply chain. In simple terms, the following are the major stakeholders in a B2C supply chain:

• Producer or Manufacturer – This is the company that produces or manufactures the goods to be sold.
• Wholesaler – This is the company that buys in bulk from the manufacturer and maintains inventory in its warehouses.
• Retailer – This is the company that buys from the wholesaler and sells it to the end consumer.

The Impact of Digitalization on B2C

Digitalization has brought on a lot of opportunity and competition for numerous industries. Before eCommerce, or online selling and buying, businesses followed the conventional process of selling through wholesalers and retailers. After the digitalization of commerce creating eCommerce, new avenues opened for manufacturers to sell products directly to consumers, such as:

• Digital Channels – Manufacturers have their own online portal, through which they sell their products directly to the customers and deliver the materials using their delivery network.
• E-Tailers or Online Marketplaces – A popular example of this model is Amazon. Manufacturers list their products on Amazon. The consumer places the order through Amazon’s marketplace. The materials are delivered directly to the consumer by the manufacturer or using the e-tailer’s delivery network.

With every company vying for the attention of consumers and business partners, it was often the big players with large financial support who have been able to claim the majority of revenue in the B2C market.

However, with the establishment and recent boom of eCommerce, small businesses can gain a lot by having their own eCommerce platform or by showcasing their products and services on a marketplace eCommerce platform, taking advantage of the marketplace's established network. Startups can provide a lot of value to niche markets and grow rapidly.

B2C Marketing and Sales

In the B2C business model, marketing and sales perform distinct functions (as they do with many business models). The sales team is more oriented towards making sure the supply chain runs smoothly and that products are always available for the customer at the designated stock points.

The challenge with the B2C business model is that the customer's purchasing decision isn't planned ahead of time and their purchase process isn't defined to specific items each time, as it often is with B2B and bulk ordering. Customers will buy whatever they want and feel is best for them, at whatever time and quantity best suits them.

There are, however, ways to pick up on trends, as you'll notice that there are certain times of the year that certain items are bought more often or in certain areas. You can also keep track of consumer trends as they happen and anticipate where it's going.

This is where marketing plays a pivotal role in ensuring that customers choose your product. Promoting the right products at the right time to the right people is a major part of effective marketing. Marketing campaigns themselves must also be designed strategically to promote brand awareness without getting on consumers' nerves or being overly salesy.

Still, though, the next time someone wants to buy a product that you have, your business should be the first that comes to mind for them—or it should be at the top of the search results in any online marketplaces you're on.

Catering to All Your Customers

Considering that you have lots of different customers, you'll want to have a diverse marketing strategy to make sure you're not losing out on leads. Here are some different types of customers and how you can cater to them:

• Loyal Customer – The most valuable type of customer. A loyal customer often comes back to you to buy what they need, having a high customer lifetime value. They are also often the ones that promote your products and services to others through word of mouth. To gain and retain loyal customers, besides delivering great products and services, you often need to make meaningful engagements, special offers, customized services, and have outstanding customer service.
• Impulsive Buyer – This type of customer buys your products on impulse. To attract impulsive buyers, your product presentation and related promotions needs to be appealing and enticing. Your marketing campaigns should give buyers all the reasons why they should buy your product, but in a succinct, easily digestible manner. You can do this with images, brief descriptions, videos, comparison charts, banners, professional designs, etc.
• Bargain-Hunger – A bargain-hunter is on the lookout for the best deal. They want the highest quality or quantity they can get for the lowest price. You can often attract this type of customer with limited-time sales or by providing a better deal than competitors. Make sure to promote these assets to let bargain-hunters know about your best deals.
• Needs-Based Customer – This type of customer only buys something when they need it. That means they won't be swayed by flashy ads telling them they could use this "Extra-Swirl Stirring Stick—Better than a Whisk!" when their current whisk works just fine. They're driven by the utility of your products; why do they need this and how is it useful? One way to attract these customers is by creating engaging content covering the product's technical aspects and utility benefits, such as a video or interactive animations. It's also important to list all the product specs on the product details page.

Wrapping Up: B2C Business Model Analysis

A B2C business model can be profitable for your business with the right strategies and techniques. Having an eCommerce platform for your B2C business is one of the most crucial things you can do to establish your brand's credibility and create loyal customers. If you want to generate more leads, sell to more customers, and have the optimal eCommerce platform for your business, it's best to work with experts who can guide you through the process and build an eCommerce platform that's customized to your needs.