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B2C and B2B are two forms of commercial transactions. B2C, which stands for business-to-consumer, is a process for selling products directly to consumers. B2B, which stands for business-to-business, is a process for selling products or services to other businesses. The business systems that support B2B or B2C communications, transactions and sales administration differ in complexity, scope, scale and cost, so it is important that you implement the right system for your customers.
Purchasing Process
Consumers buy your products or services for personal use. Business buyers purchase products or services for use in their companies. In B2B-buying, the purchasing process is more complex. Decision making groups include members from technical, business, financial and operational departments, depending on the type of purchase. The person selecting a product may not have authorization to purchase or may not have responsibility for making the final purchasing decision. A large capital purchase, for example, may require authorization at board level.
Payment
In B2C, consumers who buy products from you pay the same price as other consumers. In B2B, price may vary by customer. Customers who agree to place large orders or negotiate special terms pay different prices to other customers. Payment mechanisms also differ. In B2C transactions, consumers select products and pay for them at the point of sales using payment mechanisms such as credit or debit cards, checks or cash. B2B transactions require a more complex business system. Customers select products, place an order and arrange delivery through an agreed logistics channel. Customers do not pay at the time of the order, but receive an invoice which they settle within agreed payment terms.
Business-to-business (B2B) refers to a situation where one business makes a commercial transaction with another. This typically occurs when: A business is sourcing materials for their production process.
Business-to-consumer (B2C) is the type of commerce transaction in which businesses sell products or services to consumers
B2B business is Business to business. So basically it's only between companies or professional.
While the B2C is a business to consumer. So you are directly in touch with your customers
B2B is shorthand for business to business. The products and services of the business are marketed to other businesses. Examples include advertising agencies, web hosting and graphic design services, office furniture manufacturers and landlords who lease office and retail space. Business to business relationships are developed and ongoing, and the sales processes involved take longer than business-to-consumer relationships. B2B decision making may take place at more than one level. For instance, the salesperson meets with the departmental manager, who then has to get approval from the business owner before the sale is closed. Emotions have no place in B2B sales.
Business to ConsumerThe final customer is the consumer with a B2C business. Housecleaning services, restaurants and retail stores are examples of B2C companies. Websites that offer consumer products are B2C. The B2C sales cycle is shorter. The consumer is encouraged to buy the product immediately. For example, a mother is looking for educational toys. She finds the site, reviews the product and buys the toy. Purchases are made on an emotional basis as well as on the basis of price and product. It gets a little confusing when the product is marketed to consumers but goes through several steps to get to the customer.
