What Is B2B and B2C?

What Is B2B and B2C?


Should you market your business as B2B or B2C? The answer depends on the products and services your business offers and your industry structure.

But let’s back up: What is B2B and B2C, and what are the pros and cons of each?

What Is B2B?

B2B, or business-to-business, is when one company sells its products and services to another company. Here are two clear examples:

  • A landscaping firm providing its services only to property management companies, not residences.
  • A trucking business transporting goods for a regional distributor of auto parts.

B2B is based on creating relationships between individuals in business, typically emphasizing return on investment and cost savings. These relationships are also more stable and less affected by changes in the economy. However, with a B2B business structure, you might only have a few business customers — so losing one could be a serious setback.

What Is B2C?

A B2C business, business-to-consumer, sells its products and services directly to the end user. Restaurants and retail clothing stores are great examples of B2C businesses.

B2C businesses have a far broader customer base than B2B companies and focus more on spreading their brand names through advertising and social networks. However, B2C businesses are vulnerable to changes in consumer spending and fluctuations in the economy.

What do you think about this one? Beautiful young woman helping to choose clothes to her customer while working in the fashion boutique

What Is B2B and B2C Integration?

So, what if your business doesn’t want to pick just one lane? That’s where something called B2B and B2C integration comes in.

The major benefit of this approach is that it has the potential to stabilize revenues. Usually, if a B2B business loses a contract with a business customer, it will struggle to recoup its losses. But with a B2B and B2C integration, it could immediately shift focus toward its marketing efforts to attract more customers and recover those lost revenues.

Need funds to grow your business as the economy recovers? Check out National Funding’s small business funding solutions or fill out our contact form to contact a representative.