What is the difference between B2B and B2C?

The distinction between B2B (business-to-business) and B2C (business-to-consumer) is foundational in marketing and sales strategies. In B2B transactions, businesses sell products or services to other businesses. This often involves larger order sizes, a focus on relationships, and a longer sales cycle as businesses align their needs with supplier capabilities to ensure mutually beneficial arrangements. Typical examples include wholesalers selling to retailers or one company providing raw materials to another for manufacturing.

Conversely, B2C transactions involve businesses selling directly to individual consumers. The marketing strategies employed here typically focus on appealing to the emotions, preferences, and immediate needs of the end user, encouraging quicker purchase decisions of smaller quantities. A classic example is a retail shop selling clothes to customers or an e-commerce site like Amazon facilitating purchases of various goods for personal use.

Thus, clarifying the terms used in B2B and B2C emphasizes how businesses operate within different markets, tailoring their approaches accordingly to effectively reach their respective audiences.