Business to Consumer (B2C)

Posted on by user

Business-to-Consumer (B2C)

Key takeaways

  • B2C refers to companies that sell goods or services directly to individual consumers rather than to other businesses.
  • The model evolved from in-person retail and TV-based sales to widespread e-commerce during the dotcom era, then toward mobile commerce.
  • Common online B2C models include direct sellers, online intermediaries, advertising-based sites, community-based platforms, and fee/subscription services.
  • B2C marketing typically targets individual emotions and preferences; B2B marketing emphasizes product value, ROI, and decision-making processes.

What is B2C?

Business-to-consumer (B2C) describes transactions where companies sell products or services directly to end users. Examples range from brick-and-mortar retail and restaurants to online marketplaces, streaming services, and mobile apps. The core goal of B2C is to satisfy individual consumer needs and drive repeat purchases through branding, convenience, and experience.

How B2C evolved

The B2C concept predates the internet, but e-commerce dramatically changed scale and distribution. Early online retail pioneers emerged in the late 1990s; after surviving the dotcom shakeout, companies such as Amazon and eBay became major disruptors. Since then, B2C has continued to shift toward personalized digital experiences and mobile-first interactions.

B2C storefronts vs. online retailers

Traditional retail depended on physical stores and intermediary retailers who purchased from manufacturers and sold to consumers at a markup. E-commerce enabled manufacturers and new digital businesses to sell directly to consumers, reducing intermediaries and often lowering prices. This direct approach reshaped supply chains, pricing, and customer expectations for convenience, selection, and delivery speed.

Five common online B2C models

  1. Direct sellers

  2. Retailers or manufacturers sell products directly to consumers via their own websites or online stores (e.g., brand websites, online department stores).

  3. Online intermediaries

  4. Platforms connect buyers and sellers without owning the inventory (e.g., Expedia, Etsy, travel and marketplace aggregators).

  5. Advertising-based

  6. Sites provide free or subsidized content and monetize traffic with advertising (e.g., media outlets, content platforms).

  7. Community-based

  8. Social networks and forums build engaged audiences and enable targeted marketing and commerce (e.g., social platforms that host ads and marketplaces).

  9. Fee/subscription-based

  10. Consumers pay to access content or services, often via recurring subscriptions (e.g., streaming services, digital news paywalls).

The mobile shift

Mobile devices and apps have become central to B2C strategy. Companies invest in mobile experiences to meet consumers where they are, streamline purchasing, enable personalization, and leverage push notifications and in-app features to increase engagement and retention.

B2C vs. B2B: key differences

  • Buyer type: B2C sells to individuals; B2B sells to organizations.
  • Purchase drivers: B2C often uses emotional or lifestyle appeals; B2B emphasizes specifications, ROI, and multi-stakeholder approval.
  • Sales cycle: B2C purchases are typically faster and lower-value per transaction; B2B sales can be longer and involve negotiated terms and volume pricing.
  • Pricing: B2C prices tend to be standardized for consumers; B2B pricing is frequently negotiated and customized.

Examples

  • Marketplaces and platforms: Amazon, eBay, Etsy
  • Intermediaries: Expedia, travel aggregators
  • Subscription services: Netflix, Disney+, digital news outlets
  • Social/community commerce: Meta (platform-based ads and commerce)
  • Commerce platforms: Shopify (enables small retailers to sell directly to consumers)

Conclusion

B2C remains a dynamic, consumer-focused model driven by convenience, personalized marketing, and technological change. Success depends on understanding consumer behavior, optimizing digital and mobile experiences, and evolving distribution and pricing strategies to meet shifting expectations.