B2C: Definition of Examples, Characteristics and Types

B2C is one of the most common sales models used by companies. B2C allows companies to offer their products and services directly to consumers.

B2C has a consumer focus. With B2C, companies can provide the best service to consumers.

So, what is B2C and what are its characteristics and types? Check out the answers in the following article.

Definition of B2C

B2C stands for Business-to-consumer. Quoting from investopedia, B2C is the process of selling products and services directly between companies and consumers, as product users.

This type of sales model does not involve wholesalers or other intermediaries as parties who market the product. You can easily find this sales model when shopping at markets, eating at restaurants, buying clothes at malls, and other similar activities.

Apart from being used in offline transactions, B2C can also be used in online transactions. Some examples of B2C sales, for example shopping at online shops using e-commerce.

B2C characteristics

If we look further, B2C has certain characteristics. As for some of the characteristics of B2C, among others:

Open

The B2C sales model is open and unlimited. That is, any information about products, both goods and services offered, can be widely disseminated in the community. This openness allows the products offered to reach all consumers.

Transactions Done Simple

Transactions carried out on the B2C sales model are also simple. Just like buying and selling transactions in general, in the B2B sales model, companies act as providers of goods and services needed, while consumers only have to pay to get them.

In this model there are no complicated transactions because the company focuses on the relationship between business and consumers. However, not all transactions occur based on the relationship between business and consumers.

On Demand or On Demand

Demand is the desire or ability of consumers to buy a product at a certain price at a certain time. The B2C sales model, of course, also always adjusts to consumer demand.

Has Tough Competition

The B2C sales model is usually used by companies that produce both goods and services needed by consumers. Because of the high demand, of course, competition between companies will be more stringent. This is because this type of business encourages many companies to offer similar products and services.

B2C Types

B2C is divided into several types that are commonly implemented by companies. The types of B2C that are most commonly implemented are as follows:

Direct Seller

Direct sellers or direct sellers are the most widely used type of B2C. This type is not only used by large companies, but also used by various home businesses.

Direct sellers usually manufacture their own products and sell them without third-party intermediaries. Usually, direct sellers also utilize various online platforms to sell their products online.

Online Brokers

This type of B2C usually does not produce its own products, but only provides a platform that brings product owners and buyers together. Generally, intermediaries are online to make it easier for buyers to choose the desired product.

After an agreement has been reached between the intermediary and the buyer, the product owner will prepare the product and send it to the buyer. One example of an online intermediary is a dropshipper.

Advertising Based

One of the other types of B2C is a business that sells products to consumers based on advertising. Usually, this type of company is tasked with creating a variety of interesting content to increase visitor interest or website traffic.

Companies can use high web traffic to sell ad slots which can be filled with product information, both goods and services from sellers who advertise. The higher the traffic, the more expensive the advertising costs are set.

Community Based

Community-based B2C usually allows companies to sell products to a community of like-minded people and interests. The community itself is a forum for its members to share information.

Fee Based

Finally, fee-based B2C types are commonly used in services that require consumers to subscribe to enjoy the products or services provided. One example of this transaction model is subscriptions to streaming platforms such as Netflix, Disney Hotstar, Spotify, and so on.

So, that's a complete explanation of B2C that DailySocial.id has summarized for you. B2C is indeed popular today because it offers various advantages because it has a sizeable market potential.