When it comes to e-commerce, there are countless opportunities for companies across a wide range of industries to operate and reach their target audiences.
Within this wide range of possibilities, we can highlight B2B companies—those that sell to other businesses—and B2C companies, which sell directly to the end consumer.
While B2B e-commerce can be seen as the new face of online wholesale, B2C is retail—as if brick-and-mortar stores had taken on a new form and moved online.
Regardless of the sector, e-commerce is booming in Brazil and continues to break records. In 2021 alone, for example, the sector generated more than R$161 billion across the entire country.
This figure is 27% higher than in recent years, showing that even after restrictions on social distancing were eased to prevent the spread of the coronavirus, online shopping will continue to be on the rise.
Anyone who thinks this sector will cool off over time is mistaken, since 88% of Brazilians admit to shopping online at a wide variety of stores, buying everything from clothing to building materials, groceries, and pharmacy items.
With that in mind, it’s essential to gain a deeper understanding of this landscape and how both B2C and B2B companies sell and operate in the digital space. Keep reading to learn more.
Differences between B2C and B2B e-commerce
To understand the differences between B2C and B2B in e-commerce, it is important to realize that, beyond just the different target audiences, the behavior and purchasing journey of each are also distinct.
However, both operate online and can use similar marketing, such as creating rich content, maintaining a social media presence, investing in sponsored links, and more. Learn more below.
B2C e-commerce
B2C (business-to-consumer) e-commerce is the type most people are used to seeing online. These are stores that sell directly to the end customer, who usually buys for themselves or as a gift.
Although there is potential for customer loyalty—especially among companies that sell services or non-durable goods, such as food—customers do not always shop with the same frequency or return the following month to restock their pantry, for example.
The average purchase amount tends to vary, as some people tend to buy just one item, while others want to buy entire collections.
Last but not least, in the B2C sector, there are a lot of impulse purchases, unlike purchases made to replenish inventory.
Examples of online transactions
B2C online transactions can involve a wide range of products and services, and you’ve probably come across a store of this kind while browsing the internet.
Some prime examples of B2C e-commerce include clothing stores, electronics retailers, service providers, food retailers, delivery services, and retailers of personalized or made-to-order products.
They generally have fixed prices that cannot be negotiated and stand out for their ease of purchase,
A variety of payment options and fast delivery, which can be same-day for certain orders.
B2B e-commerce
B2B (business-to-business) e-commerce, on the other hand, focuses on selling to other companies. As such, these are not end-consumer products that can be purchased in small quantities.
These are therefore large-scale purchases intended to replenish an organization’s inventory or ensure its full operation.
In addition, the B2B sector features much higher customer loyalty and scheduled purchases, which, given the nature of this type of business, can be negotiated and paid for in different ways, depending on the customer.
Companies that sell to other businesses typically have significantly larger inventories than B2C retailers, and they also have more robust management systems in place to prevent any potential issues.
Examples of online transactions
The main examples of online transactions in B2B e-commerce include the sale of raw materials to companies and wholesale organizations, the sale of automation software, and the licensing of certain services.
It’s interesting how such different types of businesses can operate in the same environment. So, why not stick around and read more about the shift in education toward e-commerce: from offline to online.
