B2C-Business
to Consumer
Company-to-consumer or B2C business model is a model in
which a company sells a service or product directly to a consumer.
Well-known examples of B2C companies include Amazon,
Walmart, and other companies where individual customers are end users of a
product or service.The B2C companies are also known as "letter-spacing:
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B2C, a business model, typically involves a higher volume of
customers, but revenue per customer is lower than other business models because
it has shorter sales cycles.
There are five different models that B2C companies use to
transport their products digitally.
1. Direct
sellers: One of the most common types of B2C that sells a product directly to
consumers.
This business model includes small online businesses, as
well as large retailers such as Microsoft and Apple that sell only in-house
products.
2. Online
brokers: They do not own the products sold on their site, but they put sellers
in direct contact with buyers and usually make a profit by taking a share of
the transaction.
B2C E-Commerce giants such as eBay and Amazon are examples
of online intermediaries.
3. Advertising-Based
B2C: As more and more people consume online media, advertising-based B2C is
becoming widespread.
In this model, a company buys advertising space on a
platform that receives a large volume of traffic, such as YouTube or Reddit.
Targeted advertising uses criteria such as internet
searches, displayed content, and demographics to strategically place ads in
front of promising customers.
4. Community-based
B2C: Takes advantage of online and like-minded communities that occur on media
platforms and beyond.
Since most of these communities are formed around a common
area of interest or physical location, companies can more easily identify
promising potential customers.
5. Fee-based
B2C: In this business model, to access the company's content, you need to:
6. Subscription
services such as Netflix, Hulu and Lynda are prime examples of this model.
7. How did
the B2C business model become so widespread?
Through the Internet, these B2B businesses have led to
simpler B2C systems that customers can purchase directly from manufacturers.
This financial regulation has led to the B2C model becoming
the modern standard, eliminating the middle man.
As the early growth of the Internet gained momentum, more
and more stores began to do business directly with consumers through their
websites.
Especially sites like Amazon were getting a lot of traffic
from stores.
Many physical retailers have been forced to close their
doors permanently, which has essentially pushed B2B intermediaries to
extinction.
The B2B model is still used, but most often it applies only
to businesses that produce products specifically for use by other businesses.
For example, manufacturers of industrial or medical
equipment still use the B2B model.