Business-to-Consumer (B2C)

Published Feb 4, 2023

Definition of Business-to-Consumer (B2C)

Business-to-consumer (B2C) is a type of business model in which a company sells products or services directly to consumers. That means, unlike business-to-business (B2B) or business-to-government (B2G) companies, B2C companies don’t have to go through any intermediaries like wholesalers or retailers. Instead, it can sell its products directly to the end users.

Example

A common example of a B2C business is an online retailer like Amazon. Amazon sells its products directly to the consumer without any intermediaries. That means the customer can purchase the products they want directly from Amazon without having to go through any other retailers.

Why Business-to-Consumer Matters

Business-to-consumer (B2C) is an important business model for many companies. It allows them to reach a large customer base and generate a lot of sales. Furthermore, it also allows companies to reduce their costs by eliminating the need for intermediaries. Finally, B2C also allows companies to build a direct relationship with their customers, which can be used to better understand their needs and preferences.