At its simplest level, B2C companies sell to consumers, while B2B companies sell to
businesses. Let’s take a closer look at both strategies and the key differences between them.
What is B2C e-commerce?
Business-to-Consumer (B2C) means selling to individual customers. Therefore, the sales process focuses on the needs of a single customer, and moving potential customers from initial interest to purchase is relatively straightforward. Sales cycles are shorter and more emotional.
What is B2B e-commerce?
Business-to-Business (B2B) means selling to other businesses. Businesses have multiple stakeholders, compliance requirements, and other factors that make the sales process more complex. Sales cycles are longer, driven by logic and rationality.
What are the Differences Between B2C and B2B e-commerce?
Differences in target markets and key decision-makers lead to distinct business strategies and technological needs. Let’s explore the differences between B2C and B2B e-commerce and the features expected from these platforms.
1. Target Market
B2C businesses typically have much broader target markets, while B2B businesses have more “niche” target markets.
2. Order Size and Volume
B2C companies generally have smaller order sizes at lower prices but higher overall sales volume. B2B brands typically handle larger orders or higher price points but have lower overall sales volume.
3. Decision Maker
B2C purchases are mostly made by individual consumers, while B2B sales involve multiple stakeholders or entire company departments.
4. Customer Lifetime Value (CLV)
With smaller order sizes and fewer repeat customers, B2C businesses usually have lower customer CLV, while higher customer retention rates result in B2B companies having higher CLV.
5. Customer Acquisition and Retention
With a broader customer base and lower CLV, B2C businesses often focus on customer acquisition, while B2B companies with smaller target markets prioritize retention and repeat business.
Features Expected from B2C and B2B e-commerce Platforms
These differences in business strategies and target markets are reflected in the key features desired from e-commerce platforms by each type of merchant. Let’s examine the core features typically included in B2C and B2B platforms.
1. User Interface
A B2C e-commerce platform needs a simple purchasing process for consumers, including intuitive site navigation, streamlined checkout, and the ability for customers to easily browse product catalogs. B2B software requires advanced features like user permissions, order management systems, account pricing, and business credit options.
2. Content Personalization
B2C companies require highly relevant and personalized experiences that appeal to consumer interests, while B2B brands need content and features tailored to specific user roles, such as managers or buyers.
3. Checkout Process
B2C e-commerce platforms need the ability for customers to check out as guests or create accounts with minimal hassle, while B2B companies require functionality for multiple accounts, budgets, compliance, and other requirements for business customers.
4. Overall Customer Experience
B2C brands must deliver a user-friendly and seamless customer experience across various touchpoints, while B2B companies need to facilitate the business decision- making process.
Targeting Both Markets Doesn’t Have to Be Difficult
If you are a B2B company looking to enter B2C, or vice versa, managing two separate platforms can seem overwhelming. The challenge is knowing you need the features mentioned above to compete in both markets. The only solution may appear to be two platforms, but that’s not the case. This is where a hybrid e-commerce platform comes into play.
Features of a Hybrid E-commerce Platform: Why a Hybrid Platform is the Next-Generation E-commerce Solution
Here’s why a hybrid e-commerce platform works best:
- Create Separate Portals
A hybrid platform can configure multiple separate customer portals. Having multiple e- commerce interfaces is critical for DTC strategies, as pricing can vary significantly. While pricing for consumers can be fixed, pricing for business customers is often negotiated based on purchase volume, length of business relationship, and other factors. By leveraging multi-site capabilities, you can customize your e-commerce sites for specific market segments with hybrid platforms.
- Maintain a Single Data Repository
Even though the target markets differ, the core information about your products is likely very similar or even identical. Creating duplicate content on separate e-commerce platforms is highly inefficient. A single platform with one data repository simplifies content delivery for your sales and marketing teams. Avoid the nightmare of maintaining two or more product catalogs with a hybrid e-commerce platform.
- Achieve an Omnichannel Customer View
With a single dashboard, hybrid e-commerce platforms enable marketing teams to gain a holistic view of their customers, both business and consumer. In the digital age, tracking interactions across all touchpoints and applications is essential to gain insights into the customer purchase process. Hybrid e-commerce platforms avoid data silos and fragmented analytics with a comprehensive omnichannel customer view.
- Future-Proof Your Business
The lines between B2B and B2C e-commerce are blurring. It’s not just B2B moving into DTC; many consumer-focused brands are also shifting to selling to businesses. A hybrid platform ensures e-commerce businesses are prepared for rapid changes in the market without needing to re-platform. You have the flexibility to adjust sales strategies, knowing your technology facilitates e-commerce for both types of markets. Don’t let your e-
commerce platform hinder your digital adaptability now or in the future.
Keep Up with the Market Ǫuickly with SAP Commerce Cloud
SAP Commerce Cloud (originally known as SAP Hybris) is a cloud-native omnichannel commerce solution for B2B, B2C, and B2B2C companies. By unifying all touchpoints (online, mobile, POS, call center, social, print) on a global scale, it meets the unique needs of each customer by delivering personalized experiences from acquisition to retention. Contact us today for more details.
