Knowing Understanding, Differences B2B And B2C Accompanied By Examples In The Business World

Business illustration (Freepik/gpointstudio)

YOGYAKARTA In the business world, it is known as B2B and B2C. In general, B2B stands for Business to Business, while B2C stands for Business to Customer. So what is the understanding of each of these terms and what are the differences?

Business to Business (B2B) is a sales model or transaction that occurs between business people and other business people. This means that this transaction occurs between business people, either individuals or between companies or groups.

Meanwhile, Business to Consumer (B2C) is a sales model or transaction that occurs between business people to consumers or end users.

Although both can be done electronically and physically, B2B and B2C have a number of differences, namely as follows.

Although not all, product specifications are usually different. Products sold to the company have specifications that are adjusted to the next production process. Meanwhile, the specifications of B2C products are usually finished products.

The quantity of goods traded in B2B is different from that of B2C. Because B2B is a transaction made for business purposes, of course the quantity of goods will be far apart. For example, you are a paper seller. To publishers or book printing, you will sell 100 banknotes of paper, while to individual direct customers or small groups, usually only a fewrims.

Because the product specifications and quantity of the product are different, the price set is also different. This condition is certainly very common in business. For example, you sell 10 thousand rim paper to printing companies at a price of IDR 10 thousand per rim. Meanwhile, the price set for end users per rim is IDR 50 thousand with retail sales quantity.

The target market targeted in the two transaction models is also different. B2B is more targeted at other companies that are related to the products offered. For example, you are the owner of a car engine company. You will certainly market the product to the car manufacturer that conducts the assembly.

The amount of purchases or transactions that occur in B2B and B2C is also different. The difference in transaction value is due to many factors, one of which is the quantity of goods traded. For example, you sell rubber basic materials to sandals companies. Of course, the quantity of goods is more than the quantity of sales to individuals.

The marketing model of B2B and B2C is certainly different. The marketing method carried out in B2B and B2C is different because the consumers are different. For example, you can peddle roadside laundry services by installing small billboards to achieve end users as your customers. As for the company's needs, you must market services with a special approach.

The level of competition in B2B and B2C is also different. Business competition in B2B is usually lower than competition in the B2C business. In B2B, it is usually filled by senior businessmen who sell their products to certain companies.

The capital needed in the B2B and B2C businesses is also very different considering the quantity of the product is also different. For example, you need a large capital to produce wheat to a cake printing company whose grain needs are very large compared to individuals.

That's information related to differences between B2B and B2C. To get other interesting information, visit VOI.ID.