What is B2C?

B2C (Business-to-Consumer) is a retail model in which businesses sell products or services directly to individual consumers, rather than to other businesses. This model covers a wide range of companies, from small local enterprises to large international brands, and includes both physical shops and online retailers.

As B2C companies deal directly with end customers, they have greater control over the customer experience. This direct relationship provides access to valuable customer data, enabling them to deliver highly targeted marketing campaigns and refine their product development. In the digital space, B2C brands can build customer loyalty by creating online communities around their products or services. They can also use digital marketing strategies, such as search engine optimisation (SEO), to increase visibility and reach a broader audience.

Business-to-Consumer vs Business-to-Business vs Direct-to-Consumer

While the terms B2C and DTC (direct-to-consumer) are often used interchangeably, some view DTC as a specific subcategory within the broader B2C model. DTC typically refers to brands that manufacture and sell their products directly to consumers, often bypassing traditional retail channels.

It’s also important to distinguish B2C from B2B (business-to-business) commerce. In B2B models, companies sell products or services directly to other businesses, such as software-as-a-service (SaaS) providers selling platforms to organisations, rather than to individual consumers. In contrast, B2C focuses on transactions between businesses and the end consumer, whether through online platforms or physical retail spaces.