B2B and B2C transactions are both forms of commercial transactions. B2B – stands for business-to-business – is a process that involves selling services or products to other businesses while B2C – which stands for business-to-consumer – is a process for selling services or products directly to the end consumers.
Different business systems have been designed over time to support both B2B transactions as well as B2C transactions.
These systems differ in scale, complexity, scope, and cost. That said, it’s important to get the right system for your customers and business.
Difference between B2B Transaction and B2C Transactions
In B2C, the price of most products and services are the same for consumers. However, in B2B transactions, the price point varies from one customer to the other.
A customer making a large purchase can negotiate to have a reduced price.
- Payment Mechanisms
Besides the payment amount, B2C consumers can use various means of payment that includes cash, credit or debit card or checks.
On the other hand, B2B transactions can sometimes be lengthy and involves placing an order, planning the logistics and issuing of invoices that are settled upon agreed tithe me.
- Purchasing Process
While B2C consumers buy products for their individual consumption and don’t take as much time in decision making, the case is different for B2B transactions as the products or services are bought for use in the company and therefore go through a rigorous decision-making process.
Other Differences Between B2B and B2C Transactions
- eCommerce Setup
It’s very much easier to choose a B2C eCommerce platform than it is a B2B one. Since B2B transactions are more complex, there is the ability to integrate an eCommerce system that allows for receiving orders, invoicing, accounting as well as record management systems.
Depending on your business, it’s important to choose an eCommerce system for your B2B transactions that can handle various functions.
In most B2C consumer purchases, the level of support needed by consumers is very minimal. However, when it comes to B2B transactions, the depth of ongoing support needed by the B2B consumer may vary depending on the type of purchase.
Regardless of the form, relationships with the customers must be properly managed.
Customer Relationship Management
When it comes to B2B transactions, it’s important that companies have customer relationship managers that can be able to assist and hand-hold their clients when need be; especially if they are regular clients. These relationship managers play a crucial role in ensuring the satisfaction of the customers.
This is one of the most efficient ways of retaining your B2B customers and generating more revenue for your business. Building relationships with key decision makers can go a long way in ensuring that your company stays in business.
Choosing a System
Remember, determining whether your business needs to have B2B transactions or b2c depends largely on your products and services as well as the positioning.
And as the B2B and B2C market continues to grow, choosing a payment solution for your B2B transactions can go a long way in differentiating your product and making it easier for your consumers to pay.