B2B and B2C e-commerce: differences and opportunities

A look at the differences in approach between B2B and B2C e-commerce and the most advantageous opportunities for your business

The e-commerce marketplace has become increasingly popular in recent years, evolving and differentiating itself into two key models: B2B and B2C (business-to-business and business-to-consumer). According to MarketWatch, the B2B segment could reach a turnover of 13.6 billion dollars by 2027, with an annual growth rate of 8.5%, while in the next ten years it’s believed B2C could achieve an annual growth rate of 9.5%.

These are significant statistics for companies aiming to sell online. However, it’s important to remember that being present on digital platforms is no longer enough in itself: different business models require diversified marketing strategies, where the personalisation of products and services is a strategic differentiator. With this in mind, understanding the main differences between B2B and B2C e-commerce and what opportunities the two market segments can offer is essential for any company that wants to succeed in online commerce.

· Statistics predict that B2B e-commerce could reach a turnover of 13.6 billion dollars by 2027, with an annual growth rate of 8.5%.

· It is predicted that within the next ten years, B2C e-commerce could achieve an annual growth rate of 9.5%.

B2B and B2C opportunities and considerations

One of the main factors that has favoured the growth of the B2B e-commerce segment in recent years is technological innovation: automation and the advent of digital commerce have helped optimise the efficiency of corporate strategies as well as reducing expenses, enabling organisations to reach large audience faster and improve interaction with suppliers and partners.

Meanwhile, although product quality plays a central role in B2C e-commerce, consumers seem increasingly influenced by other aspects, particularly shipping costs and speed of delivery. Both models offer interesting opportunities and require different marketing approaches. So what should you consider when developing your e-commerce business strategy?

Customers. The main difference between B2B and B2C is in the nature of their target customers and how this affects the sales process. If you are selling to companies, your volumes could be much higher, involving more complex product searches and a thorough knowledge of wholesale practices. This requires sophisticated marketing strategies, which must include in-depth information aimed at establishing a relationship between the company and the customer.

In the case of sales to private individuals, the focus should be on creative and personalised content that will capture their attention and respond to individual needs. Accurate and detailed content will improve the visibility of your offer on search engines too.

Sales processes and products. The sales processes of B2B follow stricter standards and supervision procedures, so it’s important that your services and products maintain a high level of quality. Since these are mostly large-scale purchases, which require the involvement of various players in the sales process (suppliers, wholesalers and manufacturers, as well as IT, marketing and human resources teams), much longer lead times and larger investments are required, in particular for the use of elaborate support teams, ranging from the call centre to the FAQ page, product demos and videos.

There’s less complexity involved in B2C e-commerce transactions, which often conclude in a single phase and therefore require less investment in customer assistance teams and online product specifications. Instead an FAQ page and chatbot service might be enough to handle returns requests or deal with any customer queries.

If it’s true that improving customer service and offering efficient customer assistance 24 hours a day, 7 days a week, helps build loyalty, it is also important to offer the customer the chance to proceed independently. According to a report by McKinsey, 76% of B2B shoppers find it helpful to interact with someone while researching a product or service, while only 15% are likely to interact while making a second purchase. Providing recurring subscriptions or one-click reordering can be a useful strategy for improving customer satisfaction. Another essential element is flexibility: a periodic review of the effectiveness of your processes allows you to address any weak points and can help build customer loyalty.

Prices and payment experience. A higher volume of goods leads to lower prices: in sales to companies a minimum order amount is usually set so that customers can benefit from a reduced price, unlike sales to private individuals, where it’s more usual to purchase individual products or services.

This is also reflected in differing payment methods. B2C orders are often paid for by credit or debit card while in the B2B market, where payment times tend to be longer, it is essential to provide the user with additional options, such as bank transfers and invoices that integrate wholesale options.

Shipping options are a crucial deciding factor in all e-commerce transactions. Customers will always rely more on suppliers who offer safe shipping, even at a slightly higher price. This is why its important to provide clear information on your shipping, payments and returns policy. Offering maximum transparency on pre- and post-sales procedures can be crucial for the success of sale.

Delivery. Another substantial difference between B2B and B2C e-commerce is the delivery options: while individuals expect to receive orders directly at home, companies prefer to collect the products or choose to have them delivered to their commercial address. Working with companies that specialise in logistics services allows you to optimise delivery systems and automate some of the more complex aspects of the supply chain, which means you can offer shipment choices and levels of service tailored to the needs of each customer.

Whether you operate in the B2B or B2C marketplace, the goal is always to offer the best possible service to the customer, taking advantage of every contact opportunity to highlight your brand and showcase what makes it unique and memorable. Customer expectations are growing day by day and this means that companies must seize every opportunity to grow and evolve to ensure the best possible customer experience.

Mail Boxes Etc. partners with companies, entrepreneurs and craftspeople with a wide range of end-to-end professional e-commerce solutions for optimal shipment management, supporting the sales process and delighting customers.

MBE solutions for the digitisation of shipping and logistics allow you to optimise the customer journey and improve their shopping experience, helping you unlock new business opportunities and offering a competitive advantage in the face of challenges and changes in the market.

Contact us to give your business that extra edge.