B2C

Back then, the B2C model was quite limited. People mostly set up offline stores with conventional products or services, such as restaurants, salons, clothing shops, or cinemas. Nowadays, the progress of technology has shifted the way many brands open new businesses and approach their target audiences. Read more about this until the last paragraph!

What is B2C?

A B2C model is a type of business where a company sells products or services to end consumers. Usually, the transactions of the scheme are much simpler than those of the B2B one, which sometimes requires a third party. With direct sales, brands can offer competitive pricing to all consumers. This is because the brands won’t need to undergo negotiation steps that may lower the end pricing.

In terms of marketing, companies under the B2C model typically rely on their brand powers. This means they create marketing strategies that evoke certain emotional bonds with the end buyers. The term itself first appeared in the late 1990s with the stardom of e-commerce Amazon. Its appearance has revolutionised the way people do business.

While using the platform, many could start selling online to their customers. This has since prompted big labels to set up their online stores. Nowadays, the types of businesses have grown. You find that online streaming entertainment platforms, such as Netflix, fall under the B2C business model. It sells films, series, and mini-series to individual viewers through various pricing schemes.

Types of B2C

Since the birth of the Internet, B2C models have been growing. It opens up more room for finding new ways to earn money without having to spend big capital. E-commerce is the answer for micro and small business enterprises to start selling products or services. It’s true that this scheme typically doesn’t involve a large scale of product sales.

Most e-commerce sellers are individuals as well or a group of some people. However, the small business size is the best gateway for balancing economic opportunities for all. Below is the list of common B2C schemes that you can try. Or, as end users, the list hopefully adds your insight on the topic.

1. Direct selling

In this method, the sellers directly offer their products or services to the consumers using online platforms or opening the physical stores. Both big companies and home industries apply this approach. In other words, they choose social media platforms and e-commerce sites to reach prospective customers. Some make their websites to polish their brand values and allow business transactions.

2. Online intermediary

Have you heard of Etsy.com? It’s one of the B2C models that acts as a platform enabler that connects producers and potential buyers in the art and handicraft industry. Trivago.com is another good example of this scheme. The websites get commissions from every successful transaction. The website owners don’t have real products, but they play vital roles in the whole chain thanks to their platforms.

3. Ads-based website

The other B2C model is any website that earns money from ads after their URL addresses generate high traffic. The higher the number of traffic, the pricier the ads are. However, other companies will still be willing to pay big money to place their ads on these websites. The content of the ads can be diverse, ranging from introducing a brand to selling products to the visitors of the site.

4. Community-based

Online forums are the best places for kicking off your B2C model. Jump into communities that relate to your brands. Facebook, Reddit, and Pinterest are among the places where you can find devoted enthusiasts for products. From fashion to gaming, there are digital or even offline forums that have become the go-to places for their members. In conclusion, you will find more prospective buyers on such platforms.

5. Fee and subscription

The last B2C model is currently popular with the growing demand for online entertainment using smartphones. Most of the players of this type are in the media and entertainment sectors. They offer free and subscription schemes for would-be users on a monthly or yearly basis. Besides Netflix, other famous examples are Hulu, which is used for TV shows and movies, and Twitch, which is used for gaming.

Benefits of B2C models

The B2C scheme offers benefits for label owners. As hinted above, the method allows anyone to start becoming an entrepreneur with a possibly low budget. They can promote, offer, and distribute their products or services using online platforms that are available free of charge. The second one relates to data collection.

Using the B2C scheme makes it easier for business players to gather and analyse data from their audience. They can obtain full data, like email home addresses and contact numbers, and even analyse their purchase attitudes. Therefore, all of these will benefit them to create the next products or services that better meet their needs.