Definition

Business-to-consumer (B2C) refers to the type of commerce and business relationship in which companies sell products or provide services directly to individual consumers. In this model, the end customers are the ultimate target market for the goods or services offered. 

What is business-to-consumer?

In a B2C model, businesses market and sell their products or services directly to individual consumers. This can be done through physical storefronts, online marketplaces, or other direct-to-consumer channels.

B2C companies prioritise understanding and meeting the specific needs and preferences of individual consumers. Customer feedback and satisfaction are vital for building brand loyalty, which is crucial for success in this type of commerce.

Example of business-to-consumer

XYZ Electronics is a company that designs and manufactures consumer electronics, including smartphones, laptops, and smart home devices.

1. Customer purchase:
   • A consumer, let’s call her Emily, visits XYZ Electronics’ website, learns about SmartGadget X, and decides to make a purchase. She adds the smartphone to her online shopping cart and completes the transaction by providing her payment details.
2. Delivery to customer:
   • Emily receives the SmartGadget X at her doorstep. The product is exactly as described, and XYZ Electronics includes a user manual and customer support information in the package.

In this B2C example, XYZ Electronics directly sells its consumer electronics product (SmartGadget X) to individual consumers through its online store.