Different Business Models
Business-to-business (B2B):
It refers to business between two companies. It could be a transaction (of products or services) between a manufacturer and wholesaler, a wholesale distributor, and a retailer. For instance, a company might supply the raw materials to another company required to make a product. Unlike B2C, B2B does not directly involve consumers.
Examples: Alibaba, Indiamart, Amazon (both B2C and B2B), Walmart
Business-to-consumer (B2C):
It refers to selling goods or services directly between a business (organisation) and the consumers who will ultimately use them. The majority of the companies that sell directly to consumers, without the involvement of any middle person, are referred to as B2C businesses. This stands in contrast to business-to-business (B2B). Most e-commerce firms use the B2C model.
Examples: Amazon, e-Bay, Flipkart, McDonald's
Direct-to-customer (D2C):
It refers to a business model where a company sells and delivers its products (manufactured by them) or services directly to the final consumer. These companies use independently owned sales channels, such as an outlet, showroom, or internet store, to offer their goods directly to customers. Most D2C businesses outsource all the outbound logistics to 3PLs (third-party logistics).
Examples: Lenskart, Mamaearth, Sugar cosmetics, Boat
B2C refers to any enterprise that sells goods to consumers. It makes no difference where the company purchases or manufactures the product from and resells it. D2C is a subset of B2C.
All D2C models are B2C, but not all B2C is D2C.
Consumer-to-Consumer (C2C):
It refers to the selling of goods or services between two consumers. It enables consumers to trade with each other (usually in an online environment). Auctions and classified advertisements are usually the methods to implement C2C. A third party usually handles these transactions by providing an online platform.
Examples: OLX, e-bay, Quikr
Consumer-to-Business (C2B):
It refers to consumers selling products, and content or providing services to businesses, in contrast to the traditional B2C model. It also includes user-created blogs, videos, and social media posts that assist a business in completing particular tasks and achieving set objectives. Although It is the least widespread among other business models, it has evolved more recently.
Examples: Google AdSense, Shutterstock
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