Since online commerce platforms burst into the scenes, it has garnered a lot of success. Individuals around the globe can now acquire their desired goods from the comfort of their homes. E-commerce platforms are designed with payment gateways that enable users to initiate payment via their mobile or any other device without stress. Through the advent of e-commerce platforms, sellers have been able to reach a wider audience across the globe, opening up channels for greater profit margins.
Understanding the e-commerce marketplace structure
An e-commerce marketplace is a place or web platform that constitutes different brands with small or large collections, shops, and vendors showcasing their goods for purchase. The e-commerce platform owners are responsible for attracting customers while the sellers handle all transaction-related activities and shipping. Much popular eCommerce platforms like Amazon, eBay operate through the eCommerce marketplace model, and it has yielded massive results over the years.
E-commerce has proven to be a unified marketplace throughout its existence. However, the involved brands are charged with the implementation of modalities capable of improving the performance of their goods in eCommerce. There are two proven modes in e-commerce for businesses; B2B e-commerce, and B2C e-commerce.
What is B2B e-commerce?
B2B means Business-to-Business, and B2B e-commerce describes a business transaction that occurs between two companies. In this e-commerce mode, wholesalers, manufacturers, retailers, and other forms of resellers are the recipient of the sale.
What is B2C e-commerce?
B2C means Business-to-Consumer, and B2C e-commerce is used to describe the commercial transaction between a business and an end consumer. It occurs solely with users that acquire products for personal use.
Key differences between B2B and B2C
Audience Profile
B2B purchases are productivity inclined. The company acquire goods based on a pre-defined budget. Oftentimes, the acquired goods are related to an ongoing project, making the purchase a planned activity. B2C transactions are utility inclined. Consumers buy based on emotions, needs, or desires. Thus, the quantities acquired by a different audience is often different.
User Interface and Experience
As earlier established, B2C purchases are often based on emotions and desires. Consequently, the user interface of a B2C eCommerce website is designed to further stimulate the emotions of users; explaining the stunning visual interface of B2C eCommerce websites. B2B websites, on the other hand, have a more formal outlook. This interface gears towards details and ease-of-access. In simple terms, B2B buyers expect a more educational website experience that may include product demo or important use cases.
Brand Reaction
For B2B e-commerce, business to brand loyalty plays an integral role in the purchase. Long term commitment triggered by similar values or experience guides the purchases. Buyers in B2C e-commerce are often random in their selection. Brand plays a lesser role in the selection of a final product as there is a large pool of products to select from.
The Pricing Model
B2B e-commerce operates a bulk pricing model. The bulk pricing model involves a high quantity output tagged with a relatively low price. The price increases as the number of order bulk decreases. In a B2C e-commerce platform, pricing is tagged per product. Pricing is deployed consistently depending on the product type. The only changes in prices come from discount sales, clearance sales, and special promos.
Operating the Best-Fit for your e-commerce business
Deciding the best-fit modality for your e-commerce business is vital to your overall operations. Understanding the differences between B2B and B2C e-commerce platforms guides the user interface and digital experience of the website. The distinctive highlights of the necessary features of B2B and B2C help your e-commerce business reach the target audience.
