What is the difference between B2B and B2C?

1, the concept of different

B2B (Business to Business) is the exchange of products, services and information between businesses and enterprises through the Internet. Internet-based B2B is developing at a very rapid pace, according to the latest statistics, in early 2006 on the Internet B2B transactions have far exceeded the B2C transactions, in the next five years, B2B will reach an average annual growth rate of 41%.

B2C (Business-to-Customer) is one type of e-commerce categorized by the object of the transaction, i.e., e-commerce that represents business-to-consumer. This form of e-commerce is generally dominated by e-retail, which carries out online sales activities mainly with the help of the Internet. For example, it deals with a variety of books, flowers, computers, communication supplies and other goods.

2, the transaction mode is different

B2B, so that transactions between enterprises to reduce many transactional workflow and management costs, reducing the cost of business operations. The convenience of the network and the extension of the enterprise to expand the scope of activities, enterprise development across regions and across borders more convenient and cheaper.

B2C, business-to-customer, refers to the use of the Internet to carry out all the trade activities, that is, on the Internet will be the flow of information, capital flow, commercial flow and part of the logistics of the complete realization of the connection. In today's world, B2C e-commerce shows its great vitality in various industries with complete two-way information communication, flexible transaction means, fast logistics and distribution, and low-cost and high-efficiency operation.

3, different target consumer groups

B2B consumer groups are other businesses, while B2C consumer groups are individual consumers. Overall, B2B transactions are more complex, it can change the traditional trade in the one-to-one or one-to-many model, making it into a many-to-many model, and create a large number of buyers and sellers of merchants gathered online trading space.

Both buyers and sellers can not only find more trading partners, but also enjoy more convenient and standardized business services and obtain a good business environment.

4, the field is different

One is that the former sells goods to another merchant involves a bargaining negotiation process, whereas if the consumer object is an individual will not be involved in this process. This is the very reason why B2B first appeared in the form of selling finished products to merchants, as the prices of finished products are easy to set and describe to consumers.

The second is that the online retailer's system does not have to be merged with the individual consumer's system, but retailers selling to other merchants have to make sure that the two are compatible with each other in terms of communication.

Expanded:

B2B over B2C. p>B2B is faster than B2C because the development of B2B is more characteristic, the reasons mainly lie in the following aspects:

First of all, it is the overall business strategy and market positioning. B2B is oriented towards business users, and with the rising tide of the information economy, as well as the increasingly fierce competition in the market, the majority of enterprises seeking to do business through the network, to achieve the business information requirements The B2B is a new way of doing business, and it's a new way of doing business.

B2B can break the information blockage for enterprises, China has nearly ten million small and medium-sized enterprises, the enterprise scale is small, the source of information is small, and the development of e-commerce, undoubtedly gives them a rare opportunity. B2B business greatly reduces the transaction costs between buyers and sellers, and also helps to solve the problem of small and medium-sized enterprises sales channels.

The Alibaba website provides a platform for the exchange of business information, and on such a platform, companies are free to choose the information that suits them or publish information to gain market opportunities.

And the B2C business model of the majority of individual consumers, their daily consumption needs can be basically not through the network can be satisfied, for them, B2C should be inexpensive, free delivery, should be to spend the least amount of money to enjoy the best service, eliminating the cost of travel, meals, click at home, there will be someone to deliver to the door.

In fact, almost all of the B2C website in order to get customers, the price of its goods is really low, which is the reason why B2C e-commerce is losing money directly, because B2C in China is still only just started, its cost can not be too low. B2C e-commerce itself should pay more attention to the speed and personalized service, rather than the low price.

Secondly, there is also a gap between the two in terms of payment methods and credit system construction. In China, for a long time, in accordance with the provisions of the People's Bank of China, all enterprises must implement the bank funds to receive and pay. As a result, China's business-to-business bank payment system is relatively more developed, and security is also significantly better than the individual consumer payment credit.

In fact, B2C online shopping is the most convenient credit card payment, that is, the user in the bank account of the money, allocated to the e-commerce site's account, when the site confirms receipt, and then shipment. However, in our country, the bank transfer usually takes 24 hours, while in the world's most efficient Swiss banks, only 5 minutes.

The imperfection of the credit system is a serious constraint on the construction of the payment system. Compared with this situation, in the B2B mode, the settlement between enterprises to be more diversified, they can realize the payment through a variety of inter-bank notes, the security is relatively high.

In addition, online shopping procedures are cumbersome, customers are skeptical, merchants and customers do not trust each other as well as the security of the means of payment to worry about the formation of the B2C can not be a large area of promotion of the important shackles.

B2C is a great difficulty is stuck in the credit system is not developed on the ancient cloud: people do not have faith is not standing, but in the face of fierce competition in the market, some individuals and enterprises but the credit as a resource can be unlimited and squandered.

In fact, there is no essential difference between e-commerce and traditional business activities, because the factors that make up the transaction has not changed significantly, in the past the use of paper, and now the use of spreadsheets; counter transactions in the past, and now on the network transactions. Therefore, it is the unsound market credit mechanism seriously impedes the rapid development of e-commerce in the form of B2C.

In view of the current domestic B2C e-commerce quite unsound credit situation, some enterprises in order to ensure financial soundness has basically canceled the credit limit to customers, or through the membership system to customers to audit and inspection, the establishment of their own credit management system. However, due to the lack of legal certification links, the resolution of disputes when they arise remains complex and unpredictable.

Once again, the difference between the two is also reflected in the logistics and distribution.

The scale of B2B mode, no matter finished products, semi-finished products purchasing or product sales, is generally quite large, and thus, relatively more economical in costing.

For example, Kelong Group, whose total purchasing amount in a year is 2 billion to 3 billion yuan, has reached nearly 300 million yuan in the first half of last year through the online purchasing of E-link, whose current procurement is still practicing a two-track system, but will gradually transition to full online procurement.

And for the vast number of ordinary individual consumers of the B2C model, its biggest feature is personalized, not a large number of commodity transactions, such a small-scale commodity transactions in China such a large population, the development gap between the regions is huge, the transportation network is not developed in the specific national conditions, the cost of distribution for their distribution will be greatly increased, can not be in time to the goods of the possibility of a large number of people.

Lastly, but also the most important reason, lies in the government's policy to vigorously promote the promotion of B2B market has a broad space for expansion. China's informatization construction has been the focus of the government, the government has formulated the overall development goals and strategies of national informatization,

In this, the State Economic and Trade Commission has always believed that China is in the beginning stage of e-commerce, whether from the international development trend, or from the reality of China's need to develop China's e-commerce to promote the B2B business as the focus.

Baidu Encyclopedia - B2B

People's Daily Online - Integration with Traditional Industries Prompts B2B to Run Faster Than B2C