B2B and B2C Business Models | Business Ingenious

b2b business model

The environment we live in is always changing. Do you remember when businesses had physical and mortar locations as their primary focus? There are companies like Amazon that have entirely moved their operations online and made a significant investment in the e-commerce industry.

No matter what kind of firm it is, it needs a strict business model to achieve its objectives. The two most common business models that apply to both offline and internet enterprises will be discussed in this article.

1. B2B Model-Businesses Partnering With Each Other 

It is often believed that clients and employers are mutually exclusive—the client is the consumer, while the employer is the supplier. The B2B business model challenges these presumptions by introducing us to the idea that corporations may behave just like consumers.

An example of a B2B business model is one in which two or more firms trade goods and services. This occurs frequently in the technology sector; the Apple iPhone is a well-known illustration. Under their trademark, Apple manufactures iPhones, but Samsung supplies various chipboards. Despite being considered rival businesses, there is a business-to-business relationship that benefits both.

The majority of business-to-business (B2B) models give both companies comparable negotiating leverage and some form of mutual benefit. Additionally, they have legal counsel and professional employees who are constantly involved in negotiations with other businesses.

Diversifications in B2B Business Models

 As you might have guessed, a model as complex as B2B ought to be broken down into several different categories. They fall into three categories.

  • The Supplier-Centric Model

 In a supplier-centric model, a supplier creates a marketplace to sell customized solutions to various businesses. The majority of them set prices for their solutions based on what the customer or buyer wants.

  •  The Buyer Centric Model 

This type of business model is most popular among large corporations that engage in large-scale purchases and have a large purchasing capacity. To accept quotations from a variety of vendors, the company in question sets up a portal, mostly online. After that, the sellers approach the company with quotations, and after conducting an in-depth analysis, the company selects a seller that they believe will be profitable.

  • The Intermediary Centric Model

Intermediaries provide a common platform for Buyers and Sellers to interact; these interactions can take the form of transactions or straightforward communication. Their primary objective is to profit from these associations, so they maintain a database of buyers and sellers.

Example of a B2B business model:

Apple and Samsung’s collaboration on the iPhone is a great illustration of the B2B business model, as previously mentioned. Apple relies on Samsung to supply its processor chips, which are found in the most recent iPhone models.

Despite their rivalry, Samsung and Apple have stuck with the B2B model because Samsung can meet Apple’s enormous demand for processors and Apple pays a significant sum for each processor it delivers.

Let’s move on to the next common type of business model now that you are familiar with the B2B model. 

2. B2C Model – How Businesses Profit from Customers

The B2C business model is one in which the company sells directly to customers. After producing a finished product with a fair price, these businesses market it to the general public. Consumers are more familiar with B2C models because they interact with and are a part of this model because it is closer to the end user. Recent examples include Amazon and other online retail stores.

Diversifications in B2C Business Models 

The primary objective of a B2C business model is to connect with customers and sell products to them. To accomplish this, B2C has been separated into various categories according to the kind of audience and the kind of targeting that is used to reach them.

  • E-Retail 

E-Retailing is the most recent fashion. Nowadays, the majority of customers can be reached online, which is both the cheapest and fastest method. Realizing this, businesses have begun establishing websites and marketing campaigns to reach and sell Internet users’ products.

  • Brick-and-mortar retail 

You are all familiar with traditional brick-and-mortar stores, where you enter, choose your items, pay at the counter, and pick them up.

Now that these businesses have realized the potential of the Internet, they have started putting up websites for their shops to reach a wider audience.

It is a website that gives several businesses a place to display their products online. The owners of the website charge sellers a small fee to display and sell their products.

Example of a B2C business model

Amazon has successfully implemented the B2C business model and is a consumer-focused company. They are the best online store because of their large inventory and large user base.

With their array of customer support agents and product return policies, they have mastered customer satisfaction and helped retain customers.

B2B marketing campaigns emphasize the value of a product to entice other businesses to choose it. Because they are aimed at a more business-oriented audience, these campaigns are not as informal as they could be.

B2C marketing campaigns have an emotional appeal because they are aimed at the general public. These campaigns include witty lines, catchphrases, or jingles because the audience is more receptive to a casual approach to advertising.


Since there is no real alternative to strong business models, successful businesses will continue to exist. It’s all about how well you use them. If someone were to start their ecommerce website, which model do you think would be more appropriate? Contribute your ideas.