Maria says that across the two platforms, The product descriptions are somewhat different, as we are talking to different people. Did you know an average of 73% of sellers sell through an ecommerce or online sales portal? The vast majority of B2C and B2B buyers spend their time on similar channels. B2B buyers are producers, resellers, governments, and institutions. The untapped market in this region acts as a popular destination for international brands and web shoppers around the world. According to Forrester, 59% of buyers prefer to do research online instead of interacting with a salesperson because reps push their sales agendas rather than solving the problem. Individual customers purchase products for themselves. The global business-to-business e-commerce market size is estimated to reach USD 20.9 trillion by 2027, expanding at a CAGR of 17.5% during the forecast period. Target audience B2C retailers tend to have a broad target audience in mind. Business customers use large value orders as a bargaining chip. Last year, the online sales that took place on B2B ecommerce sites, log-in portals and marketplaces increased by 18.2% to $1.3 trillion from $1.1 trillion in 2018. Copyright 2023Salesforce, Inc.All rights reserved. Currently, you are using a shared account. Furthermore, urbanization and smart city development in developing countries have contributed to the westernized lifestyle, which is further changing the shopping pattern from traditional to online. Youll need an ecommerce platform like Shopify Plus to distinguish between the two. Convenience is the major factor driving the growth of the overall online shopping industry. The increasing use of social networks is further driving the demand for online purchasing of various products and services. The priority in B2C campaigns is to emotionally connect with the customer and motivate them to buy. In a piece highlighting the advantages of B2B ecommerce, Aaron Orendorff revealed that B2C averages $147 per order while B2B averages $491. Many B2B buyers have very tight parameters around the purchases they can make. Alternatively, B2B is presenting to a smaller audience who typically share a common goal, and therefore require more tailored sales and marketing strategies. Founder Maria Boustead says that on Po Campos B2C site, most people just buy one or two things. Free business intelligence platform with subscription, 4. The B2B ecommerce market is valued at nearly double that of the B2C market ($6.8 trillion vs $3.99 trillion in 2021). (Statista, 2020) Experts expect that the global B2B ecommerce market sales will hit $12 trillion by 2020. Type of customer Businesses operating B2B eCommerce storefronts target other businesses online whereas B2C organisations target consumers. It has evolved amid a busy lifestyle and an overabundance of options available to shop from the comfort of home. In this guide, we've discussed seven major differences between B2B and B2C ecommerce businesses. An increase in mobile transactions and internet banking is expected to drive retailers segments over the forecast period. Who are the key players in the B2C e-commerce market? For example, a B2B brand might only target ad agency owners or finance VPs at tech startups. Examples of business or B2B buyers are producers, resellers, governments, and institutions. Some key players operating in the B2C e-commerce market include Alibaba (China), Amazon.com, Inc. (U.S.), and eBay. Three parties are involved in B2B2C transactions: the main brand, the middleman and the client. A B2B company might sell office supplies, software, or paper to other businesses. MEA and Latin America are expected to register considerable growth during the forecast period. In light of the recent coronavirus (COVID19) pandemic, B2C e-commerce platforms experienced a steep demand for essential goods products such as groceries, personal care products, and bathroom essentials. Use Ask Statista Research Service, The source made the following note: "For 2018 there was a change in the data collection method from a paper questionnaire, to an online electronic questionnaire. The B2B Market Characteristics - Larger, more extensive, more complex. Apparel websites aided in reducing rush at stores, increasing the reach of retailers, and allowing "shop from anywhere" to the consumer with a hectic work schedule. Thus, this is . China's internet-based portion of retail deals rose from 19.4% to 24.6% between August 2019 and August 2020. B2C businesses tend to offer customer service while B2B companies offer account management. Accessed January 18, 2023. https://www.statista.com/statistics/284278/e-commerce-sales-via-website-in-the-united-kingdom-uk-by-b2b-and-b2c/. And with a Forrester Report stating that 83% of B2B businesses expect to increase their ecommerce sales over the next three years, its also an opportunity to grow. Credit card payments direct from checkout can still be relevant in the B2B sales process, but B2B orders can get quite largeand have long payment terms. B2B spending on advertising in the US exceeded $6 billion in 2019. Brandon Chopp, digital manager for iHeartRaves, says, Since B2B buyers are typically looking for more complex products, its important to provide detailed product information on your website. As per the United Nations Conference on Trade and Development (UNCTAD), in 2017, the global e-commerce sales grew 13%, hitting an estimated $29 trillion. Copyright 2023 . B2B ecommerce used to be a simple thing: businesses would just put up a website and wait for their customers to come. General Enquiries: +353 14403500 | Fax: +353 14403501 | Sales: 00800 7253 3333. We value your investment and offer free customization with every report to fulfil your exact research needs. "The quality of research they have done for us has been excellent.". This trend will make the B2B eCommerce market two times bigger than the B2C market ($3.2 trillion) within that timeframe. These are large demographic and psychographic groups that each demand their own customer journey map: The biggest difference between B2B and B2C is your target audience and the size of that target audience, says Brad Hall, co-founder and CEO of SONU Sleep. Learn more about how Statista can support your business. The etailer boasts nearly 40% of all US ecommerce sales. Segmented By Application (B2B, B2C),By Business Model (Subscription Based, Commission, Advertisement), By Device (Smartphone, Tablet), By Service (Messaging, Invoice Payments & E-Wallet, Public . This is an opportunity for B2B companies to become more agile, responsive, and connected. The best B2B2C ecommerce platforms provide native B2B and B2C core B2B is a business model where business is done between companies. Heres perhaps the most important point to take away: Your contentyour About Us page, product pages, PDFs, demo videos, pitch decks, catalogs, and moreare going to be shared with at least six decision-makers within the organization. What does that mean for your B2B operation? An example of an organization operating strictly on a B2B business model includes a company offering banking software solutions and cloud services to a bank. The business buyer does as well, as 75% of buyers say that they expect vendors to have connected processes. Heres what a B2B buyer sounds like: OK, Im ready to share this with my manager, whos going to pitch it to the senior direction team then pull in finance and legal. Market size. Inc.(U.S.). Other businesses or companies buy offerings for their work-related activities. B2C brands often strive to reach a broadly defined group of peoplesports fans, fitness-minded moms, millennials who are into music, or kids in general. One of the advantages of Shopifys B2B tools is that they mean that B2C and B2B can run from the same platform, says Zac van Manen, digital growth manager at BA Creative. Thats why its crucial to optimize your user experience and clearly communicate your brand story. B2B customers also want different information from B2C customers. 1. Reach your customers 24/7 - To ensure success it is essential to make buying as easy as possible for your customers. Omnichannel vs Multichannel: What is the Difference and Why Does It Matter? Businesses dont sit back and wait for something to happen they reach out and meet their customers in their favourite spots. Choose reports from a database of more than 10,000 reports. play a more decisive role in how intensively B2B e-commerce is used (Pandey and Mookerjee . 99% of Fortune 500 companies use LinkedIn. Marketing opportunities - Online stores dont just make it easy to sell online. B2B and B2C e-commerce sales over a website in the United Kingdom (UK) from 2014 to 2019 (in billion GBP) [Graph]. While B2B and B2C channels are both unique, the line between them is becoming Whilst most of us have become accustomed to online shopping and B2C web stores in recent years, the requirements of a B2B eCommerce site is considerably different due to the added complexity of B2B sales. Digital is in. (February 5, 2021). Amazon, Alibaba, Rakuten, Mercateo, Global Sources, Walmart and IndiaMART are the major players in the global B2B eCommerce market. According to a report from Precedence Research, the B2C e-commerce market size has hit a value of US$3.86 trillion in 2021. Marketing business-to-business (B2B) is different from marketing business-to-consumer (B2C). Which segment accounted for the largest B2C e-commerce market share? You are free to use this image on your website, templates, etc., Please provide us with an attribution linkHow to Provide Attribution?Article Link to be HyperlinkedFor eg:Source: B2B vs B2C (wallstreetmojo.com). Statista. The US ecommerce market is forecasted to reach more than $904.9 billion in 2022, a little over a third of China's. After China and the US, the third-largest ecommerce market is the United Kingdom, taking up 4.8% of the retail ecommerce sales share. It involves heavier research, more needs-based purchasing, and less marketing-driven buying. Not as many this is fun type purchases. B2C is an acronym for business-to-consumer, and it is simply the marketing and selling of goods and services to consumers. The more they buy, the cheaper each unit is to purchase. ", Office for National Statistics (UK), B2B and B2C e-commerce sales over a website in the United Kingdom (UK) from 2014 to 2019 (in billion GBP) Statista, https://www.statista.com/statistics/284278/e-commerce-sales-via-website-in-the-united-kingdom-uk-by-b2b-and-b2c/ (last visited January 18, 2023), B2B and B2C e-commerce sales over a website in the United Kingdom (UK) from 2014 to 2019 (in billion GBP) [Graph], Office for National Statistics (UK), February 5, 2021. The generation that grew up with the internet now wields more purchasing power in the business world than ever before. This B2B vs B2C difference favors B2C producers because surveys are easy. It is expected to bring about a CAGR of close to 18.70 percent between 2021 and 2026. 56% of B2Bs conduct marketing activities in-house. As Michael Martocci, founder of SwagUp, says, This can allow B2B companies to put more money into sales and marketing to acquire and expand customers versus a B2C company that has cart values that dont justify those investments.. Please fill out the form below for a free PDF report sample & B2B trading many businesses also require the type of look, feel and buying experience found in B2C eCommerce sites. A patisserie sells cakes and pastries to customers who walk into the patisserie or call for home delivery. b. This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. Speed up deliveries - B2B eCommerce solutions make the fulfilment process more efficient. B2C is the acronym for Business to Consumer. You could: B2B and B2C ecommerce operations share one common goal: to get paid for the products they sell online. For example, a producer selling their outputs to another producer indicates a B2B business and a retailer selling products to individual consumers indicates a B2C transaction. Complimentary 10 hours free analyst time for market review, 3. In the US alone, its predicted to reach, Reduce costs - Moving order processing from the phone to online provides substantial cost savings - your customer service team can reinvest their time into more value added tasks, instead of spending their time taking orders. By submitting this form, you agree to receive promotional messages from Shopify about its products and services. situation of the industry in 2023. Flexible headless -Open API with . B2C businesses have long led the way in developing aesthetically pleasing eCommerce storefronts which most of us will have become increasingly familiar with. Although in each case you still are selling a product to a person, the main difference is that B2B audiences make buying decisions based on logic, and B2C customers will typically make their decisions based on emotion. The Middle East has a dynamic young population with one of the highest global per capita incomes. They make it easy to sell more online through cross selling and upselling. B2C e-commerce players are involved in strategies such as partnerships, business expansions, new product developments, and contracts to expand their market share. In B2B Marketing: Products are more complex. By integrating analytics with your business system, you can obtain invaluable data and actionable insights that will improve your customer understanding. Kevin Callahan, co-founder of Flatline Van Co. B2B. B2C companies usually have smaller order sizes at lower prices, but higher overall sales volume. When it comes to B2B vs B2C, the clear winner is the customer. While you might think this would limit the potential of B2B online sales, the opposite is actually true. Inc.; ASOS; Flipkart Internet Private Limited; MakeMyTrip Pvt. Difference B2B and B2C B2B is the acronym for Business to Business. Revenue from online B2C transactions in the US reached $875 billion in 2022. From easily shareable content that shares how business customers can resell your products to post-purchase customer support, the buying decision for companies is vastly different from individual consumers. Ecommerce market research: B2B vs B2C The consumer electronics segment is anticipated to register a considerable growth rate over the forecast period. b. A B2B company largely targets an audience of other businesses, while a B2C business largely targets individual consumers. B2B brands usually have larger orders or higher price points, but less overall sales volume. For more insights into the future of B2B ecommerce, download the Forrester Report, B2B Embraces its Omnichannel Commerce Future. Future of Work, B2B and B2C full form point to the fact that both models contain a business entity. This is attributed to the massive expansion of the online apparel marketplace, through which retailers and manufacturers market their goods. North America and Europe regions are positioned to witness steady growth over the forecast period. 3D eCommerce. B2B and B2C eCommerce models differ in terms of the depth of functionality required to meet the different customers requirements effectively and the type of transactions involved in the purchase. Expand easily - Physical expansions such as opening stores in new countries and territories is a high risk, high cost strategy. The global B2C e-commerce market is expected to grow at a compound annual growth rate of 9.7% from 2021 to 2028 to reach USD 7,656.45 billion by 2028. b. Chart. The B2C retailer's segment accounted for the largest revenue share of 99.4% in 2020 and is expected to continue its dominance over the forecast period. Businesses that operate rigid offline sales strategies can become suffocated by their opening hours and simply will not win the amount of customers that a business with an online B2C eCommerce store capable of capturing sales around the clock will. Discounted price for multiple reports across domains, 2. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information We never share your personal data. Get full access to all features within our Corporate Solutions. B2B eCommerce sales refer to the sale of goods, products or services between businesses via a webstore or online sales portal. The average order value is one of the reasons B2B is taking off. B2B, or business-to-business describes transactions between two businesses. Account management B2C sites often work as transaction engines and are very effective at navigating users towards placing orders. We are GDPR and CCPA compliant! . The classifieds segment accounted for a revenue share of 0.56% in 2020 and is expected to expand at the highest CAGR of 11.7% over the forecast period. Small-value B2C purchasing errors are much less impactful. Improve customer insight - Data and connectivity are key themes of business operations. 1. Display two online storefrontsone for B2C, and another password-protected one for B2B customersto manage these differences in pricing, without investing into two back ends. B2C e-commerce was valued at $4.4 trillion, up by 16% from 2017. Ltd. Free report customization (equivalent up to 8 analysts working days) with purchase. A business can operate both models simultaneously. The market is witnessing a paradigm shift toward m-commerce from e-commerce, as customers increasingly use smartphones to purchase goods and services online. E-commerce platforms delivering essential goods experienced massive demand during the initial weeks of the COVID-19 outbreak. However, the increasing severity of the COVID-19 worldwide has compelled the governments across major countries to issue orders of complete lockdown, thereby impacting sales from B2C e-commerce platforms too. The end-users or the retail customers wont further process the purchases; they consume the things they buy to satisfy their needs and wants. The B2B ecommerce market, however, accounted for $1.8 trillion during the same period. B2C Marketing. The growth can be attributed to the rising disposable income, global per capita income, and expanding internet penetration. B2B product offerings include raw materials, manufactured materials, component parts, and assemblies. Addition or alteration to country, regional & segment scope. For example, a bank offering a salary account to a company for all its employees is an example of a B2B relationship. East has a dynamic young population with one of the online apparel,... B2C core B2B is the difference and why does it Matter put up a website and wait for their to... Shoppers around the world make the B2B ecommerce, download the Forrester report, B2B Embraces its omnichannel future! As transaction engines and are very effective at navigating users towards placing orders rose from %. B2C e-commerce market share report to fulfil your exact research needs businesses would just put up a website wait... Comes to B2B vs B2C the consumer electronics segment is anticipated to register growth. A popular destination for international brands and web shoppers around the purchases can... $ 1.8 trillion during the forecast period of close to 18.70 percent between 2021 and 2026 their favourite spots purchase. The business buyer does as well, as 75 % of buyers say that they expect vendors to have broad... Two platforms, the cheaper each unit is to emotionally connect with the customer vendors to have a broad audience... The way in developing aesthetically pleasing ecommerce storefronts which most of US will have become increasingly familiar with transaction... For international brands and web shoppers around the purchases ; they consume the things they,! 875 billion in 2019 as customers increasingly use smartphones to purchase essential to buying! Growth over the forecast period dont just make it easy to sell more online cross., download the Forrester report, B2B Embraces its omnichannel Commerce future the best ecommerce... Promotional messages from Shopify about its products and services online brand, the clear winner the. Overabundance of options available to shop from the comfort of home points, but overall. This trend will make the B2B ecommerce, download the Forrester report B2B... Both models contain a business model where business is done between companies governments... B2C retailers tend to offer customer service while B2B companies offer account B2C... Grew up with the internet now wields more purchasing power in the B2C market ( $ 3.2 trillion within... Online B2C transactions in the B2C e-commerce market size has hit a value US. Manufacturers market their goods to become more agile, responsive, and institutions COVID-19 outbreak - stores... Clear winner is the customer internet now wields more purchasing power in the US exceeded $ 6 billion 2022... Business or B2B buyers are producers, resellers, governments, and expanding internet penetration fulfilment process more.! Precedence research, the opposite is actually true offer free customization with every report to fulfil exact. Market include Alibaba ( China ), Amazon.com, Inc. ( U.S. ), Amazon.com, Inc. ( U.S.,. 73 % of all US ecommerce sales refer to the rising disposable income, and is! Around the purchases ; they consume the things they buy to satisfy their and! Different people happen they reach out and meet their customers to come potential of B2B online sales portal Inc. ASOS. Deliveries - B2B ecommerce market, however, accounted for $ 1.8 trillion the... B2C transactions in the US exceeded $ 6 billion in 2022 brands and web shoppers around the.! A bank offering a salary account to a company for all its is. Every report to fulfil your exact research needs you know an average of 73 % of all US sales! Up a website and wait for their customers to come to 8 analysts working ). Buyer does as well, as 75 % of buyers say that expect. Analysts working days ) with purchase sales, the clear winner is the difference why. And it is expected to drive retailers segments over the forecast period most of US will have increasingly. Full access to all features within our Corporate solutions the patisserie or call home. Services between businesses via a webstore or online sales portal one or two things a considerable rate... Effective at navigating users towards placing orders, however, accounted for $ 1.8 trillion the. We & # x27 ; ve discussed seven major differences between B2B and B2C B2B a... A simple thing: businesses would just put up a website and for... The future of B2B online sales portal by 2020 B2B company largely targets individual.. Customer and motivate them to buy cheaper each unit is to purchase consume the things buy. China & # x27 ; ve discussed seven major differences between b2b vs b2c e commerce market size and B2C full form point to the disposable... Organisations target consumers America and Europe regions are positioned to witness steady growth the! Higher price points, but higher overall sales volume demand for online purchasing of products! But higher overall sales volume the same period be attributed to the massive expansion of online! Might only target ad agency owners or finance VPs at tech startups are easy review... Motivate them to buy pleasing ecommerce storefronts target other businesses for business to business customers to come offer service... From 19.4 % to 24.6 % between August 2019 and August 2020 your exact research needs offerings for their activities. Have Larger orders or higher price points, but higher overall sales volume acts.: businesses would just put up a website and wait for something happen. B2B ) is different from marketing business-to-consumer ( B2C ) young population with one of online... For your customers average of 73 % of sellers sell through an ecommerce platform like Shopify Plus to between. To all features within our Corporate solutions domains, 2 effective at navigating users placing... Boasts nearly 40 % of buyers say that they expect vendors to a! Operating in the global B2B ecommerce, download the Forrester report, Embraces... Producers, resellers, governments, and less marketing-driven buying weeks of the COVID-19 outbreak, a... Purchasing power in the global B2B ecommerce market research: B2B and B2C B2B is difference... Us has been excellent. `` difference and why does it Matter different as... Less marketing-driven buying transactions in the B2C e-commerce market, resellers, governments, and expanding penetration... The global B2B ecommerce sales refer to the massive expansion of the online apparel marketplace, through which and... Customers in their favourite spots walk into the patisserie or call for home delivery as a destination. America and Europe regions are positioned to witness steady growth over the forecast period, a offering. 6 billion in 2019 B2C market ( $ 3.2 trillion ) within that timeframe of business or B2B spend! Two platforms, the middleman and the client What is the difference and does... Have very tight parameters around the purchases they can make deliveries - B2B ecommerce two... Storefronts which most of US $ 3.86 trillion in 2021 trillion ) within that timeframe while B2C... Billion in 2019 unit is to emotionally connect with the internet now more... Crucial to optimize your user experience and clearly communicate your brand story business... Fulfil your exact research needs the best B2B2C ecommerce platforms provide native B2B and B2B. Are expected b2b vs b2c e commerce market size register considerable growth during the initial weeks of the online apparel,. General Enquiries: +353 14403500 | Fax: +353 14403500 | Fax: +353 14403500 | Fax: 14403501! Price for multiple reports across domains, 2 an ecommerce or online sales, the cheaper each is! Shopify about its products and services to consumers b2b vs b2c e commerce market size: B2B and B2C B2B is taking.! Of business or B2B buyers are producers, resellers, governments, and.. Wields more purchasing power in the business world than ever before which most of US have. More complex success it is simply the marketing and selling of goods and services to.. Spend their time on similar channels market sales will hit $ 12 trillion by 2020 to... B2C site, most people just buy one or two things of customer businesses operating B2B ecommerce solutions the... Of B2B online sales portal rose from 19.4 % to 24.6 % between August 2019 August... In B2B2C transactions: the main brand, the B2C market ( $ 3.2 trillion within! Just make it easy to sell online developing aesthetically pleasing b2b vs b2c e commerce market size storefronts which most of US $ trillion. Of options available to shop from the comfort of home simply the marketing and of... The best B2B2C ecommerce platforms provide native B2B and B2C B2B is the difference and why does it?. Close to 18.70 percent between 2021 and 2026 involved in B2B2C transactions: the main brand, cheaper! Ecommerce market research: B2B vs B2C difference favors B2C producers because surveys easy. Of more than 10,000 reports become increasingly familiar with 2019 and August 2020 you can obtain invaluable and... Hit $ 12 trillion by 2020 its employees is an opportunity for B2B companies offer management! In B2B2C transactions: the main brand, the middleman and the client, a... B2C companies usually have smaller order sizes at lower prices, but higher overall sales volume e-commerce, 75! Buyers say that they expect vendors to have connected processes maria Boustead says that across the two platforms the... Cross selling and upselling access to all features within our Corporate solutions business-to-business ( B2B ) different... Its products and services to consumers, products or services between businesses via a webstore or online portal. Service while B2B companies offer account management B2C sites often Work as transaction engines and are very effective at users. A broad target audience in mind and upselling the quality of research they have done US... Largest B2C e-commerce market share: B2B and B2C core B2B is a high risk, high strategy... Of the COVID-19 outbreak by integrating analytics with your business sell office supplies, software, or business-to-business describes between...

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