Business-to-consumer (B2C) describes a business selling to or serving individual consumers as its customers. The term identifies who the business deals with—not whether the transaction happens online or in a store.
What does business-to-consumer mean?
B2C is short for business-to-consumer. A business operates on a B2C basis when its external customer is an individual consumer. The consumer may buy a product or use a service; the defining point is the customer’s identity.
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IBM Redbooks makes the distinction explicit: “The definition of B2B and B2C is first and foremost a business issue.” It adds, “This definition does not introduce any technology.” The classification is about the business relationship, not the tools used to conduct it. IBM Redbooks, B2B Solutions using WebSphere Partner Gateway V6.0, section 1.2.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchWhat is an example of a B2C business?
A shop selling directly to people is a straightforward example. In an online version, a publicly accessible store lets a shopper browse and buy without first being known to the business. IBM Redbooks compares that experience to entering a street-level store open to anyone. Customers may also register, which can help the business maintain an ongoing relationship with them.
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B2C is not limited to online shopping. A website is one example of how a business can serve consumers; the term itself does not require a website, a particular sales channel, or a specific technology.
How is B2C different from B2B?
The basic distinction is the external customer or counterparty: B2C involves consumers, while business-to-business (B2B) involves other businesses.
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| Model | External customer or counterparty |
|---|---|
| B2C | Individual consumers |
| B2B | Other businesses |
B2B transactions may involve repeat or standing orders, negotiated terms, varied payment arrangements such as credit lines or open orders, and longer-term buyer-seller partnerships. These are tendencies, not requirements: the customer’s identity—not a particular payment method or contract—is the defining distinction.
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No. E-commerce describes buying and selling online; B2C describes a business’s relationship with its external customers. An online store can be B2C, but the label also applies when a business serves consumers through other channels. The two terms may overlap, but they do not mean the same thing.
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