B2B (business to business) and B2C (business to customer) are two common types of business transactions or services in the commercial sector. B2B refers to delivery services or goods sold to other businesses, whereas, B2C means serving directly to the customer. Choosing between the two is essential for owners as it defines most of the operations of the company. Courier delivery services cater to both types of modules.
There are many similarities in between the two kinds of services but some striking differences as well. Some of them are listed below.
Payment Method:
The payment under a B2B transaction amounts depend on the customer and their requirement. On the other hand, in B2C, each customer will pay the same amount as the next. As far as the duration of payment is concerned, a B2C transaction will receive the money at the time of the transaction through cash, cards or e-wallets, whereas B2B deals require complex systems which attract payments eventually after the orders are fulfilled and the invoices are appropriated. The size of the order largely defines the payments modes and amounts.
E-Commerce:
In B2C, the customers log on to websites and browse through a catalogue of services or commodities and pay before checkout through credit or debit cards or e-wallets like PayTM. They are also required to fill in basic information like their e-mail and home address. E-commerce is relatively simpler in the case of B2C trades. In both the cases, it is actually the logistics companies that earn the maximum profits.
The system required to accept and deliver B2B trades is quite complex and should be able to operate through e-mails, documents and electronic orders. B2B clients usually generate invoices and pay in a few weeks’ or months’ time. The company providing services must be able to operate without receiving funds for this period.
Buying Method:
A general difference in both the types is that customers buy products for personal use whereas businesses or companies buy products to utilize them for their operations or further sales. In B2B, a dedicated team or personnel decide the amount and type of goods to be acquired but it’s fairly simple in B2C where the customer relies on his/her needs or wants. Similarly, air cargo tracking is a suitable service option for B2C trades, as B2B customers are most likely to get timely updates of the logistics.Large orders in B2B also require authorization from the higher levels of management
