Most eCommerce businesses will know by now that there are two main options for selling your products and services: B2B and B2C. B2B involves selling to another business, whereas B2C is selling directly to consumers. It’s been this way for some time now, so a new kid on the block was bound to arrive and stir things up.
Enter B2B2C ecommerce, a new framework that stands for business to business to consumer. BigCommerce explains the concept as ‘a business model where Company 1 sells their product or service in partnership with Company 2 to an end customer’. The customer is aware they are buying a product or service from Company 1.
How Does the B2B2C Model Work?
Partnerships make the world go round. We can’t always do everything ourselves, no matter how hard we try. The B2B2C model allows many existing B2B businesses to scale up, be more flexible and maximise opportunities.
That’s not to say it’s easy.
There are a number of things B2B businesses need to consider before entering the B2B2C framework.
Be on the Same Page
All the companies involved need to target the same consumer for this to work. The partnership should also add value to the customer. What can you both do together that you couldn’t do on your own? There must be a greater incentive to purchase because you can offer more.
Give Me the Data
Successful partnerships require an open, honest relationship. That means integrating on more than one level. You need to be willing to share data about your customers, stock, pricing and much more. Your marketing should be synced and you should work together in real-time. Without this openness, you risk confusing your customers and losing sales.
Equal Work
This goes without saying, but both companies should contribute equal amounts. This means financially, as well as ownership of the customer journey. It’s the only way to make sure the partnership is successful and long-lasting.
Marketing
We mentioned it above but can’t stress this enough. Both parties need to promote the products/services. The B2B2C model can work really well because you’re doubling your sources, customers and capabilities. If you’re not utilising that fully, there’s no point.
Can the B2B2C Model Be Successful?
Of course. As with any business opportunity, success comes from the effort you put in. The B2B2C model can scale your business, leverage sales channels and double your customer base.
The model might not be suitable for every business but there are many benefits.
- Clarity on customers – B2B businesses can have a clearer picture of their customers by gaining access to the data of their end customers. This information means they can improve the customer experience and even introduce a personalised journey.
- Increase revenue – By cutting overhead costs, many B2B2C businesses take the opportunity to expand their reach. Partnering with other businesses also means they can share the load.
- Brand identity – B2B businesses often become lost to the consumer. Most aren’t even aware of who they are actually buying from. The B2B2C model allows businesses to gain more control over how their products/services are presented to the end customer.
- Brand awareness – Gaining more customers is always the goal. By entering a partnership with another business, you’re also increasing your brand awareness and can utilise the resources of the company you’re working with.
There you have it; a brief overview of B2B2C. It’s definitely worth considering, especially with how rapidly the ecommerce industry is changing. It’s always worth being firmly on the pulse of innovation. Just keep in mind, this framework is all about partnership, so if you can’t commit, it’s not going to work.
