Business-to-Business (B2B) and Business-to-Consumer (B2C) describe the types of customers a company sells to, and in retail, those audiences shape everything from pricing to marketing and service. In simple terms, B2B retailers sell products or services to other businesses, while B2C retailers sell directly to individual shoppers for personal use.
What B2B means in retail
In a B2B model, a company’s primary customers are other businesses such as retailers, wholesalers, restaurants, or corporate buyers. For example, a fashion wholesaler supplying inventory to independent boutiques or a software platform selling retail POS systems to store chains are operating B2B.
Transactions are usually larger in volume, negotiated on contract terms, and may involve invoicing, payment terms, and logistics agreements rather than instant checkout. The buying decisions are typically made by teams—buyers, finance, operations—who focus on price, reliability, and return on investment.
What B2C means in retail
B2C stands for Business‑to‑Consumer, where a retailer sells finished goods or services directly to end consumers, often in smaller quantities for personal or household use. Examples include supermarkets, fashion chains, beauty retailers, and online stores selling straight to shoppers.
B2C transactions usually happen at a point of sale—online or in‑store—with payment made immediately by card, cash, or digital wallets. Purchase decisions are faster and more emotional, influenced by brand image, promotions, reviews, and convenience rather than long contract negotiations.
Key differences between B2B and B2C in retail
Several factors separate B2B and B2C retail models:
- Customer type and use case
- B2B: Sells to organisations that will resell, transform or use products in their operations (for example, a retailer buying stock from a wholesaler).
- B2C: Sells to individuals who are the final users of the product, buying for personal needs or lifestyle.
- Order size, pricing, and margins
- B2B: Larger orders, negotiated pricing, and volume discounts are common, often at lower per‑unit prices.
- B2C: Smaller basket sizes, fixed or promotional pricing, and higher per‑unit margins to cover marketing and store costs.
- Buying process and decision‑makers
- B2B: Longer sales cycles with multiple stakeholders, formal approval steps, and focus on ROI, reliability, and total cost of ownership.
- B2C: Shorter journeys, often a single decision‑maker, with choices driven by needs, preferences, trends, and emotional triggers.
- Relationships and marketing focus
- B2B: Fewer, higher‑value customers, deeper account relationships, and sales supported by account managers, trade terms, and personalised service.
- B2C: Broad customer base, mass or segmented marketing, and emphasis on brand awareness, customer experience, and loyalty programs.
Understanding whether a brand’s core model is B2B, B2C, or a mix of both helps retailers design the right pricing, merchandising, and marketing strategies—and choose the sales channels, from wholesale showrooms to direct-to-consumer e-commerce, that best fit their target customers.
