What does business-to-consumer (B2C) mean?

Business-to-consumer (B2C) transactions involve businesses selling their products and services directly to individual consumers. This model includes various industries like retail, ecommerce, hospitality, and entertainment, encompassing both small businesses and large brands, as well as brick-and-mortar and online retailers. B2C businesses have greater control over the customer experience, allowing them to target customers with customized marketing campaigns and refine product development. Online selling enables B2C brands to build loyalty through online communities and increase brand awareness through search engine optimization.

While many use B2C and direct-to-consumer (DTC) interchangeably, DTC is often considered a subcategory of B2C. It is distinct from business-to-business (B2B) ecommerce, where businesses sell to other businesses, such as software-as-a-service (SaaS) companies. B2C enterprises use channels like websites, social media, and physical stores to connect with their audience, drive sales, and foster brand loyalty, showcasing the fusion of commerce and consumer-centricity in the digital era.