The distinction between supplying other businesses (B2B) and supplying consumers (B2C) isn't so clear anymore. As ecommerce grows and develops a brand new business-to-business-to-consumer (B2B2C) approach keeps growing in popularity. What could it mean for your business?

What is B2B2C ecommerce?

B2B information mill now building new relationships that can help them reach their target end users and consumers in a B2B2C model. It isn't like using a wholesaler who sells to some retailer who then sells towards the customer or with companies that sell products in a 'white label' arrangement.

B2B2C arrangements can include:

• Two businesses that target the same end customers; one can't easily access them as the second already includes a relationship together.
• A business that wishes to provide a wider product range to its customers but doesn't want to develop them, same with happy to sell another business's products.
• A business that's happy to provide a service or product to its customers included in a broader package.
• A business that will allow another business to gain access to its people to help them increase brand awareness.

How does B2B2C work in practice?

For B2B2C to work, the businesses working together must provide value for their customers that they wouldn't achieve on their own. It's different from selling straight to consumers (D2C) or a channel partnership where products or services are marketed and sold, often with co-branding.

For example, Uber Eats sells its delivery plan to restaurants and also to consumers as well. Many of the mobile apps used by consumers for deliveries can be regarded as B2B2C.

An ecommerce platform selling groceries could meet the needs of consumers who prefer to shop online instead of going to a store without needing to store products inside a warehouse. Instead, they will work in partnership with the grocery stores who don't have to create their own shopping online channel. Customers know that their shopping is coming using their favorite grocery store and never the ecommerce platform. Businesses providing this kind of service, like Instacart, have thrived throughout the pandemic.

Providers like Affirm arrange quick installment loans for consumers to use in the point of sale to finance their purchases. So, for instance, a business selling high value household appliances might spread customers who want to arrange a finance package. The customer knows that the merchandise and also the finance originate from different providers and is pleased with the arrangement because it allows them to make their purchase.

Generally, an upswing of ecommerce provides entrepreneurs with opportunities to create B2B2C businesses in partnership with online sellers. In return, businesses can gain access to infrastructure and customer information quickly and cost effectively.

B2B2C pros and cons

As a manufacturer or service provider you could choose to sell directly to your last users, however it might require a shift from a B2B model to a more customer-centric approach where different sales, customer support and data management skills are essential. In certain sectors, like pharmaceuticals, there might also be restrictions on selling straight to consumers. You'd likewise need an up-to-date digital infrastructure to aid network marketing.

In contrast, the B2B2C model will help increase your subscriber base by giving access to different sales channels and partners. However, it takes careful thought and planning to make sure that the partners will gain mutual benefits and that data security and brand experience are properly managed. It will also make a difference to understand ahead of time the relationship each partner may have using the customers.

B2B2C could be especially beneficial to smaller businesses and start-ups, providing an immediate path to growth. For many existing B2B companies, it's an chance to expand without affecting existing B2B relationships and also to gain new insights about end users.

B2B2C marketing

The B2B2C marketing model involves both B2B and B2C audiences, so data sharing between your partners is a vital consideration for sales, customer support, and reputation.

Demand generation for both your business partners and consumers is going to be needed. Some companies concentrate on increasing brand recognition they are driving consumer demand. Others focus on their business intermediaries, using Account Managers for instance, to inspire these to promote their service or product. Whatever the balance, messaging is required to appeal to both audiences.

In an ecommerce collaboration you'll be jointly accountable for ensuring everything online performs well, from loading time and effective navigation and page structure towards the overall design and branding. Most significantly, additionally, you will have to satisfy the growing expectation that purchasing experiences will be personalized.

While one of the big advantages of the B2B2C model may be the opportunity to reach new audiences, when customers are in different parts of the planet you will have to manage deliveries, documentation, and customer queries in multiple languages and manage multi-currency pricing and local taxes.