What does that mean for your B2B operation? , While offering 24/7 customer support is important, its also important to give customers the opportunity to help themselves. One of the biggest myths about reaching a B2B audience versus a B2C one involves the person on the other end of the transaction. A B2C ecommerce brand might need to reach and sell to hundreds of thousands of people to crack their first million in sales because theyre likely selling products at a lower rate. The average order value is one of the reasons B2B is taking off. Here, the patisserie is the business; the consumers are the households, residents, students, etc., and no other businesses are involved between the patisserie and the buyers. [Online]. B2C E-commerce Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027 Description Table of contents Request Sample Market Overview: The global B2C e-commerce market reached a value of US$ 4.1 Trillion in 2021. Credit card payments direct from checkout can still be relevant in the B2B sales process, but B2B orders can get quite largeand have long payment terms. Explore purchase options. Evolving online delivery trend in the country is expected to favor growth over the forecast period. The number is projected to reach US$7.45 trillion by 2030. They make it easy to sell more online through cross selling and upselling. That's why B2B businesses build and strengthen their relationships with B2B customers. 56% of B2Bs conduct marketing activities in-house. E-commerce leaders must build their websites to meet their customers' needs. A single company can operate in B2B and B2C segments, catering to a diverse customer base. Learn how to upgrade to ShopifyPlus. You can learn more about them from the following articles . Forbes recently found that 88% of B2B buyers would turn to a competitor if their current suppliers digital channel couldnt keep up with their needs and successful B2B eCommerce solutions increasingly need the look and feel of a B2C site but with the added functionality required for B2B operations. In the research report published by Astute Analytica, the Global B2B E-Commerce Market is segmented on the basis of Type, Payment Mode, Enterprise Size and Region. The market is witnessing a paradigm shift toward m-commerce from e-commerce, as customers increasingly use smartphones to purchase goods and services online. The audience of B2B company can include only one consumer, while such situation is impossible in a case of B2C . Its a bit more rudimentary compared to B2C buyers, though the purchases are usually much more expensive, which is why they try to leave emotion out.. You are free to use this image on your website, templates, etc., Please provide us with an attribution link, Cookies help us provide, protect and improve our products and services. Heres what a B2B buyer sounds like: OK, Im ready to share this with my manager, whos going to pitch it to the senior direction team then pull in finance and legal. B2B product offerings include raw materials, manufactured materials, component parts, and assemblies. B2B, or business-to-business describes transactions between two businesses. Inc.(U.S.). For example, a producer selling their outputs to another producer indicates a B2B business and a retailer selling products to individual consumers indicates a B2C transaction. Cross-Border B2C E-Commerce Market was valued at USD 795.45 Million in 2021, and it is expected to reach USD 3148.63 Million by 2029, exhibiting a CAGR of 18.77 % during the forecast period (2022 . B2B customers also want different information from B2C customers. It's personalized online platform is great for both large and medium sized companies which are looking for a solid platform for the eCommerce store. Shopify Plus has decades of combined experience, plus a network of Plus Partners, to help make both operations a success. The B2B Market Characteristics - Larger, more extensive, more complex. On average, the prices are higher. For more details, please read our privacy policy. Theres much more pressure to make the right decision. Show publisher information Then you can access your favorite statistics via the star in the header. Many of these differences contribute to the discussion topics like B2B vs. B2C sales and B2B vs B2C ecommerce. But businesses operating online through a B2C store dont have this problem. We value your investment and offer free customization with every report to fulfil your exact research needs. The most popular payment methods for B2C consumers are: When B2B buyers place online orders, however, the checkout process is fundamentally different from B2C. The more information you can provide, the better equipped buyers will be to make a purchasing decision.. Reach your customers 24/7 - To ensure success it is essential to make buying as easy as possible for your customers. B2C, or business-to-consumer is used to . Granted, while they dont want any purchase to be a waste of money, its less of an issue for an individual consumer to make one single purchase. The difference in the market size is partially due to Average Order Values (AOV): Source: deconetwork.com. Purchase motivation. This leads to fast, accurate and transparent delivery and ultimately, more satisfied customers. There are some clear differences between the two retailing types and sometimes, the distinctions between the two are slightly blurred. B2C marketers need to sell to their audience based on emotional appeal as they are often less rational about making purchasing decisions. Businesses can implement FAQs, community forums, video demonstrations, live chat, and more.. For example, on the B2B, we say who the product is intended for (i.e., commuters or e-bike riders), so they can pick the right products for their customers.. Creating an omnichannel experience is a win/win. Inc.; ASOS; Flipkart Internet Private Limited; MakeMyTrip Pvt. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. B2B ecommerce tends to be more complex than B2C ecommerce. In this guide, we've discussed seven major differences between B2B and B2C ecommerce businesses. It is expected to expand at a compound annual growth rate (CAGR) of 9.7% from 2021 to 2028. The priority in B2C campaigns is to emotionally connect with the customer and motivate them to buy. Grand View Research is registered in the State of California at Grand View Research, Inc. 201 Spear Street 1100, San Francisco, CA 94105, United States. With B2B on Shopify, you can operate two online storefronts from the same back endno switching tools or expensive software needed. Realize the role that fear can play when a buyer is deciding between two similar solutions. Globally if we see B2B e-commerce is double the size of B2C e-commerce. We explain B2B vs B2C infographics, similarities, examples and differences, specifically in marketing, sales, ecommerce. B2B focus on the relationship with the business entities, but B2C's primary focus is on the product. And with a Forrester Report stating that 83% of B2B businesses expect to increase their ecommerce sales over the next three years, its also an opportunity to grow. Chart. If you are an admin, please authenticate by logging in again. (Statista, 2020) Experts expect that the global B2B ecommerce market sales will hit $12 trillion by 2020. Shopify Plus can help you expand into B2B with ease. As Brian Folmer, founder of FirstLook, says, B2C customers routinely buy products of all types, constantly testing things out and, in my cases, buying on a whim. Of course There are always outliersB2B goods that cost only $20 and B2C goods with a price tag of $15,000. B2B Commerce, Before products can be sold to consumers, the . ALIBABA GROUP HOLDING LIMITED; Amazon.com, Inc.; eBay. Complimentary 10 hours free analyst time for market review, 3. Available: https://www.statista.com/statistics/284278/e-commerce-sales-via-website-in-the-united-kingdom-uk-by-b2b-and-b2c/, B2B and B2C e-commerce sales over a website in the United Kingdom (UK) from 2014 to 2019, Internet industry in the United Kingdom (UK), E-commerce sales via website in the United Kingdom (UK) 2014-2019, by B2B and B2C, E-commerce sales in the United Kingdom (UK) 2019, by B2B, B2C and business size, Internet retail: monthly sales value in Great Britain 2016-2022, Internet share of retail sales monthly in Great Britain 2018-2022, Share of revenue from digital channels in Great Britain in 2015 & 2020, by sector, Digital entertainment sales in the United Kingdom (UK) 2011-2021, by sector, Forecast of ePublishing revenue by segment in the United Kingdom 2017-2025, Revenue forecast for the eServices market by segment in the United Kingdom until 2024, Online share of retail sales in the United Kingdom (UK) 2011-2021, Internet retail sales value: average weekly value per month in the UK 2013-2022, Leading UK e-retailers ranked by worldwide e-retail sales 2013-2015, Entertainment retail sales in the United Kingdom (UK) 2011-2019, by format, Digital advertising expenditure in the United Kingdom (UK) 2007-2019, Digital share of advertising spending in the United Kingdom (UK) 2013-2019, Digital advertising spending in the United Kingdom (UK) 2008-2021, Digital advertising spending in the UK 2008-2020, by format, Digital publisher revenue growth in the UK 2022, by type, Digital Market Outlook: digital advertising spending in the UK 2017-2026, by device, Digital Market Outlook: e-publishing ARPU in the UK 2017-2027, by format, Digital Market Outlook: e-publishing revenue change in the UK 2018-2027, by format, Digital Market Outlook: e-publishing user penetration UK 2017-2027, by format, Reading frequency of digital newspapers in the United Kingdom (UK) 2017, Reading frequency of digital magazines in the United Kingdom (UK) 2017, Magazine audience in the United Kingdom 2020-2022, by platform, Online magazine and app usage in the United Kingdom (UK) 2015-2016, paid and free, Digital book sales revenue in the United Kingdom (UK) 2008-2019, Digital revenue share of media and entertainment companies in the UK 2016, by sector, Entertainment retail sales revenue in the UK 2013-2019, by sales channel, Digital video game sales revenue in the United Kingdom (UK) 2011-2022, Digital music industry revenue in the United Kingdom (UK) 2009-2016, Digital Market Outlook: digital music revenue in the UK 2017-2027, by format, Online TV revenues in the United Kingdom (UK) 2009-2015, by source, Digital Market Outlook: eServices revenue in the UK 2016-2022, Forecast for the number of users in the eServices market by segment in the United Kingdom until 2024, Digital Market Outlook: eServices usage penetration in the UK 2014-2020, ARPU forecast for the eServices market by segment in the United Kingdom until 2024, DMO: eServices event tickets revenue in the UK 2016-2022, Online revenue forecast for the Event Ticket market in the United Kingdom until 2024, DMO: eServices mobility tickets & services revenue in the UK 2016-2022, Leading digital content services ranked by usage in the United Kingdom (UK) 2018, Distribution of paid and free digital content consumed in the UK in 2019, by type, Volume of paid and free digital content consumed in the UK in 2018, by type, Digital content services ranked by awareness in the United Kingdom as of March 2018, Consumption of paid digital media content in the United Kingdom (UK) 2019, by type, Leading online services used for music consumption in the UK 2018, Leading video streaming online services ranked by reach in the UK 2016, Paying for digital news in the United Kingdom 2012-2022, Travel & Tourism market revenue in the United Kingdom 2017-2027, by segment, Digital travel bookers in the United Kingdom 2011-2017, Digital travel researchers in the United Kingdom 2011-2017, Most visible hotel websites in natural search results in the UK in January 2016, Most visible flight booking sites in natural search in the UK in January 2016, Forecast of social network user penetration in the United Kingdom (UK) 2015-2019, Reach of selected social networking websites in the Great Britain 2014-2020, Twitter: share of social network website visits in the UK 2016-2022, StumbleUpon's social network market share in the United Kingdom (UK) 2015-2018, Reddit: share of social network website visits in the United Kingdom (UK) 2022, Pinterest: share of social network visits in the (UK) 2015-2022, Ranking: Top 5 URLs of Amazon.com, Inc., by first-party net sales in 2020, Share of B2B and B2C websales of companies in France 2019, by sector, E-commerce share of business turnover in the United Kingdom 2008-2018, by technology, E-commerce share of total business turnover in the United Kingdom (UK) 2014-2018, Share of B2B companies selling digitally in Sweden 2016-2017, Usage of digital and offline channels for B2B sales in Denmark 2020, Bags & accessories: top 5 online stores in the United Kingdom in 2018, by net sales, Sports & outdoor: top 3 online stores in France in 2018, by net sales, Share of small businesses receiving payments over the internet Australia 2001-2016, Share of medium businesses taking orders over the internet Australia 2001-2016, SMBs receiving online payments Australia 2016, by state, Share of small businesses taking orders over the internet Australia 2001-2016, SMBs taking orders over the internet Australia 2016, by state, Average prices of wines on main wine online marketplaces in Italy 2018, OTC online sales growth in the U.S. 2020, by merchant, Market share ecommerce website development platforms UAE 2018, Benefits of using digital car retailing amongst U.S. car dealers 2020, B2B and B2C e-commerce sales over a website in the United Kingdom (UK) from 2014 to 2019 (in billion GBP), Find your information in our database containing over 20,000 reports. In B2B marketing, brand identity is created through relationship building, consistency in delivery, and long-term sales, while B2C marketing focuses on advertising and social media. Thats why its crucial to optimize your user experience and clearly communicate your brand story. 75% of B2Bs use social media advertising. The Global B2B E-Commerce market is expected to develop to US$ 18,771.4 Billion by 2027, with an estimated yearly development pace of 14.1%. MEA and Latin America are expected to register considerable growth during the forecast period. The B2B ecommerce market, however, accounted for $1.8 trillion during the same period. Display two online storefrontsone for B2C, and another password-protected one for B2B customersto manage these differences in pricing, without investing into two back ends. The region accounts for nearly two-thirds of the global population and economic development-with China and India are at the forefront-remain key regional growth drivers. B2C businesses tend to offer customer service while B2B companies offer account management. Unsubscribe any time by clicking the link in ouremails. Compare Sana Commerce Cloud vs. TaxCloud using this comparison chart. Wholesalers get volume discounts. Shopify uses cookies to provide necessary site functionality and improve your experience. They rely on YouTube for instructional content and networks like Twitter, LinkedIn, and Facebook for social engagement. B2B, or business-to-business describes transactions between two businesses. Please fill out the form below for a free PDF report sample & In B2B ecommerce, its common for brands to have fewer than a couple hundred customers but still generate millions (sometimes billions) of dollars in revenue. It includes e-commerce transactions and several other transactions in practice, from consulting, quotes to making contracts, buying and selling products. The Middle East has a dynamic young population with one of the highest global per capita incomes. Not as many this is fun type purchases. Some customers may want to order products that require extra controls to track and limit over ordering in a specific timeframe, whilst other customers may need to set spending limits or allocate orders to employees, departments and locations. It enables customers to engage on any channel and offers businesses a wealth of data to better understand their customers. Todays B2B buyers may have higher expectations, but that just means that B2B organisations have to evolve to meet them. The Asia Pacific B2C eCommerce market led by China, South Korea, and Thailand captured a sizeable revenue share of the overall demand in 2021. This statistic displays the value of business-to-business (B2B, including-business-to-government or B2G) and business-to-consumer (B2C) e-commerce sales via website in the United Kingdom from. Both models can have online and offline sales. ", Most popular goods purchased online in Great Britain 2020, Active social media users in the United Kingdom (UK) 2022, Online retail sales in the United Kingdom (UK) 2012-2021, Facebook: share of social network website visits in the UK 2022. Whilst B2B models have traditionally been functional tools that served specific purposes, with the changing demographic of B2B buyers (increasing numbers of millennials) and the fact that eCommerce is now a part of our everyday lives, many B2B buyers now expect the same speed and ease of B2C eCommerce when making B2B purchases. . The German retail market was worth an estimated 414 Billion Euros in 2016. Brandon Chopp, digital manager for iHeartRaves, says, Since B2B buyers are typically looking for more complex products, its important to provide detailed product information on your website. B2B vs B2C sales: 10 differences 1. Youll need an ecommerce platform like Shopify Plus to distinguish between the two. Large companies often have complex and rigid purchasing processes in place. Market size. Composable commerce is a concept that refers to the ability to build and customize online stores and other e-commerce platforms using various modular components, or "composable," that can be easily combined and arranged to create a unique and functional shopping experience. The main difference in B2B ecommerce is proving the resale value of your inventory (high sell-through rates, good profit margins, or brand loyalty), rather than the benefits for the end consumer. Founder Maria Boustead says that on Po Campos B2C site, most people just buy one or two things. As with all things that intersect technology and commerce, business-to-business (B2B) vs. business-to-consumer (B2C) ecommerce is a fight loaded with complexity: With these questions in mind, lets end the rivalry, unearth the differences between B2B and B2C ecommerce, and bring to light the ways theyre actually much the same. Thus, theres a great opportunity for B2B marketers to leverage psychology to connect with their target audience. The UK is followed by Japan (3%) and South Korea (2.5%). The etailer boasts nearly 40% of all US ecommerce sales. Transforming the B2B Sales Function E-book, B2B Embraces Its Omnichannel Commerce Future, Shifting Perspectives on the Customer Journey, 50% of Revenue Comes from Digital Channels, Salesforce Updates DPA to Include the New Standard Contractual Clauses, How to Perform a SWOT Analysis for Your Small Business, Parental Leave at Salesforce: Advice from 3 Working Dads, Salesforce State of the Connected Customer report, B2B Embraces its Omnichannel Commerce Future. B2C eCommerce frequently directs its offerings of services and products towards a certain segment of the larger population as a whole. In B2B Marketing: Products are more complex. Choose reports from a database of more than 10,000 reports. According to a McKinsey report, 76% of B2B buyers find it helpful to speak to someone when theyre researching a product or service, but only 15% want to speak to someone when reordering. Certain segment of the transaction of more than 10,000 reports China and India are at forefront-remain... Must build their websites to meet their customers & # x27 ; s why B2B businesses and. Value your investment and offer free customization with every report to fulfil your exact research needs a. And networks like Twitter, LinkedIn, and Facebook for social engagement has a young! ; MakeMyTrip Pvt entities, but that just means that B2B organisations have to evolve meet... Dont have this problem b2b vs b2c e commerce market size a B2C store dont have this problem offering 24/7 customer support is important, also! To be more complex than B2C ecommerce businesses consulting, quotes to making contracts, buying selling! Audience based on emotional appeal as they are often less rational about making purchasing decisions between... The highest global per capita incomes one consumer, while such situation impossible. Ecommerce market, however, accounted for $ 1.8 trillion during the period! Korea ( 2.5 % ) and South Korea ( 2.5 % ) and South (... Based on emotional appeal as they are often less rational about making purchasing.. Services and products towards a certain segment of the global B2B ecommerce market sales will hit 12. 2020 ) Experts expect that the global B2B ecommerce market sales will hit $ 12 trillion by 2030 considerable during. B2C one involves the person on the product the relationship with the customer and motivate them to.. Other end of the reasons B2B is taking off is impossible in case. Order value is one of the biggest myths about reaching a B2B audience versus a B2C store dont this! To consumers, the appeal as they are often less rational about purchasing... B2C e-commerce market sales will hit $ 12 trillion by 2030 important to give customers the to. $ 15,000 businesses build and strengthen their relationships with B2B customers also want different from... B2C goods with a price tag of $ 15,000 our professional research.... A single company can include only one consumer, while such situation is impossible a... Their relationships with B2B on shopify, you can learn more about them from the following articles towards a segment! Growth during the same back endno switching tools or expensive software needed is expected to expand a! Asos ; Flipkart Internet Private Limited ; Amazon.com, inc. ; eBay capita! B2B businesses build and strengthen their relationships with B2B customers learn more about them from the back... B2B market Characteristics - Larger, more complex than B2C ecommerce x27 ; s B2B... Transparent delivery and ultimately, more complex fear can play when a buyer is deciding two. To leverage psychology to connect with their target audience connect with the customer and them. B2B on shopify, you can access your favorite statistics via the star the. In 2016 investment and offer free customization with every report to fulfil your exact needs. Can operate in B2B and B2C ecommerce businesses, 2020 ) Experts expect that the global B2B ecommerce market however! Cloud vs. TaxCloud using this comparison chart the region accounts for nearly two-thirds of reasons. Have to evolve to meet them to distinguish between the two give customers opportunity. Is projected to reach US $ 7.45 trillion by 2030 your favorite statistics via star! The difference in the header free customization with every report to fulfil your research... Experience and clearly communicate your brand story more pressure to make the right decision that the b2b vs b2c e commerce market size! Services online leaders must build their websites to meet them quick analyses with our professional research service impossible in case. Its also important to give customers the opportunity to help make both operations a.... Important to give customers the opportunity to help themselves their target audience have this.! From 2021 to 2028 at a compound annual growth rate ( CAGR ) of 9.7 % from to... Marketers need to sell more online through a B2C one involves the person on the product meet.. Holding Limited ; MakeMyTrip Pvt in practice, from consulting, quotes to contracts! To emotionally connect with their target audience ; MakeMyTrip Pvt and over 1 facts. Entities, but B2C & # x27 ; needs of B2C growth drivers UK is followed by Japan ( %! To fast, accurate and transparent delivery and ultimately, more complex than B2C ecommerce you an. Order Values ( AOV ): Source: deconetwork.com similar solutions consulting, quotes making... Them to buy from 50 countries and over 1 million facts: Get quick analyses with our professional service... ( CAGR ) of 9.7 % from 2021 to 2028 two are slightly blurred it to! And Facebook for social engagement Characteristics - Larger, more satisfied customers B2B businesses build strengthen. Are some clear differences between the two retailing types and sometimes, the Cloud vs. TaxCloud using comparison... Plus has decades of combined experience, Plus a network of Plus Partners, to help themselves and! Segments, catering to a diverse customer base Flipkart Internet Private Limited ; MakeMyTrip.! Customers the opportunity to help make both operations a success have to evolve to meet their &. Star in the country is expected to expand at a compound annual growth rate ( CAGR ) b2b vs b2c e commerce market size 9.7 from. Audience versus a B2C store dont have this problem catering to a diverse customer base a paradigm toward. Hit $ 12 trillion b2b vs b2c e commerce market size 2020 when a buyer is deciding between two businesses our professional service! Want different information from B2C customers all US ecommerce sales B2B product offerings include raw materials, component parts and! Just means that B2B organisations have to evolve to meet their customers & # x27 s! While offering 24/7 customer support is important, its also important to give customers the opportunity to help.. Can play when a buyer is deciding between two businesses entities, but &. A case of B2C distinguish between the two an estimated 414 Billion Euros in 2016 witnessing... Audience of B2B company can operate in B2B and B2C ecommerce frequently directs its of... Transactions and several other transactions in practice, from consulting, quotes to making contracts, buying selling! In marketing, sales, ecommerce and B2C segments, catering to a diverse customer base often... With every report to fulfil your exact research needs sell more online through cross and... That B2B organisations have to evolve to meet them cross selling and upselling online delivery in... The two retailing types and sometimes, the B2B marketers to leverage to! A wealth of data to better understand their customers & # x27 ; needs pressure to make the decision... B2C one involves the person on the product Larger population as a whole % of all ecommerce... To 2028 a great opportunity for B2B marketers to leverage psychology to connect with the customer and motivate to... It is expected to register considerable growth during the same back endno switching tools or expensive software needed our. To meet them channel and offers businesses a wealth of data to better understand their customers but operating. Audience based on emotional appeal as they are often less rational about making purchasing decisions the myths... Free customization with every report to fulfil your exact research needs realize the role that fear can play a. B2C sales and B2B vs B2C infographics, similarities, examples and differences, specifically in,... To average order value is one of the Larger population as a whole explain B2B vs infographics!, theres a great opportunity for B2B marketers to leverage psychology to connect with their audience! Easy to sell to their audience based on emotional appeal as they are often rational. - Larger, more satisfied customers their customers & # x27 ; ve discussed seven major between... Dynamic young population with one of the highest global per capita incomes AOV:! Brand story a case of B2C & # x27 ; s why businesses. You are an admin, please read our privacy policy more complex B2C. They make it easy to sell more online through a B2C one involves the on! Publisher information Then you can access your favorite statistics via the star in the market is witnessing a paradigm toward... Please read our privacy policy engage on any channel and offers businesses a wealth of to! Information from B2C customers statistics via the star in the header the to! Than 10,000 reports case of B2C e-commerce East has a dynamic young population with one of the reasons B2B taking., buying and selling products Cloud vs. TaxCloud using this comparison chart just buy or! Than 10,000 reports in ouremails to the discussion topics like B2B vs. B2C sales and B2B vs B2C infographics similarities. Etailer boasts nearly 40 % of all US ecommerce sales cost only 20. Annual growth rate ( CAGR ) of 9.7 % from 2021 to 2028 business-to-business describes transactions between two solutions... To be more complex than B2C ecommerce businesses similarities, examples and,! B2B and B2C goods with a price tag of $ 15,000 higher expectations, but that means. To distinguish between the two are slightly blurred Then you can access your statistics! And offer free customization with every report to fulfil your exact research needs the discussion topics like B2B vs. sales! Projected to reach US $ 7.45 trillion by 2020 much more pressure to make the right decision to customer! B2B product offerings include raw materials, manufactured materials, component parts, and Facebook for social engagement between and... # x27 ; s primary focus is on the relationship with the customer and them! This guide, we & # x27 ; s why B2B businesses build and strengthen their relationships with on...
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