Business To Consumer (B2C) Definition and Examples (2025)

Business to consumer (B2C) is a commerce model where businesses sell products and services directly to consumers, often online. Learn about B2C in this post.

The business-to-consumer (B2C) model is a widespread form of commerce, where businesses sell products or services directly to individuals. The structure underpins everyday transactions from buying groceries to online shopping.

Here, discover the benefits of the B2C model when starting a new business, learn how it differs from other forms of sale, such as business to business (B2B), and review examples of successful B2C strategies.

Ready to start your business? Create your website today or learn more about Shopify’s tools for selling online and in person.

What is business to consumer (B2C)?

Business to consumer (B2C) describes businesses that sell products or services directly to individual consumers. 

The term B2C is widely used to refer many product and service models on the consumer market, including:

• Manufacturers selling products online or in brick-and-mortar stores
• Consumer service providers

Although it can be applied broadly, sometimes B2C is used strictly to describe businesses that only sell directly to consumers, without middle people or third-party retailers facilitating sales.

💡 A consumer is a person who purchases products or services for their own use.

Understanding B2C

The rise of B2C is tied to the growth of ecommerce and Amazon in the late 1990s. The 1998 holiday season (known as the first e-tail Christmas) saw $1.5 billion in online sales, popularizing the practice of businesses selling directly to consumers over the internet.

Plus, since B2C online retailers weren’t paying retailer markups or agent commissions, they could offer competitive pricing. This shift sparked a change in shopping habits that continues today, persuading many traditional brick-and-mortar businesses to establish their online presence.

Amazon’s expansion from an online bookstore to a global marketplace illustrates B2C’s potential. Amazon has grown by following and serving consumer demand, expanding into additional B2C services like entertainment streaming and cloud storage.

B2C vs. B2B: Key differences

B2C companies sell directly to consumers, while business-to-business (B2B) companies serve other businesses. Examples of B2B businesses include wholesalers, shipping companies, and software companies.

Making sales

• B2C sales are typically smaller and made by individuals. The sales process is relatively simple and can be near instant (e.g., contactless payments).
• B2B sales require research and approval from multiple stakeholders. The sales process is time consuming and can require customization.

Marketing

• B2C marketing may focus on a product’s emotional or social benefits. Brand power is significant in B2C commerce.
• B2B marketing is traditionally features-based and geared toward specific clients, although B2C trends have influence. For example, 95% of brands using B2B influencer marketing, a common tactic in the consumer market, say that it helped them meet marketing goals.

Pricing and payment

• In B2C, consumers pay the same price for the same products.
• With B2B pricing, businesses negotiate prices and payment terms and may not pay upfront.

Generally speaking, B2C is the most popular business model for anyone building an ecommerce store. Other business models include consumer-to-consumer (C2C) marketplaces, and consumer to business (C2B), where consumers sell content, advertising space, and other assets to businesses.

5 examples of B2C in the digital landscape

Online B2C companies vary significantly in how they monetize content and reach consumers. 

Five B2C models for selling online are:

1. Direct sellers
2. Online intermediaries
3. Advertising content
4. Community-based
5. Fee and subscription

1. Direct sellers

Whether they are large national manufacturers or small local businesses, direct sellers allow customers to purchase products or services directly from their websites or apps.

Examples of B2C direct sellers

• Allbirds sells sustainably made shoes directly to consumers through its website.
• Gymshark, the fitness apparel and accessories brand, sells workout clothing and fitness accessories to consumers.
• Kotn sells consciously created and trendy apparel directly to consumers through its website. 

Even though they list or buy products from other businesses, online department stores such as Amazon and Zappos are B2C direct sellers since they also sell directly to consumers.

2. Online intermediaries

Intermediaries connect buyers and sellers. Instead of owning products or services, they leverage marketing and search engine optimization to create marketplaces, product subscriptions, or comparison sites that match interested consumers with vendors. 

Examples of online intermediaries that use comparison shopping include travel websites such as Expedia, Trivago, and the price comparison platform Google Shopping.

Many comparison sites use metrics like price and reviews to aggregate the “best products” for consumers and help them discover deals.

Although online intermediaries engage in B2B sales by charging commissions from vendors and advertisers, individuals are their end consumers.

Examples of B2C online intermediaries

• Shop supports Shopify merchants with a dedicated marketplace connecting them to online consumers.
• Colorado Crafted curates gift boxes to introduce its customers to new brands. 
• United By Blue connects outdoor adventure lovers with sustainable brands.

3. Advertising content

An advertising-based B2C approach connects businesses to consumers through popular content. This model uses free content to attract visitors to a website or social media channel where they’ll encounter products.

An ecommerce business running ads on platforms such as Facebook, Instagram, and YouTube falls under the B2C advertising umbrella.

Advertising-based businesses can also target B2B commerce by creating ads and ad spaces for other businesses. 

Examples of advertising-based B2C businesses

• Facebook helps marketers target ads to people based on its users’ activities and interests. 
• Snapchat and Instagram provide advertising platforms through their sponsored filters, posts, and Stories businesses can use to engage consumers.
• HuffPost and Observer create popular content for the purpose of selling adjacent advertising space for businesses to communicate to customers.

4. Community-based

The community-based B2C business model builds groups around shared interests or concerns, from photography buffs to people with diabetes to marching band members. A growing number of community-based websites and apps like Nextdoor let advertisers market their products directly to relevant consumers.

Examples of community-based B2C businesses

• Pinterest lets businesses advertise products to interested consumers through sponsored pins.
• Reddit’s online forum provides groups, threads, and feeds for specific niches. 

5. Fee and subscription

Fee- and subscription-based B2C businesses are direct-to-consumer sites that charge customers a subscription fee for access to content or consumable products.

Many subscription publications and streaming services incorporate B2B and B2C audiences into their models. Streaming service Hulu, for example, sells businesses advertising space throughout the content that it charges individuals subscription fees to access.

Examples of B2C subscription businesses

• Loot Crate is a subscription-based business that connects consumers with pop culture brands.
• Twitch, a video game streaming platform that invites social media sharing, lets its affiliate streamers charge subscription fees. 
• Splash Wines lets subscribers curate cases of wine, then delivers them at a discount.

B2C and its role in retail 

Before B2C ecommerce became widespread, retail followed a linear order of operations. Typically, it would go like this: 

1. A supplier or manufacturer makes the product.
2. The brand purchases the product from the supplier or manufacturer.
3. The brand sells the product to a retail store.
4. The retail store sells the product to the consumer.

But now, ecommerce has eliminated the final steps. Instead, it goes more like this: 

1. A supplier or manufacturer makes the product.
2. The brand purchases the product from the supplier or manufacturer.
3. The brand sells the product to the consumer.

This type ofB2C cuts out the retailer as an intermediary, saving consumers from retailer markups and fostering closer, direct relationships between brands and customers.

Benefits of B2C

Let’s take a look at some of the benefits of B2C:

Lower prices

Direct-to-consumer businesses often charge less since they don’t have to pay third-party intermediaries. Fewer touchpoints in between seller and consumer means fewer fulfillment costs, giving business owners greater control over pricing.

Reach

Ecommerce B2C businesses can stay continually open to customers worldwide. Even small businesses with a local brick-and-mortar presence can use a commerce solution like Shopify to sell and ship products internationally, 24/7. 

Customer data

Customer data is fuel for marketing strategies. When you sell directly, collecting and analyzing ecommerce data like conversions, email addresses, and customer behavior patterns is easy. You can then use this data to grow and improve your business. 

Ecommerce

B2C ecommerce is increasingly accessible, and you can start your own business with little or no money. Selling directly to consumers online eliminates the expenses associated with physical retail stores potentially putting your new business on a level field with established brands. 

B2C challenges

While the B2C model offers benefits, it also presents challenges. Here are some common hurdles, plus tips for overcoming them: 

Creating a user-friendly website

A well-designed, easy-to-navigate website is crucial for B2C companies, and you won’t have success without one. Luckily, Shopify offers a range of customizable themes and an intuitive interface that makes managing an online store easy.

Handling payment processing

When you’re selling directly to consumers, you must offer an easy checkout experience. Consumers expect multiple and flexible payment options and convenient shipping, whether you’re a mom-and-pop website or a large retailer. 

All Shopify plans include a secure, high-converting online checkout that supports multiple payment options. There’s also a simple POS system for brick-and-mortar stores.

Mastering SEO

To rise to the top of search engine rankings, businesses must optimize their content for SEO. That means managing a portfolio of regularly created content, staying updated on the latest AI trends and tech, and optimizing all content for SEO algorithm changes and AI search enhancements. 

B2C: The future of business

Business-to-consumer models continue to drive innovation, changing how shoppers find and buy products. With the advent of ecommerce, businesses have reached a global, 24/7 audience without third-party help.

Global B2C ecommerce sales are expected to reach $8 trillion by 2027. Join the B2C revolution with a free trial of Shopify’s ecommerce tools.

Business to consumer FAQ

What is an example of B2C?

A t-shirt brand that sells shirts to consumers online is an example of a B2C business.

What’s the difference between B2C and B2B?

B2C (business to consumer) is a business model where products and services are sold directly to the consumer. B2B (business to business) is a business that sells products or services to other companies.

Why is B2C a popular business model?

B2C is a popular business model for many reasons, including:

• A faster sales cycle
• Larger potential audience
• Ability to charge less for products and services
• Lower operational and overhead costs

What are some strategies for B2C success?

Successful B2C strategies require understanding consumer needs and offering high-quality solutions to meet them. Digital marketing strategies such as SEO, social media marketing, and email marketing are crucial. Businesses should also leverage data analytics to understand consumer preferences. Ensuring a seamless online shopping experience can enhance customer satisfaction and loyalty.