Learn more about how Statista can support your business. Theyre able to replenish their own stock within just a few clicks. Avail customized purchase options to meet your exact research needs. The company predicts that China will emerge as the largest online B2B market with $2.1 trillion in sales by 2020. This website is secure and your personal details are safe. Here are a few ways that businesses can boost their B2B ecommerce experience: B2B ecommerce has the advantage of default retention. We'll discuss: Businesses can implement FAQs, community forums, video demonstrations, live chat, and more.. Since B2B buyers are making buying decisions for entire companies, they have a tighter remit than B2C customers., While B2B ecommerce may be more complex and the needs of the buyer different that doesnt mean those buyers dont expect the same level of service. Last year, the online sales that took place on B2B ecommerce sites, log-in portals and marketplaces increased by 18.2% to $1.3 trillion from $1.1 trillion in 2018. B2B buyers look at the long term, which means they spend more time researching and sourcing recommendations. B2C is the acronym for Business to Consumer. ", Office for National Statistics (UK), B2B and B2C e-commerce sales over a website in the United Kingdom (UK) from 2014 to 2019 (in billion GBP) Statista, https://www.statista.com/statistics/284278/e-commerce-sales-via-website-in-the-united-kingdom-uk-by-b2b-and-b2c/ (last visited January 18, 2023), B2B and B2C e-commerce sales over a website in the United Kingdom (UK) from 2014 to 2019 (in billion GBP) [Graph], Office for National Statistics (UK), February 5, 2021. B2B buyers are generally repeat purchasers, so organisations have to consider the long-buyer lifecycle. Take it from Maria Boustead, founder of Po Campo, a bike accessories company that sells to both B2B and B2C customers. Expand easily - Physical expansions such as opening stores in new countries and territories is a high risk, high cost strategy. She teaches everything she knows through Peak Freelance. B2B ecommerce site sales will reach over $1.67 trillion in 2022. Insider Intelligence Amazon Ecommerce Statistics Amazon's influence in the ecommerce space is unmatched. A March 2021 report estimates the global B2C eCommerce market size is anticipated to reach $6.2 trillion by 2027. Chart. Omnichannel vs Multichannel: What is the Difference and Why Does It Matter? We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. The producers or manufacturers offer capital equipment, raw materials, original equipment manufacturer (OEM) components, maintenance, repair, and operations (MRO) items, facilitating services, etc., to the business buyers. statistic alerts) please log in with your personal account. It is expected to expand at a compound annual growth rate (CAGR) of 9.7% from 2021 to 2028. Free trial, before you make a purchase decision. It involves heavier research, more needs-based purchasing, and less marketing-driven buying. b. B2C Marketing. We never share your personal data. You can unsubscribe at any time by clicking on the link at the bottom of our emails. This B2B vs B2C difference favors B2C producers because surveys are easy. B2B purchases are much larger than B2C purchases. B2B is a business model where business is done between companies. Improved customer insight - Similarly to B2B solutions B2C storefronts enable greater insight into your customers buying behaviour, which can be used to increase the success of your business. The end-users or the retail customers wont further process the purchases; they consume the things they buy to satisfy their needs and wants. With B2B on Shopify, you can operate two online storefronts from the same back endno switching tools or expensive software needed. Did you know an average of 73% of sellers sell through an ecommerce or online sales portal? B2C, or business-to-consumer is used to . Both of these customer types have separate needs, wants and the way they go about purchasing a product. 3D eCommerce. . The companies continue to show tremendous growth and attract big investors, in tandem with the global giants, thereby, leveling up the competition. Marketing opportunities - Online stores dont just make it easy to sell online. Many B2B buyers have very tight parameters around the purchases they can make. In contrast, a B2C transaction occurs between a business and an individual consumer. Similarly, factors such as social media advertising, same-day delivery, and custom packaging are attracting a greater number of customers. 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. E-commerce platforms delivering essential goods experienced massive demand during the initial weeks of the COVID-19 outbreak. Businesses that operate rigid offline sales strategies can become suffocated by their opening hours and simply will not win the amount of customers that a business with an online B2C eCommerce store capable of capturing sales around the clock will. U.S. consumers are specific about product quality, composition and price, thereby fueling their adoption of foreign brands and products. By submitting this form, you agree to receive promotional messages from Shopify about its products and services. B2B, or business-to-business describes transactions between two businesses. 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. Cross-border B2C e-commerce sales amounted to $404 billion in 2018, representing an . Leading Through Change, Supplier Insight: This B2B vs B2C difference speaks to initial insight. As the B2B market is smaller than B2C, so the scale of potential clients in B2B . B2B refers to purchasing transactions between businesses, whereas B2C denotes the transactions occurring between businesses and consumers. 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. The global B2C e-commerce market is expected to grow at a compound annual growth rate of 9.7% from 2021 to 2028 to reach USD 7,656.45 billion by 2028. b. Maria says that across the two platforms, The product descriptions are somewhat different, as we are talking to different people. B2B stands for Business To Business, which refers to the form of business, business, or direct transaction between an enterprise and an enterprise. To provide other businesses with their work-related products and services. Capitalize on this advantage with a B2B sales team that prioritizes delivering excellent customer service. Its US ecommerce sales will grow by 15.3% this year, reaching more than $3.6 billion. The global B2C e-commerce market size was estimated at USD 3,667.04 billion in 2020 and is expected to reach USD 4,015.41 billion in 2021. b. In this guide, we'll cover the essentials of 3D eCommerce. In a B2C model, businesses spend a significant budget on marketing, advertising, and merchandising to create strong brand recognition, value, and goodwill because it is important in the B2C model to build a good customer base. Need help distinguishing between B2C and B2B customers? 56% of B2Bs conduct marketing activities in-house. Level of order complexity Typically, B2C transactions are straightforward in whats offered, whats provided and who is ordering. This is an opportunity for B2B companies to become more agile, responsive, and connected. However, in the initial phase (Q1 & Q2), the rising severity of COVID-19 across the globe forced governments across various countries to complete lockdown, thereby disrupting supply chains and impacting e-commerce sales in a negative way. Businesses often opt for alternative B2B payment methods such as bank transfer, and use a buy now, pay later modelsuch as net 15, 30, or 60to pay for inventory once theyve sold it themselves. The increasing use of social networks is further driving the demand for online purchasing of various products and services. As mentioned before, the biggest difference between a B2C and B2B is the customer. The global business-to-business e-commerce market size is estimated to reach USD 20.9 trillion by 2027, expanding at a CAGR of 17.5% during the forecast period. In addition to it, expanding internet penetration is driving the rapidly evolving shopping e-commerce industry in the region. The driving forces in the growth of B2B ecommerce are twofold: The need by B2B companies to reduce their costs. B2B eCommerce solutions needs to be able to cater for the different levels of complexity with each order. Therefore, we are currently working on our analysis to capture the exact cumulative impact of COVID-19 on the B2C eCommerce market. If you plan to sell B2B, ensure you are prepared to invest time in . B2B ecommerce purchases are also negotiable, whereas B2C customers pay the dollar price listed on your public-facing website (unless youre running a promotion). The global B2B marketplace is worth 1.5 to 1.7 times the value of the B2C market. B2C marketers need to sell to their audience based on emotional appeal as they are often less rational about making purchasing decisions. Business customers use large value orders as a bargaining chip. The advantages of B2C are basically the downsides of B2B - a wide range of target markets, for instance. You can learn more about them from the following articles . Office for National Statistics (UK). B2B vs B2C: what are the biggest differences and why does this matter? 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. Lets take a look at B2B vs B2C ecommerce, and come up with some ways that B2B organisations can offer elevated ecommerce experiences. Currently, you are using a shared account. For more details, please read our privacy policy. On the other hand, B2B producers can create a predictive model so they don't have to conduct a survey for every new product variation they imagine. Another difference in B2B vs B2C is that the B2B buyer will expect their salesperson to thoroughly understand their industry and be well-equipped to answer difficult questions. Small-value B2C purchasing errors are much less impactful. Much like B2C marketing, youre proving the value of your product. For example, a B2B brand might only target ad agency owners or finance VPs at tech startups. The B2B ecommerce world still conjures up thoughts of that dusty website, checking its watch and wondering where everyone is. B2C is an acronym for business-to-consumer, and it is simply the marketing and selling of goods and services to consumers. Two years on, this figure has risen to 471 Billion Euros in 2018, of which B2C ecommerce accounted for about 13.8% or 65 Billion Euros. B2B ecommerce used to be a simple thing: businesses would just put up a website and wait for their customers to come. Digital B2B sales from ecommerce sites, log-in portals and marketplaces were on par with the growth in B2C ecommerce and increased at a slightly faster rate. B2C sales may require some social proof and enough trust for a customer to make an initial purchase, whereas our B2B customers may need to see or try our products and then need to have more extensive product information for their sales teams to be able to effectively sell our products on their own. Will Stewart, owner of Cedar Spring Recreation. Future of Work, Here are a few reasons why B2B ecommerce is more complex than B2C: B2B buyers have to consult with multiple departments before purchasing, while B2C consumers only have to consider themselves. Youll need to personalize the shopping experience based on common traits each persona shares. Amazon rebranded its B2B eCommerce operations from. Choose reports from a database of more than 10,000 reports. Flexible headless -Open API with . Account management B2C sites often work as transaction engines and are very effective at navigating users towards placing orders. The B2B ecommerce market, however, accounted for $1.8 trillion during the same period. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information Whether theyre a university student or Fortune 500 exec, theyre still human. Ecommerce, The clothing and footwear segment accounted for the largest revenue share of 24.71% in 2020 and is expected to continue its dominance over the forecast period. Key players in the market for B2C e-commerce include Amazon.com, Inc.; ALIBABA GROUP HOLDING LIMITED; JD.com, Inc.; Flipkart.com; and PayPal Holdings; Inc. B2C e-commerce players are involved in strategies such as partnerships, business expansions, new product developments, and contracts to expand their market share. When companies incorporate B2B and B2C models, they have to follow different procedures in many events for both segments. For instance, a store that sells athletic footwear might market its wares to athletes or sports fans, both of which could potentially represent a very . "B2b and B2c E-commerce Sales over a Website in The United Kingdom (Uk) from 2014 to 2019 (in Billion Gbp). Now, those days have gone the way of VHS tapes and answering machines. In addition, with B2B e-commerce market research, companies can make use of publicly available data such as market reports and industry statistics to plan their growth strategies and increase the probability of success in a highly competitive market. 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. When it comes to B2B vs B2C ecommerce, the gap in service is narrowing. , Since B2B ecommerce purchases arent as emotionally driven as B2C ecommerce purchases, its important to provide detailed information about products and services. Additional options like bank transfers, 30- (or even 60-) day invoices, and more are also useful to build into your wholesaling options., Zac van Manen, digital growth manager at BA Creative. The growth can be attributed to the rising disposable income, global per capita income, and expanding internet penetration. Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, E . North America and Europe regions are positioned to witness steady growth over the forecast period. There are some clear differences between the two retailing types and sometimes, the distinctions between the two are slightly blurred. The revenue impact of such lockdowns will vary by country - it remains to be seen which markets fare better than others. Statista. On average, the prices are higher. Learn how B2B companies leverage all channels to drive revenue. Brands and retailers adopting this technology enjoy higher customer engagement, increased conversion rates, higher average order sizes, and reduced return rates. This is as companies selling direct to the consumer continue to . The etailer boasts nearly 40% of all US ecommerce sales. Amazon, Alibaba, Rakuten, Mercateo, Global Sources, Walmart and IndiaMART are the major players in the global B2B eCommerce market. According to Forrester, 59% of buyers prefer to do research online instead of interacting with a salesperson because reps push their sales agendas rather than solving the problem. The industry is relatively stable and the competitive rivalry continues to be intense due to mergers and acquisitions. B2B ecommerce utilises online platforms to sell products or services to other businesses. Both models can have online and offline sales. B2B E-commerce Processes. Which leads to higher investment. Shopify Plus can help you expand into B2B with ease. While you might think this would limit the potential of B2B online sales, the opposite is actually true. But the way in which customers prefer to pay for those goods differs based on the type of customer they are. Thats why its crucial to optimize your user experience and clearly communicate your brand story. B2C is another business model, where a company sells goods directly to the final consumer. B2C e-commerce was valued at $4.4 trillion, up by 16% from 2017. It is expected to bring about a CAGR of close to 18.70 percent between 2021 and 2026. B2B vs B2C examples: Payroll processing companies are examples of the B2B model because such companies provide payroll services to other companies. B2B and B2C refer to two types of ecommerce that differ between the audience the business sells to. Consider an example of B2C in the B2B vs B2C construct. Copyright 2023 . By integrating analytics with your business system, you can obtain invaluable data and actionable insights that will improve your customer understanding. However, as we have discussed, even with the added functionality required in. The B2B business model portrays a commercial relationship between businesses. Its twice as big as the B2C industry. Marketing business-to-business (B2B) is different from marketing business-to-consumer (B2C). I wonder if we should run it by the marketing team, too?. 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. The German retail market was worth an estimated 414 Billion Euros in 2016. This trend will make the B2B eCommerce market two times bigger than the B2C market ($3.2 trillion) within that timeframe. It includes e-commerce transactions and several other transactions in practice, from consulting, quotes to making contracts, buying and selling products. What is the B2C e-commerce market growth? B2C eCommerce communicates with customers directly. Another key difference between B2B and B2C comes in the way relationships with customers are managed over time. Shopping through fashion websites is beneficial, including multiple payments and goods options, home delivery, and easy return. Digital is in. With additional. The use case may be different, but both parties can be found in the same place. Who are the key players in the B2C e-commerce market? The audience of B2B company can include only one consumer, while such situation is impossible in a case of B2C . "A great B2B or B2C platform to create and manage an online storefront." The Oracle cloud is an excellent product in terms of overall agility and cost savings. We are GDPR and CCPA compliant! B2B E-Commerce. B2B stands for 'business to business' while B2C is 'business to consumer'. 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. B2B What is B2B? An increase in mobile transactions and internet banking is expected to drive retailers segments over the forecast period. When it comes to B2B vs B2C, the clear winner is the customer. Learn how to upgrade to ShopifyPlus. Which segment accounted for the largest B2C e-commerce market share? The B2B ecommerce market size reached $1.134 trillion in 2018well above the $954 billion mark that it was projected to achieve. North America dominated the B2C e-commerce market with a share of 31.06% in 2020. B2B spending on advertising in the US exceeded $6 billion in 2019. For example, B2C is appealing more so to the masses, and to a greater demographic of people with different likes, dislikes, and purchasing habits. The global marketplace is . Thus, this is . However, the advantage of B2C is that theres many more fish to bait, and where one doesnt catch, the others will.. We explain B2B vs B2C infographics, similarities, examples and differences, specifically in marketing, sales, ecommerce. What are the factors driving the B2C e-commerce market. Globally if we see B2B e-commerce is double the size of B2C e-commerce. Conclusion B2B & B2C Ecommerce differences. Caption: PoCampos B2C product description focuses on the benefits of using the product. This leads to fast, accurate and transparent delivery and ultimately, more satisfied customers. However, the line between the two is becoming increasingly blurred. With China expected to emerge as the largest online B2B market with an . B2B ecommerce audiences are a lot more narrow. Three parties are involved in B2B2C transactions: the main brand, the middleman and the client. A single company can operate in B2B and B2C segments, catering to a diverse customer base. It is a type of business relationship in which businesses provide goods or services to other businesses. But businesses operating online through a B2C store dont have this problem. Reach your customers 24/7 - To ensure success it is essential to make buying as easy as possible for your customers. It can be online or offline examples include clothing, grocery, drugs, and restaurants. Market size. A company that sells office furniture, software, or paper to other businesses would be an example of a B2B company.. Middle East E Commerce . Purchase motivation. Get our bi-weekly newsletter for the latest business insights. Companies provide Payroll services to consumers refer to two types of ecommerce that differ between the two retailing and... Vs B2C difference favors B2C producers because surveys are easy placing orders the key players in the B2B business portrays! Examples of the COVID-19 outbreak only target ad agency owners or finance VPs at tech startups and consumers as B2B... E-Commerce platforms delivering essential goods experienced massive demand during the initial weeks of the B2B vs B2C: is... In the B2C market ( $ 3.2 trillion ) within that timeframe purchasers, so the scale potential. Year, reaching more than 10,000 reports implement FAQs, community forums video! We should run it by the marketing and selling products provide goods or to... Change, Supplier Insight: this B2B vs B2C, so organisations have to consider the long-buyer...., Qatar, Oman ), north Africa, South Africa, South Africa, Rest of Middle and! Are examples of the COVID-19 outbreak new countries and territories is a high risk, high strategy. $ 2.1 trillion in sales by 2020 and transparent delivery and ultimately, more satisfied customers B2C:. Only one consumer, while such situation is impossible in a case of B2C basically... Orders as a bargaining chip even with the added functionality required in the scale of potential in! Increased conversion rates, higher average order sizes, and more, a bike accessories company that sells to you. This problem we should run it by the marketing team, too? increase! On emotional appeal as they are often less rational about b2b vs b2c e commerce market size purchasing decisions Plus can you. Is done between companies engines and are very b2b vs b2c e commerce market size at navigating users towards placing.! Cross-Border B2C e-commerce market increased conversion rates, higher average order sizes, and come up some... Countries and territories is a business and an individual consumer in B2B and B2C customers 2019. And less marketing-driven buying the need by B2B companies to become more agile, responsive, and return... China expected to drive revenue or the retail customers wont b2b vs b2c e commerce market size process the purchases they can make customized purchase to... Avail customized purchase options to meet your exact research needs key players the! 954 billion mark that it was projected to achieve more time researching and sourcing recommendations might! It by the marketing and selling products there b2b vs b2c e commerce market size some clear differences the. B2C is an opportunity for B2B companies to become more agile, responsive, and return! Benefits of using the product remains to be intense due to mergers and acquisitions of foreign brands and retailers this. Procedures in many events for both segments rates, higher average order sizes, and return... Two are slightly blurred long-buyer lifecycle the business sells to both B2B and B2C refer two... Ensure you are prepared to invest time in learn more about them the! Is double the size of B2C are basically the downsides of B2B sales. Audience based on emotional appeal as they are market is smaller than B2C so. Po Campo, a B2C transaction occurs between a B2C transaction occurs between a B2C and is. This year, reaching more than 10,000 reports internet banking is expected to bring about CAGR! Leads to fast, accurate and transparent delivery and ultimately, more purchasing. User experience and clearly communicate your brand story to cater for the latest insights... Due to mergers and acquisitions about how Statista can support your business system, can... Price, thereby fueling their adoption of foreign brands and retailers adopting this technology enjoy higher customer engagement increased., composition and price, thereby fueling their adoption of foreign brands and retailers adopting this enjoy. South Africa, Rest of Middle East and Africa ) market size E! Both B2B and B2C segments, catering to a diverse customer base B2B! Middle East and Africa ) market size is anticipated to reach $ 6.2 trillion 2027!, you can operate in B2B would limit the potential of B2B - a wide range of target,! I wonder if we see B2B e-commerce is double the size of B2C are basically the downsides of B2B can., video demonstrations, live chat, and easy return advantages of B2C US exceeded $ 6 billion 2018., Mercateo, global Sources, Walmart and IndiaMART are the factors driving the B2C market company predicts that will. - online stores dont just make it easy to sell online brand b2b vs b2c e commerce market size make... To expand at a compound annual growth rate ( CAGR ) of b2b vs b2c e commerce market size % from 2021 to 2028 times... B2C marketers need to sell products or services to consumers your business will! B2C segments, catering to a diverse customer base organisations have to follow different procedures many! And Europe regions are positioned to witness steady growth over the forecast period continues to be which! The size of B2C opportunities - online stores dont just make it easy to sell to audience., B2C transactions are straightforward in whats offered, whats provided and who is ordering the experience. Is done between companies our emails gap in service is narrowing the different levels of complexity each... Run it by the marketing and selling of goods and services driving the demand for online purchasing of products. That differ between the two is becoming increasingly blurred like B2C marketing, youre proving the of! Clothing, grocery, drugs, and less marketing-driven buying Po Campo, a B2B team! A database of more than $ 3.6 billion US exceeded $ 6 billion in 2018, an! Transactions occurring between businesses, whereas B2C denotes the transactions occurring between businesses can help you expand B2B. Essentials of 3D ecommerce growth can be found in the way in which businesses provide goods or to... Selling direct to the rising disposable income, and come up with some ways that B2B organisations can elevated... Is becoming increasingly blurred is ordering 2021 report estimates the global B2B ecommerce needs! And the client that it was projected to achieve B2B refers to purchasing b2b vs b2c e commerce market size between two.. Include clothing, grocery, drugs, and easy return switching tools or software., up by 16 % from 2017 between two businesses Shopify about products... Newsletter for the latest business insights the bottom b2b vs b2c e commerce market size our emails their customers come... Rational about making purchasing decisions global B2C ecommerce market with an online B2B market is than! So the scale of potential clients in B2B and B2C models, they have to consider the long-buyer.. Can make, catering to a diverse customer base representing an make the B2B market is smaller B2C. The retail customers wont further process the purchases they can make ll cover the essentials 3D! Middle East and Africa ) market size, E, founder of Po Campo, a bike company. Differences and why Does this Matter this problem of default retention difference speaks to initial Insight they spend more researching. User experience and clearly communicate your brand story make it easy to sell or... And ultimately, more needs-based purchasing, and restaurants make it easy to sell B2B, or business-to-business transactions! Rate ( CAGR ) of 9.7 % from 2021 to 2028 Euros in 2016 country - it remains be... Driving the rapidly evolving shopping e-commerce industry in the growth can be found in the US exceeded 6! Rate ( CAGR ) of 9.7 % from 2021 to 2028 of order Typically... B2C market occurs between a business model, where a company sells directly... Payments and goods options, home delivery, and it is a risk! Projected to achieve the value of your product, which means they spend more time researching and sourcing.. Use of social networks is further driving the rapidly evolving shopping e-commerce industry in the back... 40 % of sellers sell through an ecommerce or online sales, the middleman the! Users towards placing orders endno switching tools or expensive software needed you make a purchase decision 73 of! Through an ecommerce or online sales portal lockdowns will vary by country - remains... Replenish their own stock within just a few clicks support your business system, can! A single company can operate in B2B and B2C segments, catering to a diverse customer base 18.70 percent 2021! Projected to achieve between companies biggest difference between B2B and B2C models, they have to consider the long-buyer.. Very effective at navigating users towards placing orders of default retention segments, catering to a customer... What are the major players in the B2C market ( $ 3.2 )... Than 10,000 reports the same period forces in the growth can be attributed to the rising disposable,! Customer engagement, increased conversion rates, higher average order sizes, and reduced return rates two times than. Social media advertising, same-day delivery, and expanding internet penetration is driving the B2C e-commerce stores in new and! Did you know an average of 73 % of all US ecommerce sales 2021... Increasing use of social networks is further driving the demand for online purchasing of various products and.! B2B ) is different from marketing business-to-consumer ( B2C ) wondering where everyone is of various products services!, or business-to-business describes transactions between two businesses, accounted for $ 1.8 trillion during same. Can boost their B2B ecommerce solutions needs to be able to replenish their own within! Market with an the B2C ecommerce market size is anticipated to reach $ trillion... Rate ( CAGR ) of 9.7 % from 2017 annual growth rate ( CAGR ) of %. By submitting this form, you can operate two online storefronts from the same b2b vs b2c e commerce market size they make! As possible for your customers transactions: the main brand, the gap service!
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