Business in one sense is a person's occupation which gives him earning which then helps him for his daily needs.
“You only have to do a few things right in your life so long as you don’t do too many things wrong.”
– Warren Buffett
Because business isn't a word play and is very complicated, there are people who call themselves businessmen who make strategies, do management and earn a living for their business.
Why do we do business. Just to live! But business is never boring. It is about investing, sharing, innovating, inventing, presenting, selling, buying, retailing, wholesaling etc. etc.
So, without any further wastage of time, let us move on to our topic after we know business as a commercial activity and an occupation to earn a living.
So what is the topic? Today we will have an understanding on what is B2C, B2B And D2C. These terms must be familiar to you if you are from a business family. Anyways, everyone must have some knowledge on business.
Okay, no time wasting. Business in simple words, is basically producing or manufacturing or buying stuff and then strategically selling it to consumers to earn money
So, first things first, what is the usage of these terms in business? Basically, these 3 terms (I have still not told you the full form) are a way in which the producer or the buyer sells his stuff to the consumers or businesspersons in 3 different ways.
The first one - B2B - is "Business to Business" is a situation where one particular business makes a commercial transaction with another.
Like let's say you are the producer. You produce steel and you have a good fame and reach because of your steel business. You know that no one buys steel just like that. People buy steel in different representations like frying pans, spoons, cookers etc.
So, you sell your steel to another business which manufactures the output (utensils etc.) and sells it to the retailer. And there, the retailer sells the goods to us, the customers.
See what's happening here? You didn't sold your product directly either to the consumer or to the retailer. Instead you sold your product to a different producer in one sense.
This is what's called "Business To Business" or selling your good to another business after which, after all the contributions and equity, money is distributed among all of them including you. This is called business.
Amazing, huh?
Second things second - B2C - which is "Business To Consumer". This means that whatever product you are selling is directly reaching your customer. Like Amazon, Walmart, Flipkart etc. use B2C Strategy for their business. Most companies that sell directly to consumers can be referred to as B2C Companies.
There is no middle man in B2C businesses. B2C mainly refers as the online retailers who sell products and services to consumers online. Unlike B2B there is no commercial transaction between one business and the other.
Like you have the final product say kitchen utensils. And then you either sell them on your website or on Amazon, Flipkart etc. where consumers can buy them directly. This is called "Business To Consumer" where you directly sell your products to your customer without any middle-man.
Third things third - D2C - also knows as "Direct To Consumer". Now wait what is this? Direct To Consumer business strategies are a type where the companies manufacture and ship off their products directly to buyers without relying on traditional stores or other middlemen. This allows D2C Companies to sell their products at lower costs than traditional consumer brands.
Now, this might a arise a debate in your minds. That, what is the difference between B2C And D2C business strategies? Well, let's understand it easily.
The only difference between the two business strategies is that in B2C, you sell different brands or others products on a website or a retail store directly to the consumer. B2C has many brands to sell. They sell other companies products like Amazon does. Exactly.
Whereas, D2C is the condition where you manufacture your own product, transport your product and sell them directly to the consumer. No retailer, nothing.
The whole profit is taken by your company. Whereas in B2C, the profit is distributed amongst the contributors or the equity holders. Equity, basically is the percentage of the company owned by someone.
So, I hope this might be clear to you all. Now we know what is B2B, B2C and D2C as well.
Last things last - Summary - Today, we've learned three new and amazing things in the world of business. That is B2B, B2C and D2C.
B2B is where you make commercial business with other companies to make profit.
B2C is where you make the final product and either sell them to online retailers like Amazon or offline retailers. The profit is distributed vice - versa.
And D2C is where you make everything, you manage the transportation and you only sell the products directly to the consumer. No middle man. And finally we understood the difference between B2C and D2C!
So, that is it for today! I hope you liked these business strategies. If you did, then give a comment!
I will come back with another mind-enlightening post for you.
“If you really look closely, most overnight successes took a long time.”
– Steve Jobs
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Thanks for reading.
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