You may have come across two terms which are often confused - Business-to-Business (B2B) retail and Business-to-Consumer (B2C) retail. In this article, we outline the key features of each model so that you know the differences between the two.
B2B Retail and B2C Retail At a Glance
B2B retail refers to businesses selling products to other businesses, while B2C retail refers to businesses selling products directly to consumers. This distinction affects pricing, purchasing processes, customer relationships, and sales strategies.
| Feature | B2B Retail | B2C Retail |
| Customer | Businesses | Individual consumers |
| Order Size | Large or bulk orders | Smaller purchases |
| Pricing | Often negotiated | Usually fixed |
| Sales Cycle | Longer | Shorter |
| Purchase Purpose | Resale or business use | Personal use |
| Example | Restaurant supplier | Clothing brand |
What is B2B Retail?
B2B (Business-to-Business) retail is the sale of products from one business to another business, rather than directly to consumers. B2B retailers typically serve wholesalers, distributors, commercial buyers, and organisations that purchase products for resale or operational use.
B2B retail transactions often involve:
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Larger order volumes
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Negotiated pricing
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Purchase orders
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Longer sales cycles than consumer retail
Example: A restaurant supplier selling ingredients and kitchen equipment to cafes, hotels, and restaurants is operating a B2B retail model.
What is B2C Retail?
B2C (Business-to-Consumer) retail is the sale of finished products directly to consumers, either in physical stores or via ecommerce websites.
B2C retail purchases are typically:
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Lower in value
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Have shorter decision-making processes
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Use standard pricing that is the same for most customers
Example: A clothing brand selling products on their ecommerce website is operating a B2C retail model.
What is a wholesaler and retailer?
A wholesaler and retailer have two different roles in the supply chain, but are often connected, as they both play a role in getting goods from manufacturers to the end consumers.
At a glance:
| Feature | Wholesaler | Retailer |
| Sales audience | Sells to businesses | Sells to consumers |
| Buying behaviour | Buys in large quantities | Buys smaller quantities |
| Pricing | Lower prices per unit | Higher prices per unit |
| Typical order | High-volume of units, with high value | Units sold individually, with low value |
What is a wholesaler?
A wholesaler purchases products from manufacturers in bulk, to sell on to businesses.
Wholesalers typically:
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Buy goods in bulk
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Offer lower per unit pricing
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Supply retailers, distributors, and commercial buyers
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Focus on large-volume orders
What is a retailer?
A retailer purchases products from wholesalers, manufacturers or distributors, to sell on to end consumers.
Retailers typically:
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Sell individual products or small quantities
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Market products to end users
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Operate physical stores, ecommerce websites, or both
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Focus on customer experience and sales
What is wholesale vs sale?
Although the terms sound similar, wholesale and sale refer to different aspects of selling products.
Wholesale is a business model where products are sold in bulk, typically to other businesses that intend to resell them or use them in their operations.
A sale usually refers to a temporary reduction in the selling price of a product. Sales can be offered to both consumers and businesses as part of a promotional campaign.
| Term | Meaning | Typical Buyer | Quantity | Pricing |
| Wholesale | Selling products in bulk to businesses | Retailers, distributors, other businesses | Large quantities | Lower price per unit |
| Sale | A temporary price reduction or promotion | Consumers or businesses | Any quantity |
Discounted from the normal price |
Here’s an example to help demonstrate the difference between wholesale and a sale:
You’re a shoe manufacturer that sells 1,000 pairs of shoes to a retailer for £20 per pair. This is a wholesale transaction.
The retailer then sells those shoes to customers for £50 per pair. This is a retail transaction.
If the retailer runs a promotion and reduces the price to £40 per pair, that is a sale.
In simple terms, wholesale is a type of distribution, whereas a sale is a pricing strategy.
The Differences between B2B Retail and B2C Retail
While both B2B and B2C retail involve selling products, they serve very different types of customers and operate in distinct ways.
The differences influence everything from how customers research products and make purchasing decisions to how businesses manage pricing, payments, and marketing strategies. Understanding the distinction between B2B and B2C retail can help businesses choose the right sales approach, improve customer experiences, and build more effective growth strategies.
The key differences between B2B retail and B2C retail can be grouped into four areas, let’s explore them in more detail:
The Purchasing Process
There are a few fundamental differences between the two models when it comes to purchasing products. Consumers buy products or services for personal use, whereas business buyers purchase products or services for use in their companies, whether as a component to help them produce their finished piece or even for use in the office. Additionally, the B2B purchasing process can be much more complicated than the B2C purchasing process. For example, decision making groups in B2B purchasing can include members from anywhere from technical, business, financial and operational departments, depending on the type of purchase. Moreover, the person selecting a product may not have responsibility for making the final purchasing decision. A large capital purchase, for example, may require authorisation at board level. In contrast, the B2C purchasing process involves just the buyer. For example, when people go to the convenience store to pick up a drink, it's a straightforward process involving only the buyer.
Prices
In B2C models, each consumer will likely pay the same price for a product as every other consumer. However, in B2B purchasing some customers may be charged at a different rate for the same product. This may occur, for example, if some customers agree to place large orders or negotiate special terms in order to get a reduced price to other customers.
Payments
Payment methods between the two models can also differ radically. For instance, B2C buyers traditionally select products and pay for them at the point of sales using payment mechanisms such as credit or debit cards, or cash. In B2B transactions, buyers select products, place an order and arrange delivery through an agreed logistics channel. Customers do not pay at the time of the order but receive an invoice which they settle within agreed payment terms.
Breadth of Audience
The final difference between B2B and B2C models is the types and size of target audiences. For example, B2C retailers often strive to reach a broadly defined group of people - anyone from sports fans to millennials who are into music or kids in general. B2C retailers have a larger target audience as a whole. By comparison, B2B retailers have a much narrower target audience - there are usually a set number of buyers, with a pretty straightforward profile. For example, a B2B retailer might only target ad agency owners or finance VPs at tech start-ups.
Can a Business Be Both B2B and B2C?
Yes, a business can operate both B2B and B2C retail models simultaneously. This approach is often referred to as a hybrid retail model and allows businesses to sell products directly to consumers while also supplying other businesses.
It’s common practice for many manufacturers, wholesalers, and ecommerce brands to use a combination of B2B and B2C sales channels to diversify their revenue streams. By serving both markets, businesses can increase sales opportunities while reducing their reliance on a single customer type and revenue source.
How Does a Hybrid B2B and B2C Model Work?
In a hybrid model, the same company sells products through different channels depending on the customer.
For example, a clothing brand might:
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Sell clothing directly to consumers through its website (B2C)
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Supply clothing in bulk to large department stores to resell (B2B)
Inventory Software for B2B and B2C Retail
There is no right or wrong way to sell your products, and whether you operate a B2B, or B2C retail model, or a combination of both, a key challenge is managing your inventory levels and ensuring you have enough product to fulfil your customers’ orders.
With inventory management software like Unleashed, you’ll always have a clear idea of what’s in stock, what orders you have to fulfil and simple re-order workflows for when your stock levels get low. With a built-in B2B ecommerce store, you can even streamline your B2B sales process, and integrate B2C ecommerce stores like Shopify and Amazon.
If you manufacture your own products, Unleashed can cover that too with easy-to-use bill of materials, assemblies and production features.
Need help managing your inventory?
- Watch an inventory management demo. Learn how Unleashed helps you track key inventory data in real-time, forecast sales demand, and set optimal stock levels to save you precious time and money.
- Sign up for a free 14-day trial. Discover first-hand how Unleashed helps you improve productivity, master order and stock management, and boost efficiency with a risk-free two-week trial.
- Chat with an expert to assess your needs. Are you ready to take your business to the next step? Book a free chat with one of our in-house experts for an honest discussion about your inventory and sales requirements.
