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B to B to C
B2B2C (business-to-business-to-consumer) is a business model where online, or e-commerce, businesses and portals reach new markets and customers by partnering with consumer-oriented product and service businesses. A business developing a product, service or solution partners with another business to use a particular service, such as an e-commerce website, portal or blog. The two business combine forces and promote mutually beneficial products, services and/or solutions.
B2B2C can help a company market its product or service more effectively by entering a B2B relationship with a company whose expertise is selling online -- a B2C (Business2Consumer or Business-to-Consumer) company. In return, the B2C company is able to offer its customers more options. Often, a third entity serves as a middleman to move goods between the provider and the e-commerce vendor or to aggregate customers the other two parties want to reach.
In a B2B2C arrangement, the product or service provider might pay the B2C e-commerce company for sales leads, actual sales or the names of users of its e-commerce site, or for help building brand recognition. The B2C company might also earn a share of the revenue from the products and services it sells, or gain new customers who are interested in the business partner's offerings.
B2B2C can raise significant issues of integrating the business processes and IT systems of the partners, especially back-end systems, such as accounting, ERP and warehouse management. Transactions on the e-commerce site might need to be recorded in the back-end systems of the partner company. Price changes in ERP might have to be reflected on the e-commerce site.
As an example of a B2B2C model, Business A pays Business B for users, leads or sales generated by Business B's business or website. Business A then uses Business B's channels to locate prospective customers. Business B provides its customers with new and relevant services, facilitating an increased customer base and earned revenue for sold products and services.
B2B2C can help a company market its product or service more effectively by entering a B2B relationship with a company whose expertise is selling online -- a B2C (Business2Consumer or Business-to-Consumer) company. In return, the B2C company is able to offer its customers more options. Often, a third entity serves as a middleman to move goods between the provider and the e-commerce vendor or to aggregate customers the other two parties want to reach.
In a B2B2C arrangement, the product or service provider might pay the B2C e-commerce company for sales leads, actual sales or the names of users of its e-commerce site, or for help building brand recognition. The B2C company might also earn a share of the revenue from the products and services it sells, or gain new customers who are interested in the business partner's offerings.
B2B2C can raise significant issues of integrating the business processes and IT systems of the partners, especially back-end systems, such as accounting, ERP and warehouse management. Transactions on the e-commerce site might need to be recorded in the back-end systems of the partner company. Price changes in ERP might have to be reflected on the e-commerce site.
As an example of a B2B2C model, Business A pays Business B for users, leads or sales generated by Business B's business or website. Business A then uses Business B's channels to locate prospective customers. Business B provides its customers with new and relevant services, facilitating an increased customer base and earned revenue for sold products and services.