B2B2C: Definition, challenges, and explanations

The term B2B2C refers to a hybrid business model that integrates both business-to-business (B2B) and business-to-consumer (B2C) models. It is a strategy whereby a company sells its products or services to another company, which in turn offers them to end consumers.

This model aims to combine the advantages of business-to-business and direct-to-consumer sales by mediating the sales channel with a partner or intermediary.

B2B2C thus creates synergy between the various players in the value chain, ensuring that products or services are available to the end customer via a network of partner companies.

Using the B2B2C model offers several strategic advantages. It allows the company to access new markets through intermediaries that already have an established customer base.

This model is particularly attractive for gaining visibility and commercial reach while benefiting from the expertise and network of commercial partners.

In addition, it offers the possibility of maintaining a relationship with and knowledge of the end customer, which is essential for tailoring the offering, personalizing the user experience, and strengthening loyalty.

In concrete terms, the B2B2C model involves three main players: the supplier, the intermediary (another company), and the end customer.

The supplier sells its products or services to the intermediary, who then distributes them to consumers. The intermediary may be a reseller, an online platform, or any other type of business.

The unique feature of B2B2C is that the supplier can also maintain a direct link with the end customer, thereby controlling the user experience, but relying on an established distribution channel.

The B2B2C model offers several significant advantages:

• Market expansion: Access to a wider customer base through the partner network.
• Distribution optimization: Use of established channels for fast and efficient dissemination.
• Stronger customer relations: Ability to maintain direct contact with the end customer to better meet their expectations.

However, it also has certain disadvantages:

• Dependence on intermediaries: Commercial success depends heavily on the quality and reliability of partners.
• Management complexity: Coordination between multiple stakeholders can be complex and requires good organization.
• Risks of brand dilution: Brand image may be affected if partners do not comply with quality standards.

A common example of B2B2C is food manufacturers who sell to distributors, who themselves are in direct contact with end consumers in retail stores.

In the digital sector, a software company can sell to a SaaS platform, which then offers the solutions to its users.

Another use case can be found in the fashion industry, where brands collaborate with boutiques or e-commerce platforms to reach consumers directly while benefiting from the expertise of intermediaries.

• Wikipedia B2B2C
• Shopify: Understanding B2B2C
• Alokai