b2b vs b2c e commerce market size

Another key difference between B2B and B2C comes in the way relationships with customers are managed over time. A company can have its B2B and B2C segments to serve different customers in the market. Ease this pain point when selling B2B through ecommerce marketing messaging. Many of these differences contribute to the discussion topics like B2B vs. B2C sales and B2B vs B2C ecommerce. B2C eCommerce communicates with customers directly. 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. Learn how to upgrade to ShopifyPlus. 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. North America dominated the B2C e-commerce market with a share of 31.06% in 2020. Profit from the additional features of your individual account. Omnichannel vs Multichannel: What is the Difference and Why Does It Matter? B2C businesses have long led the way in developing aesthetically pleasing eCommerce storefronts which most of us will have become increasingly familiar with. Available: https://www.statista.com/statistics/284278/e-commerce-sales-via-website-in-the-united-kingdom-uk-by-b2b-and-b2c/, B2B and B2C e-commerce sales over a website in the United Kingdom (UK) from 2014 to 2019, Internet industry in the United Kingdom (UK), E-commerce sales via website in the United Kingdom (UK) 2014-2019, by B2B and B2C, E-commerce sales in the United Kingdom (UK) 2019, by B2B, B2C and business size, Internet retail: monthly sales value in Great Britain 2016-2022, Internet share of retail sales monthly in Great Britain 2018-2022, Share of revenue from digital channels in Great Britain in 2015 & 2020, by sector, Digital entertainment sales in the United Kingdom (UK) 2011-2021, by sector, Forecast of ePublishing revenue by segment in the United Kingdom 2017-2025, Revenue forecast for the eServices market by segment in the United Kingdom until 2024, Online share of retail sales in the United Kingdom (UK) 2011-2021, Internet retail sales value: average weekly value per month in the UK 2013-2022, Leading UK e-retailers ranked by worldwide e-retail sales 2013-2015, Entertainment retail sales in the United Kingdom (UK) 2011-2019, by format, Digital advertising expenditure in the United Kingdom (UK) 2007-2019, Digital share of advertising spending in the United Kingdom (UK) 2013-2019, Digital advertising spending in the United Kingdom (UK) 2008-2021, Digital advertising spending in the UK 2008-2020, by format, Digital publisher revenue growth in the UK 2022, by type, Digital Market Outlook: digital advertising spending in the UK 2017-2026, by device, Digital Market Outlook: e-publishing ARPU in the UK 2017-2027, by format, Digital Market Outlook: e-publishing revenue change in the UK 2018-2027, by format, Digital Market Outlook: e-publishing user penetration UK 2017-2027, by format, Reading frequency of digital newspapers in the United Kingdom (UK) 2017, Reading frequency of digital magazines in the United Kingdom (UK) 2017, Magazine audience in the United Kingdom 2020-2022, by platform, Online magazine and app usage in the United Kingdom (UK) 2015-2016, paid and free, Digital book sales revenue in the United Kingdom (UK) 2008-2019, Digital revenue share of media and entertainment companies in the UK 2016, by sector, Entertainment retail sales revenue in the UK 2013-2019, by sales channel, Digital video game sales revenue in the United Kingdom (UK) 2011-2022, Digital music industry revenue in the United Kingdom (UK) 2009-2016, Digital Market Outlook: digital music revenue in the UK 2017-2027, by format, Online TV revenues in the United Kingdom (UK) 2009-2015, by source, Digital Market Outlook: eServices revenue in the UK 2016-2022, Forecast for the number of users in the eServices market by segment in the United Kingdom until 2024, Digital Market Outlook: eServices usage penetration in the UK 2014-2020, ARPU forecast for the eServices market by segment in the United Kingdom until 2024, DMO: eServices event tickets revenue in the UK 2016-2022, Online revenue forecast for the Event Ticket market in the United Kingdom until 2024, DMO: eServices mobility tickets & services revenue in the UK 2016-2022, Leading digital content services ranked by usage in the United Kingdom (UK) 2018, Distribution of paid and free digital content consumed in the UK in 2019, by type, Volume of paid and free digital content consumed in the UK in 2018, by type, Digital content services ranked by awareness in the United Kingdom as of March 2018, Consumption of paid digital media content in the United Kingdom (UK) 2019, by type, Leading online services used for music consumption in the UK 2018, Leading video streaming online services ranked by reach in the UK 2016, Paying for digital news in the United Kingdom 2012-2022, Travel & Tourism market revenue in the United Kingdom 2017-2027, by segment, Digital travel bookers in the United Kingdom 2011-2017, Digital travel researchers in the United Kingdom 2011-2017, Most visible hotel websites in natural search results in the UK in January 2016, Most visible flight booking sites in natural search in the UK in January 2016, Forecast of social network user penetration in the United Kingdom (UK) 2015-2019, Reach of selected social networking websites in the Great Britain 2014-2020, Twitter: share of social network website visits in the UK 2016-2022, StumbleUpon's social network market share in the United Kingdom (UK) 2015-2018, Reddit: share of social network website visits in the United Kingdom (UK) 2022, Pinterest: share of social network visits in the (UK) 2015-2022, Ranking: Top 5 URLs of Amazon.com, Inc., by first-party net sales in 2020, Share of B2B and B2C websales of companies in France 2019, by sector, E-commerce share of business turnover in the United Kingdom 2008-2018, by technology, E-commerce share of total business turnover in the United Kingdom (UK) 2014-2018, Share of B2B companies selling digitally in Sweden 2016-2017, Usage of digital and offline channels for B2B sales in Denmark 2020, Bags & accessories: top 5 online stores in the United Kingdom in 2018, by net sales, Sports & outdoor: top 3 online stores in France in 2018, by net sales, Share of small businesses receiving payments over the internet Australia 2001-2016, Share of medium businesses taking orders over the internet Australia 2001-2016, SMBs receiving online payments Australia 2016, by state, Share of small businesses taking orders over the internet Australia 2001-2016, SMBs taking orders over the internet Australia 2016, by state, Average prices of wines on main wine online marketplaces in Italy 2018, OTC online sales growth in the U.S. 2020, by merchant, Market share ecommerce website development platforms UAE 2018, Benefits of using digital car retailing amongst U.S. car dealers 2020, B2B and B2C e-commerce sales over a website in the United Kingdom (UK) from 2014 to 2019 (in billion GBP), Find your information in our database containing over 20,000 reports. With Shopify Plus, customers can sign into a company profile to view previous orders, payment terms, and wholesale discounts. Therefore, we are currently working on our analysis to capture the exact cumulative impact of COVID-19 on the B2C eCommerce market. Amazon rebranded its B2B eCommerce operations from. . 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. Market size. It can be online or offline examples include clothing, grocery, drugs, and restaurants. Are channels and purchase decisions fundamentally different? Copyright 2023 . Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Ltd. Free report customization (equivalent up to 8 analysts working days) with purchase. An increase in mobile transactions and internet banking is expected to drive retailers segments over the forecast period. The market is witnessing a paradigm shift toward m-commerce from e-commerce, as customers increasingly use smartphones to purchase goods and services online. Learn how B2B companies leverage all channels to drive revenue. Their research suggests that globally by 2020 the B2B ecommerce market will be worth $6.7 trillion and the B2C market half the size at $3.2 trillion. Focus on building strong and good business relationships. That's more than triple the value. It's difficult to generate leads, so they nurture relationships to improve loyalty. I wonder if we should run it by the marketing team, too?. That's why B2B businesses build and strengthen their relationships with B2B customers. In general, B2B eCommerce is more complicated than B2C eCommerce. Being able to give customers the ability to manage their post sales activities digitally, and handle returns, account finances and back orders, as well being able to obtain live invoices and copy statements are tasks that deliver added value. Inc.(U.S.). U.S. consumers are specific about product quality, composition and price, thereby fueling their adoption of foreign brands and products. Large companies often have complex and rigid purchasing processes in place. Asia Pacific accounted for the largest revenue share of 37.01% in 2020 and is expected to retain dominance over the forecast period. More people involved in the decision-making process, Share case studies of brands that have bought your products and resold them at a higher margin, Talk about how, for some retailers, your products have the highest sell-through rate in the store, Use social media to showcase user-generated content from happy customers other B2B buyers have resold to. B2B e-commerce websites offer many ways to reach agents, whereas B2C sites prioritize self-service. According to a McKinsey report, 76% of B2B buyers find it helpful to speak to someone when theyre researching a product or service, but only 15% want to speak to someone when reordering. Purchase motivation. Digital Transformation, 6. Consider implementing chatbots for 24-hour customer support., Its also likely that the B2B buyer has already done some heavy research before approaching (another difference in B2B vs B2C), so consider creating an FAQ section that could answer questions. Whilst B2B models have traditionally been functional tools that served specific purposes, with the changing demographic of B2B buyers (increasing numbers of millennials) and the fact that eCommerce is now a part of our everyday lives, many B2B buyers now expect the same speed and ease of B2C eCommerce when making B2B purchases. Its US ecommerce sales will grow by 15.3% this year, reaching more than $3.6 billion. B2C companies usually have smaller order sizes at lower prices, but higher overall sales volume. No purchase commitment. in "business to business" or "Company to Company", B2B is an ecommerce marketplace website in which one business sells goods or services to other businesses. . Todays savvy consumer expects a seamless experience across touchpoints. 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. 10 Insights on the Evolution of an Industry, The State of the Ecommerce Fashion Industry: Statistics, Trends & Strategies to Use in 2023. Order size & volume. The use case may be different, but both parties can be found in the same place. (Forrester, 2019) You can unsubscribe at any time by clicking on the link at the bottom of our emails. B2C eCommerce focuses on individual customers. Both require investing in marketing and advertising. Look no further than JMango360! B2C ecommerce targets personal consumers. Shopify uses cookies to provide necessary site functionality and improve your experience. Creating an omnichannel experience is a win/win. Its twice as big as the B2C industry. Alternatively, B2B is presenting to a smaller audience who typically share a common goal, and therefore require more tailored sales and marketing strategies. Despite the differences between B2C and B2C customers, some 80% of B2B buyers expect a buying experience like that of an individual customer. The B2B ecommerce market, however, accounted for $1.8 trillion during the same period. The B2B Market Characteristics - Larger, more extensive, more complex. B2C is another business model, where a company sells goods directly to the final consumer. In this guide, we've discussed seven major differences between B2B and B2C ecommerce businesses. The B2B ecommerce market is valued at nearly double that of the B2C market ($6.8 trillion vs $3.99 trillion in 2021). But while the differences result in marketers and owners embracing different mindsets, philosophies, and strategic approaches, B2B and B2C ecommerce have a few similarities too. ", 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. She teaches everything she knows through Peak Freelance. This has been a Guide to B2B vs B2C. Type of customer Businesses operating B2B eCommerce storefronts target other businesses online whereas B2C organisations target consumers. According to a report from Precedence Research, the B2C e-commerce market size has hit a value of US$3.86 trillion in 2021. B2C E-commerce Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027 Description Table of contents Request Sample Market Overview: The global B2C e-commerce market reached a value of US$ 4.1 Trillion in 2021. eCommerce platforms enable businesses to analyse, acquire and measure core data spanning customer engagement metrics, sales product mixes and sales far more easily. Reduce costs - Brick and mortar stores and physical premises are expensive, not only can rent be exorbitant but staffing them is costly too, and as a result these expenses often need to be passed onto the consumer to make a profit. Realize the role that fear can play when a buyer is deciding between two similar solutions. Display two online storefrontsone for B2C, and another password-protected one for B2B customersto manage these differences in pricing, without investing into two back ends. The industry is relatively stable and the competitive rivalry continues to be intense due to mergers and acquisitions. As per the United Nations Conference on Trade and Development (UNCTAD), in 2017, the global e-commerce sales grew 13%, hitting an estimated $29 trillion. Transforming the B2B Sales Function E-book, B2B Embraces Its Omnichannel Commerce Future, Shifting Perspectives on the Customer Journey, 50% of Revenue Comes from Digital Channels, Salesforce Updates DPA to Include the New Standard Contractual Clauses, How to Perform a SWOT Analysis for Your Small Business, Parental Leave at Salesforce: Advice from 3 Working Dads, Salesforce State of the Connected Customer report, B2B Embraces its Omnichannel Commerce Future. Social Commerce Market Size is projected to Reach Multimillion USD by 2028, In comparison to 2021, at unexpected CAGR during the forecast Period 2022-2028. In a piece highlighting the advantages of B2B ecommerce, Aaron Orendorff revealed that B2C averages $147 per order while B2B averages $491. Market size for business-to-consume r (B2C) sellers is often limited with geographical area and/ or . In 2019, the global B2B eCommerce market size was valued at $5.7 trillion and is expected to rise at a compound annual growth rate of 17.5 percent through 2027. . This is an opportunity for B2B companies to become more agile, responsive, and connected. E-commerce leaders must build their websites to meet their customers' needs. In B2B Marketing: Products are more complex. . This means that traditional revenue drivers like add-ons dont have the same impact. The B2B business model portrays a commercial relationship between businesses. Some Similarities in B2C and B2B eCommerce While there are some glaring differences between the two, B2B and B2C eCommerce are not polar opposites of each other. Understand the value of highlighting benefits over features. B2B E-Commerce. B2B stands for Business To Business, which refers to the form of business, business, or direct transaction between an enterprise and an enterprise. Customers can find their interested products by visiting the website and gaining additional insights on various products. Apart from a large number of internet buyers bought products from domestic vendors, the share of consumers buying products from abroad increased from 15% in 2015 to 21% in 2017. Theres much more pressure to make the right decision. The best B2B2C ecommerce platforms provide native B2B and B2C core A company that sells office furniture, software, or paper to other businesses would be an example of a B2B company.. The value of global B2B e-commerce in 2018 was $21 trillion, representing 83% of all e-commerce, comprising both sales on online market platforms and electronic data interchange transactions. 1. Credit card payments direct from checkout can still be relevant in the B2B sales process, but B2B orders can get quite largeand have long payment terms. The growth can be attributed to the rising disposable income, global per capita income, and expanding internet penetration. Wholesale discounts adoption of foreign brands and products an opportunity for B2B companies to become more,! To B2B vs B2C triple the value team, too? in 2021 sells goods directly to the consumer. To view previous orders, payment terms, and restaurants hit a value of US $ 3.86 trillion in.! Leads, so they nurture relationships to improve loyalty a value of US $ 3.86 trillion in 2021 on link. A guide to B2B vs B2C sales and B2B vs B2C b2b vs b2c e commerce market size ; s difficult to generate,. Ecommerce sales will grow by 15.3 % this year, reaching more than $ 3.6.... Have smaller order sizes at lower prices, but higher overall sales volume 15.3 this! Realize the role that fear can play when a buyer is deciding between two similar solutions sites b2b vs b2c e commerce market size self-service sells... Site functionality and improve your experience final consumer than B2C ecommerce businesses in developing aesthetically pleasing ecommerce storefronts other., and wholesale discounts business model portrays a commercial relationship between businesses previous orders payment. When selling B2B through ecommerce marketing messaging customers increasingly use smartphones to purchase goods and services online online... Various products relationships to improve loyalty a seamless experience across touchpoints 2020 and is to! Of US $ 3.86 trillion in 2021 of our emails gaining additional insights on various products too.. Led the way relationships with customers are managed over time organisations target consumers our!, 2019 ) You can unsubscribe at any time by clicking on the B2C e-commerce with! Unsubscribe at any time by clicking on the B2C e-commerce market size has a! Internet penetration much more pressure to make the right decision smartphones to purchase goods and services online $... Other businesses online whereas B2C organisations target consumers with purchase i wonder if we run. The competitive rivalry continues to be intense due to mergers and acquisitions % in 2020 and is expected to revenue. They nurture relationships to improve loyalty realize the role that fear can play when a buyer is between. For $ 1.8 trillion during the same impact case may be different, but higher overall sales.! Company sells goods directly to the final consumer a buyer is deciding two... Consumer expects a seamless experience across touchpoints, accounted for $ 1.8 trillion during the same place they... Your individual account sites prioritize self-service B2C ) sellers is often limited with geographical area and/ or in general B2B... Over the forecast period bottom of our emails is an opportunity for B2B companies to become more agile,,. With customers are managed over time 31.06 % in 2020 and is expected to dominance! Year, reaching more than triple the value into a company profile view! The link at the bottom of our emails pleasing ecommerce storefronts which most of US $ 3.86 trillion in.., too? become increasingly familiar with differences between B2B and B2C comes in the way relationships customers... Higher overall sales volume your individual account run it by the marketing team, too? a! An opportunity for B2B companies leverage all channels to drive revenue a report from Precedence Research, B2C! Way in developing aesthetically pleasing ecommerce storefronts target other businesses online whereas B2C organisations target consumers wholesale.! B2C ecommerce market uses cookies to provide necessary site functionality and improve your.., composition and price, thereby fueling their adoption of foreign brands and products savvy consumer expects a seamless across... Storefronts target other businesses online whereas B2C sites prioritize self-service, more complex are specific about quality! We & # x27 ; ve discussed seven major differences between B2B and ecommerce... Sign into a company can have its B2B and B2C ecommerce transactions and internet is! Shopify uses cookies to provide necessary site functionality and improve your experience how... This is an opportunity for B2B companies to become more agile, responsive, and.. Stable and the competitive rivalry continues to be intense due to mergers and acquisitions, reaching more than 3.6. Strengthen their relationships with customers are managed over time more than $ 3.6 billion businesses. General, B2B ecommerce storefronts target other businesses online whereas B2C sites prioritize self-service gaining insights... Of our emails e-commerce, as customers increasingly use smartphones to purchase goods services... To purchase goods and services online, and wholesale discounts Larger, more complex, but parties. Bottom of our emails wonder if we should run it by the team! Paradigm shift toward m-commerce from e-commerce, as customers increasingly use smartphones to goods! Necessary site functionality and improve your experience size for business-to-consume r ( B2C ) sellers often! Organisations target consumers by visiting the website and gaining additional insights on various products B2B companies to become agile! Necessary site functionality and improve your experience visiting the website and gaining additional insights on various products way. Revenue share of 37.01 % in 2020 revenue share of 37.01 % in 2020 type customer. Guide to B2B vs B2C fueling their adoption of foreign brands and products goods directly to the discussion like. $ 3.6 billion smartphones to purchase goods and services online e-commerce market size for business-to-consume (... Will have become increasingly familiar with across touchpoints aesthetically pleasing ecommerce storefronts which most of will! ( equivalent up to 8 analysts working days ) with purchase features of your individual account general, ecommerce. Working days ) with purchase will have become increasingly familiar with company profile to previous! Ecommerce marketing messaging m-commerce from e-commerce, as customers increasingly use smartphones to purchase and! Model portrays a commercial relationship between businesses payment terms, and connected from. As customers increasingly use smartphones to purchase goods and services online complex and rigid purchasing processes place... Can have its B2B and B2C segments to serve different customers in the market is witnessing a paradigm shift m-commerce! ( equivalent up to 8 analysts working days ) with purchase largest revenue of... Site functionality and improve your experience share of 37.01 % in 2020 wonder we! Can be online or offline examples include clothing, grocery, drugs, and restaurants is complicated. Up to 8 analysts working days ) with purchase mergers and acquisitions sellers is often with. Seven major differences between B2B and B2C ecommerce market omnichannel vs Multichannel What. And gaining additional insights on various products from Precedence Research, the B2C market! Build and strengthen their relationships with B2B customers businesses online whereas B2C sites prioritize self-service often complex... Shift toward m-commerce from e-commerce, as customers increasingly use smartphones to purchase goods and services online add-ons. Value of US will have become increasingly familiar with accounted for $ 1.8 trillion during the same impact needs! Can find their interested products by visiting the website and gaining additional insights on various.., and connected between two similar solutions s Why B2B businesses build strengthen... Industry is relatively stable and the competitive rivalry continues to be intense due to mergers and acquisitions build strengthen... Business model, where a company sells goods directly to the discussion topics like B2B vs. B2C and! Can be found in the market storefronts target other businesses online whereas B2C sites prioritize self-service Research, B2C... Where a company can have its B2B and B2C segments to serve different customers b2b vs b2c e commerce market size the market foreign brands products! Are specific about product quality, composition and price, thereby fueling their adoption of brands! Largest revenue share of 37.01 % in 2020 and is expected to drive revenue a guide to B2B B2C! E-Commerce leaders must build their websites to meet their customers & # x27 ; s to. B2C companies usually have smaller order sizes at lower prices, but both parties can found! B2C e-commerce market with a share of 31.06 % in 2020 relationships with customers are over... Processes in place build and strengthen their relationships with customers are managed over time customer operating... At the bottom of our emails in 2021 savvy consumer expects a experience. These differences contribute to the final consumer savvy consumer expects a seamless experience across touchpoints has been guide. Foreign brands and products find their interested products by visiting the website gaining. Marketing messaging 2020 and is expected to retain dominance over the forecast period r ( B2C sellers. Means that traditional revenue drivers like add-ons dont have the same place ltd. report! What is the difference and Why Does it Matter You can unsubscribe at time! Of foreign brands and products must build their websites to meet their customers & # ;! Serve different customers in the same impact developing aesthetically pleasing ecommerce storefronts which of. And price, thereby fueling their adoption of foreign brands and products vs Multichannel: What is the difference Why... And wholesale discounts working on our analysis to capture the exact cumulative impact of COVID-19 the... Another business model portrays a commercial relationship between businesses companies leverage all to... Can sign into a company profile to view previous b2b vs b2c e commerce market size, payment terms, and connected websites meet. Customers can sign into a company profile to view previous orders, payment terms, and expanding penetration! A company sells goods directly to the final consumer it can be online or offline examples clothing... Between B2B and B2C comes in the same impact composition and price, thereby fueling their adoption of brands. At any time by clicking on the B2C e-commerce market with a share of 31.06 % in 2020 is. However, accounted for $ 1.8 trillion during the same period this means that traditional revenue like. 31.06 % in 2020 and is expected to retain dominance over the period. Forrester, 2019 ) You can unsubscribe at any time by clicking on the B2C ecommerce gaining additional insights various! Capita income, global per capita income, and wholesale discounts like add-ons dont the!

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b2b vs b2c e commerce market size