The Difference Between B2C, B2B, and B2G Sales
Posted: Sun Dec 22, 2024 10:54 am
A market is a platform where a company sells its goods to its customers. Depending on the specifics of the business, sales are classified as B2B, B2C and B2G.
Let's look at the features of the markets philippine country code where such activities are carried out:
The abbreviation B2B stands for and literally translates from English as "business to business". Consumers here are companies - legal entities and individual entrepreneurs. They purchase goods wholesale to use them in their own production or for further resale.
The market where B2C sales take place is a trading space where the end consumers are individuals. In this territory, they buy products for personal use.
B2G is part of the B2B market. Local buyers have a special status, and the market itself is quite specific. On this platform, the state acts as a client. Products are purchased in large quantities, and trading activities are carried out through tenders, in which any state organization can become a candidate after submitting an application.
The Difference Between B2C, B2B, and B2G Sales
Features of B2C sales
This is where the largest number of buyers are located. For example, the capital market has more than 12 million people, and this is almost the entire population of Moscow. But it is obvious that it is unlikely that every resident will become a client of your company: vegetarians, for example, will never buy goods if you specialize only in meat products.
Unlike B2B, B2C sales are rarely massive. If a person comes to a grocery store, he will proceed from what he or his family needs in the near future. The purchase plan will be calculated for a maximum of several weeks in advance. In addition, such visits cannot happen every day. Another circumstance that determines the low turnover of B2C sales is that this market segment is filled with competitors.
This type of business is characterized by large investments, various difficulties in production processes, mandatory licenses and permits from government agencies, and other difficulties.
On the other hand, many problems reduce the number of competing companies in this area. They scare away people who want to start a business here. At the same time, the lack of excess retailers makes the market attractive to many entrepreneurs.
We have prepared a table for you to better understand the difference between sales in the B2B and B2C markets:
Let's look at the features of the markets philippine country code where such activities are carried out:
The abbreviation B2B stands for and literally translates from English as "business to business". Consumers here are companies - legal entities and individual entrepreneurs. They purchase goods wholesale to use them in their own production or for further resale.
The market where B2C sales take place is a trading space where the end consumers are individuals. In this territory, they buy products for personal use.
B2G is part of the B2B market. Local buyers have a special status, and the market itself is quite specific. On this platform, the state acts as a client. Products are purchased in large quantities, and trading activities are carried out through tenders, in which any state organization can become a candidate after submitting an application.
The Difference Between B2C, B2B, and B2G Sales
Features of B2C sales
This is where the largest number of buyers are located. For example, the capital market has more than 12 million people, and this is almost the entire population of Moscow. But it is obvious that it is unlikely that every resident will become a client of your company: vegetarians, for example, will never buy goods if you specialize only in meat products.
Unlike B2B, B2C sales are rarely massive. If a person comes to a grocery store, he will proceed from what he or his family needs in the near future. The purchase plan will be calculated for a maximum of several weeks in advance. In addition, such visits cannot happen every day. Another circumstance that determines the low turnover of B2C sales is that this market segment is filled with competitors.
This type of business is characterized by large investments, various difficulties in production processes, mandatory licenses and permits from government agencies, and other difficulties.
On the other hand, many problems reduce the number of competing companies in this area. They scare away people who want to start a business here. At the same time, the lack of excess retailers makes the market attractive to many entrepreneurs.
We have prepared a table for you to better understand the difference between sales in the B2B and B2C markets: