Why Your B2B2C Ecommerce Brand Should Build B2B and B2C Online Stores

A flourishing enterprise marketplace is a reason to be happy. But is it reason enough to stick to the very same business model for eternity?

Certainly not!

The ecommerce landscape is witnessing tectonic shifts. Brands are using market insights and improved supply chains to build hybrid business models that quickly disrupt the market.

Gone are the days when just being a B2B market leader was enough to survive and thrive.

Now we have newer business models like B2B2C ecommerce completely changing the market dynamics.

Don’t believe me? 

Check out some interesting developments:

How enterprise brands are experimenting with B2B2C ecommerce and other business models

What we see here is a clear shift towards implementing different business models at the same time, which has taken the sum total percentage to more than 100%. 

In such a pulsating environment, you certainly do not want your enterprise ecommerce solutions to lag behind. The time and market are just ripe to welcome new ventures and new business models that combine the goodness of B2B and B2C models and offer new solutions to existing problems.

If there ever was a good time to experiment with your business model that time is NOW, and the business model worth considering is B2B2C ecommerce.

In this article, we take you through the benefits of diversifying your business into multiple business models and set-up your brand on an upward growth trajectory.

To begin with, let us first understand how the various business models are different from each other and how each one of them helps you in serving your customers.

Understanding B2B, B2C and B2B2C Ecommerce Business Models

Here is a brief overview of how the 3 business models are different from each other:

B2B (Business-to-Business) Ecommerce

In B2B or wholesale ecommerce, businesses sell products or services directly to other businesses through an enterprise marketplace or brand websites. B2B ecommerce is characterized by bulk orders, lots of negotiations and customized pricing for each client ( based on order volume and frequency).

B2C (Business-to-Consumer) Ecommerce

B2C or retail ecommerce is a business set-up where businesses sell products or services directly to individual consumers through an online marketplace or websites. B2C e commerce is characterized by a large number of small ticket orders having seasonal peaks and slumps depending on the type of products sold.

B2B2C (Business-to-Business-to-Consumer) Ecommerce

B2B2C ecommerce is a hybrid business model which involves collaboration between a parent business and other businesses to reach end consumers. This business model enables the B2B enterprise brand to leverage its existing vendors to reach out to the end customers. The parent brand (manufacturer or wholesaler) partners with retailers, leveraging the retailers’ distribution channels to reach a broader consumer base while maintaining a B2B relationship at its core. 

An enterprise brand can pivot to the B2B2C ecommerce channel by quickly setting up a B2C sub-store along with its main B2B store. Orders coming through the B2C channel can be easily fulfilled using the existing dealer/distributor network. The interconnections and synergies between B2B and B2C sales channels hold immense growth potential for the  

How building a B2B2C ecommerce channel will help your brand grow its business 

Building both B2C and B2B online stores is no longer a luxury but a necessity for enterprise businesses. Building a Business-to-Business-to-Consumer channel offers a vast array of opportunities for growth. 

Here is how your brand can benefit by building a B2B2C ecommerce platform for your business:

Unlock new revenue streams

By building a B2C online store and catering to retail customers through the dealer/retailer network, B2B brands can establish an additional revenue stream. Selling retail not only boosts the overall income but  also keeps the sales coming perennially. This is especially significant as B2B businesses can build a constant revenue stream from B2C, which balances out the lull period of B2B sales negotiations which might take weeks to months to finally convert.  

Wider audience base 

Having a B2B2C ecommerce platform with both B2B and B2C stores significantly grows the audience base for the parent brand. The parent B2B brand can also partner with new retailer/distributor networks and scale up to new audience segments by introducing new products and services.

Boost sales by leveraging existing dealer network 

Selling through your B2C online store generates new business opportunities for your dealers and suppliers. Solidifying your presence in new markets becomes easy when you leverage the existing warehouse and supply chain of your dealers to reach retail buyers quickly. Building a strong B2B2C ecommerce network goes a long way in boosting your overall sales.

Brand exposure and recognition

Having both B2B and B2C online stores increases customer loyalty manifold and establishes your brand as a niche B2B2C ecommerce player having the potential to cater to diverse audiences. The already strong B2B presence helps in garnering customer support for the B2C venture as well and better visibility in the B2C market.  This  goes a long way in building brand better brand recall and credibility, which eventually builds more brand value and a strong B2B customer base. 

Opportunity to cross-sell and upsell

Having a B2B2C ecommerce platform with both B2B website and B2C online store accords a unique vantage point to your business. Your brand can easily create a fluid sales channel that intersects both B2B and B2C sellers. 

For example, you deal in apparels and have a network of manufacturers who make different clothes for your wholesale buyers. You can create a retail market for your manufacturers in the B2C segment and similarly attract wholesale opportunities for your buyers from your B2C clients who might be interested in buying bulk school uniforms, clothes for gifting in bulk, uniforms for hospital/hotel staff etc. 

Better market insights

Diversifying to B2B2C ecommerce gives you a rich database of B2C buyers, which is a much bigger audience base than the B2B buyers. Whatever trends and business practices are adopted in the B2C space eventually percolate to the B2B segment as well.

Having a B2C sales channel gives you a headstart and keeps you ahead of the curve. With the B2C exposure, your enterprise marketplace is better equipped for implementing changes and enhancing customer experience in the B2B segment.  You can also learn more about which channel-market mixes are working better to further diversify your business.

Reduce overhead costs

Having a B2B2C ecommerce set-up reduces your CapEx and other overhead costs which you might have to incur otherwise if you planned a B2C set-up on your own. By leveraging the warehousing and supply chain facilities of your manufacturers and dealers you can cut substantially on overhead costs.

Business Risk Mitigation

Diversifying to the B2C sector and adopting the B2B2C ecommerce route mitigates your risk of low or slack phase in one set of business. Having both B2C and B2B online stores  makes your business versatile and gives your brand the scope for strategic business planning on both stores. You can do strategic marketing year-round to keep your sales counter ringing. 

Having a B2B and B2C stream of revenue is definitely a winning strategy for enterprise brands. Implementing and running the complex set-up can have some challenges vis-a-vis managing the humongous infrastructure and day-to-day operations.

However, all these challenges can easily be overcome by powering your business with a well-rounded B2B2C ecommerce platform like StoreHippo. With its built-in support for B2B and B2C business models and a gamut of features for running the B2B2C setup, StoreHippo gives you a winning edge and easy-to-use solutions for your enterprise brand.

Which Businesses are the best fit for adopting B2B2C Ecommerce

The B2B2C model is particularly suitable for businesses that manufacture or provide products/services and have a large dealer/retailer network. Here are 7 examples of enterprise businesses well-suited for the B2B2C ecommerce model:

Consumer Electronics Manufacturers

Companies that produce electronic devices, such as smartphones, laptops, or smart home appliances and have a strong dealer/distributor network can leverage can partner with distributors to sell their products directly to consumers on their B2C online store, leveraging the distributors' local reach and supply chain.

Beauty and Cosmetics Brands

Cosmetic companies can collaborate with retailers beauty and personal care products sellers. While having their B2B portal for retailers, these companies can also have a B2C channel where these retailers can directly sell to end customers on the beauty brand’s enterprise marketplace.

Apparel and Fashion Brands

Apparel and Fashion manufacturers can partner with retail sellers and create the retailers' brand shop on the B2B2C ecommerce platform thus offering the retailers an online presence and in turn attracting their loyal customer base and distribution network to the marketplace. 

Food and Beverage Businesses

The business-to-business-to-consumer model presents a lucrative growth opportunity for the FnB sector. Food and beverage manufacturers/stores while digitizing their wholesale channel for other businesses can also build a B2C location sub-stores network by collaborating with local grocery sellers and serving end customers directly using their vendor partners.

Home Appliance Manufacturers

Businesses that make home appliances like refrigerators, washing machines, or kitchen gadgets can collaborate with their dealer network or large appliance retail stores to build B2B2C ecommerce channels on their marketplace. With offline retail stores set up, such brands can not only leverage both B2B and B2C channels but also go omnichannel by selling online, offline and mobile apps.  

Pharma, Health and Wellness Brands

Companies manufacturing pharma and healthcare products like medicines, vitamins, supplements or health equipment etc. can build B2B online stores to sell in bulk to hospitals and retail chemist stores and also build a B2C channel to help their dealers/distributors reach a wider B2c buyer base. 

Such B2B2C ecommerce collaboration can enable the pharma manufacturers to directly sell their products to end customers at a discounted rate and win loyal customers even for those medicines which are not produced by their brand. 

Baby Care Products Suppliers

 Manufacturers of baby care items, such as diapers, baby food, or baby accessories, can diversify their wholesale business and reach retail buyers directly by launching their D2C/ B2c channel on their enterprise marketplace. Alternatively, they can still use their dealer/wholesale buyers (retail shops) to create a strong network of sub-stores for different locations and cater to B2C  buyers directly.

By adopting the B2B2C ecommerce model, the above-mentioned enterprise businesses can grow their B2B relationships to the next level by offering B2C sales opportunities to their retailer/dealer/distributor network. B2B brands will also get direct access to an established B2C customers base which can further bring many opportunities for strategic growth. 

Challenges of building both B2B and B2C online stores for Your B2B2C Ecommerce Marketplace

While pivoting to business-to-business-to-consumer e commerce model has many benefits it comes with its unique challenges. Here are some of the challenges businesses face when implementing the hybrid business model to grow their business:

Finding a single platform to handle B2B and B2C businesses

Integrating both B2B and B2C functionalities into a single platform can be complex and require careful planning. Catering to unique order flows of B2B and B2C will need seamless synchronization between inventory management, pricing, and order processing for both wholesale and retail customers. 

Creating Unique Buyer Experiences for B2B and B2C Customers

Building distinct user experiences for B2B and B2C buyers can be another challenge as both sets of buyers have different needs and expectations from the parent brand. Designing engaging, seamless and simple buyer journeys for both buyer groups on your enterprise marketplace will need a lot of planning and implementation acumen.

Managing Diverse Product Catalogs

Managing a rich product catalogs for both buyer segments can be a challenge especially if your brands intend to keep some products exclusively for one set of the buyers. For example a pharma and medical equipment provider might have a unique equipment catalog for hospitals which are not needed by B2C buyers on your enterprise marketplace.

Multi Pricing and Discounts

Pricing structure for B2B and B2C customers is very different. B2B customers expect tiered pricing or personalized discounts based on order quantity or long-term agreements. On the other hand, B2C prices need to be competitive yet easy to change quickly based on market trends. Also, B2C discounts are more of a regular phenomenon and brands need to have a strong mechanism to implement various changes in B2C prices on a regular basis. 

Ensuring accurate and dynamic pricing for B2B customers while offering competitive prices for B2C customers on your B2B2C ecommerce platform can be demanding.

Different Payment and Checkout Processes

B2B transactions are more complex than a simple B2C transaction. B2B purchases usually entail partial payments, credit terms, detailed invoicing with multiple taxes etc. All of these make  the B2B checkout complex and calls for personalized checkout processes.

Along with creating a customized B2B checkout flow your B2B2C ecommerce platform will also need to have a  secure and efficient checkout process for B2C customers. Offering multiple payment methods to B2C buyers is equally important for building a strong buyer base. 

Logistics and Fulfillment

B2B orders usually  involve bulk shipments and specialized delivery options, requiring sophisticated logistics management. B2C buyers are impatient and they need fast fulfillment with complete transparency throughout the delivery process. Managing quick B2C deliveries and optimizing delivery costs for thousands of B2C buyers can be one of the biggest challenges of B2B2C ecommerce.

Different Marketing Strategies

B2B and B2C sales require different marketing strategies and communication channels. While personalized mails and offers from sales representatives work best in a B2B scenario, the B2C ecommerce segment of your business will need real-time notifications and multi layered promotions (product level, cart level, category level, location-based etc.) to make a kill. 

Finding a B2B2C ecommerce platform that can handle both B2B and B2B marketing strategies can be an arduous task.

Scalability and Performance

To manage the influx of seasonal B2C traffic and regular high-volume B2B orders your B2B2C marketplace would need a highly scalable and high-performance enterprise ecommerce solutions.

Finding a scalable platform that maintains constant high-performance and is designed for peak load tolerance can be a challenge. 

Security and Data Protection      

With a regular flow of orders from both B2B and B2C clients it becomes paramount for your B2B2C marketplace to maintain high-level of security. You need to find a robust B2B2C ecommerce platform that comes with multi layer security.  

Difficult Integrations   

Both B2B and B2C businesses come with their own set of additional software and tools needed for efficiently running the business. Handling a unique set of integrations for bot  the B2B and B2C segments and keeping the overall system simple can be a massive challenge.  

While implementing B2B2C ecommerce with B2B and B2C online stores on your marketplace can be challenging, powering your brand with an advanced B2B2C ecommerce platform like StoreHippo can do the trick for you.

Why Choose StoreHippo B2B2C ecommerce platform for implementing B2B+B2C Solutions

StoreHippo comes with comprehensive solutions and inbuilt support to build any type of hybrid business model. The feature-rich platform offers a plug-and-play solution along with a decoupled platform that can be tweaked inside out for unique brand requirements.

Here is why StoreHippo is the best choice for powering your B2B2C enterprise and creating unique B2B+ B2C sales channels:

• Powered by next-gen technology and MACH architecture that can handle complex business requirements of B2B2C ecommerce model easily
• Headless architecture that gives the creative freedom to build custom and personalized buyer journeys for B2B and B2C buyers
• Built in support for diverse business models like B2B, B2C, D2C, B2B2C etc. make it easy to combine multiple business models and create disruptive solutions 
• Mobile-first principle offers advanced mobile commerce solutions to engage customers better. You can build your B2B and B2C mobile apps right from your admin dashboard and even turn your stores into PWA in just a few clicks.
• Plug and play multi vendor solutions to manage different sellers, distributors and suppliers on your enterprise marketplace
• Native multi store ecommerce solutions help you set up B2B and B2C stores easily and manage them from a common central admin 
• 300+ built-in enterprise grade features including comprehensive product management, order management, invoicing, tax-engine and more 
• SEO-friendly platform that comes with a gamut of built-in marketing features and tools like blog engine, dynamic marketing pages, discount engine, abandoned cart follow up, unified notifications etc.
• PCI-DSS complaint B2B2C ecommerce platform that offers free SSL and ensures multi level security with audit log and other security tools
• Fully-integrated ecommerce platform that comes with 300+ API endpoints to ensure seamless integrations with best-in-breed marketing, CRM, accounting, analytics and other software and third party providers
• 60+ pre-integrated payment gateways and other digital payment options like digital wallets, UPI etc.
• 30+ pre-integrated shipping channels and built-in delivery boy management solution to handle a fleet of delivery boys of the vendors and distributors on your B2B2C ecommerce marketplace

With its well-rounded platform StoreHippo helps enterprise brands overcome all the technical and operational hurdles of the B2B2C model.

Conclusion

The versatility of the B2B2C ecommerce model allows it to cater to various use cases, making it a viable option for businesses across industries. Whether it's manufacturers looking to adopt a direct-to-consumer approach, retailers venturing into wholesale, or traditional B2B distributors diversifying their revenue streams, the B2B2C model offers the flexibility needed to thrive in today's dynamic market.

Though implementing the business-to-business-to-consumer model might look daunting, with a detailed plan and a powerful B2B2C ecommerce platform like StoreHippo you can easily craft your own unique solutions for growth. By aligning the strengths of the B2B and B2C business models you can drive innovation, tap into new revenue streams, and create an unforgettable customer journey that keeps clients coming back for more.

Ready to set-up your business for disruptive growth? Explore the amazing StoreHippo B2B2C ecommerce platform, start your 14-day free trial now!