Unraveling the B2B, B2C and C2B Puzzle in Auction Market

May 23, 2017 Facebook Twitter LinkedIn Google+ Uncategorized

Unraveling the B2B, B2C and C2B Puzzle in auction market

Unraveling the B2B, B2C and C2B puzzle in auction market is worth the effort.The B2B, B2C and C2B are a puzzle in auction market that needs to be solved. Have you come across those before and wonder what they could mean. Those terms are often used in e-commerce and unless you’ve read about it before it is hard to tell the meaning from the face value. Yet they’re worth knowing since they are used in every day transaction in today’s market. In this post I’m going to explain what each stand for so just in case you hear it mentioned in business transaction you won’t be puzzled.


So what the hell is B2B? B2B stands for Business to Business.  So when B2B is mentioned in e-commerce, it refers to transaction between two businesses, companies doing business with each other.  It involves business selling products or services to another business, basically big businesses to smaller businesses. For example, Manufacturers sell to distributors and wholesalers to retailers. In this type of transaction, the aim of both is to make profit.


B2C represents business to consumer.  This is a type of transaction in which businesses sell their products and services to the general public. In most cases, this usually involves the retailer and the consumers since retailers are the channel through which companies reach consumers.  The retailer who is the last channel of distribution sells to the consumer, the end user of the products.  Retailer to consumer is most common in off line transaction where the consumer may not connect directly with the company due to the nature of their demand as they buy in little quantity.

However, e-commerce has made it possible for consumers to connect directly with companies. Consumers can now buy directly from companies through their website irrespective of the quantity of products they want. But there are still exceptions. Alibaba.com for example does not sell to consumers. You’ve got to buy in bulk which translates that transaction has to take the normal process of company to distributors – to retailers – then to consumers.


C2B is the consumer to business type of transaction. This time it is the consumer who brings his project to the market online. Consumer posts his project with a list of his requirement and sets his budget.  Interested companies review the requirements. They then bid on the project. They usually bid an amount lower than the consumer’s budget.  Having reviewed the bids, the consumer chooses the company that will execute his project and thus sell to them. This is also known as a reverse auction.

Freelance companies are typical examples of C2B auction.  In case you don’t know any of the freelance sites here are some of them.

C2B also comes into play when a consumer creates value and businesses adopts and use the value.  It could be a business idea about product development or marketing strategy. If the business finds value in the idea created by the individual they will likely buy it and this could lead to monetary reward.

Let’s look at another scenario.  An individual creates a website or a blog that is rich in key words. Ranks the site and fills it with lots of content. The site attracts huge traffic and now is a potential income maker. The individual approaches a business and say, “I’ve got a business that will interest you. It’s a website that ranks page one on Google. It has lots of contents and gets 3000 page views per day.” The company may by the website from the individual consumer. The image below illustrates this kind of business model.