What is B2B2C, how does it work, and is it right for you?
The business-to-business-to-consumer (B2B2C) model isn’t as straightforward as business-to-business (B2B) or business-to-consumer (B2C). If you’re leading either type of business, you may find that neither model fully meets your needs or your customers’ expectations. You might even be exploring alternative models to scale your business but don’t know if B2B2C is the right choice.
In this guide:
- What is B2B2C?
- B2B vs. B2C vs. B2B2C
- How B2B2C works
- Why choose B2B2C?
- Pros and cons of B2B2C
- When to consider B2B2C
- Examples of B2B2C in action
- B2B2C solutions and next steps
What is B2B2C?
B2B2C stands for business-to-business-to-consumer and is a business model where two companies work together to deliver complementary goods or services to the same end customer.
In this model:
- One business (for example, a manufacturer) produces the product or service.
- Another business (such as a retailer, service provider, or marketplace) sells, delivers, or facilitates the customer transaction.
How does this benefit manufacturers?
Manufacturers gain access to retailers’ established customer bases, marketing investments, and sales infrastructure. This partnership enables them to reach new markets at scale while focusing on product development.
Everyday examples:
- Mondelez, the maker of Chips Ahoy, partners with retailers like Walmart to bring snacks to consumers.
- Instacart works with grocery chains to deliver food to customers’ doors.
The B2B2C model creates value for all parties involved: Manufacturers expand their reach, retailers or intermediaries gain more products to offer, and customers get better service and variety.
B2B vs. B2C vs. B2B2C.
To determine if B2B2C is right for your business, you need to understand how it differs from B2B and B2C models.
B2B — business to business.
B2B businesses sell products or services to other businesses.
- Example: A coffee manufacturer sells exclusively to grocery stores or office supply companies.
- Key role in B2B2C: Manufacturers (B2B businesses) provide the products that intermediaries sell to consumers.
B2C — business to consumer.
B2C businesses sell directly to consumers.
- Example: Nike and Apple manufacture and sell their products to customers directly through stores or online platforms.
B2B2C — business to business to consumer.
B2B2C combines aspects of both B2B and B2C.
- Example: A manufacturer partners with a retailer, marketplace, or service provider to deliver products or services to the end customer.
- Both brands are visible, unlike in channel partnerships where products may be white-labeled.
What about channel partnerships?
In channel partnerships, manufacturers sell products that are rebranded under a store’s private label. The key difference is transparency: In B2B2C, consumers know both the manufacturer and the retailer or intermediary.
How B2B2C works.
The B2B2C model can take different forms depending on the businesses involved:
1. B2B2C retail.
Retailers sell products from a manufacturer to customers using their own sales and fulfillment channels.
- Example: Amazon stocks products from third-party sellers and handles customer transactions, shipping, and returns.
2. B2B2C services.
A business provides services (like delivery) on behalf of another business.
- Example: Instacart partners with grocery stores to offer order fulfillment and delivery services.
3. B2B2C financing.
Payment providers facilitate purchases by offering flexible financing to customers.
- Example: Katapult offers “buy now, pay later” financing, paying the retailer upfront and collecting installments from the customer.
4. B2B2C digital platforms.
Digital marketplaces host products or software created by third-party businesses.
- Example: Apple’s App Store provides a platform for developers to sell software to iOS users.
Why choose B2B2C?
Benefits for manufacturers.
- Expand into new markets without significant investment in infrastructure or marketing.
- Access valuable customer data to improve products and target audiences effectively.
- Focus on product development while intermediaries handle logistics and customer service.
Benefits for distributors or intermediaries.
- Sell to consumers without the costs of designing or manufacturing products.
- Offer a wide variety of goods and services to attract more customers.
Benefits for consumers.
- Gain access to diverse products and brands in one place.
- Compare prices and choose convenient delivery options.
- Enjoy added services like financing, delivery, and customer support.
Pros and cons of B2B2C.
When to consider B2B2C.
High level of digital maturity.
B2B2C ecommerce requires robust capabilities to support seamless operations, customer experiences, and cost efficiency.
If you’re a B2B business, modern ecommerce tools make it easier to sell to retailers directly, replacing traditional channels like EDI or manual sales processes.
Non-competitive relationships.
B2B2C works best when businesses complement each other. Manufacturers can focus on production while retailers handle marketing, sales, and operations.
Examples of B2B2C in action.
1. Amazon — B2B2C retail.
Amazon sells products from manufacturers, handling everything from order processing to fulfillment.
2. Instacart — B2B2C services.
Instacart partners with grocery stores to offer end-to-end shopping and delivery.
3. Apple App Store — B2B2C digital platforms.
Apple’s App Store provides a platform for developers to sell apps to millions of users worldwide.
4. Katapult — B2B2C financing.
Katapult integrates with ecommerce sites to offer installment payments, expanding customer purchasing power.
5. Kayak — B2B2C services.
Kayak allows customers to compare and book flights, hotels, and car rentals through one platform, benefiting both travel providers and consumers.
B2B2C solutions and next steps.
When B2B2C partnerships are streamlined, all parties win: Manufacturers scale their reach, intermediaries increase sales, and consumers enjoy better shopping experiences.
If you’re ready to explore the B2B2C model, start by assessing whether your ecommerce platform can support:
- Seamless integration with intermediaries and marketplaces.
- Inventory tracking and real-time order management.
- Customer data analytics to improve personalization and experiences.
Adobe Commerce provides everything you need to build and scale a B2B2C ecommerce business. From inventory management to omnichannel support, Adobe Commerce integrates seamlessly with platforms like Amazon through the Amazon Sales Channel extension.
Take a free product tour to discover how Adobe Commerce can help grow your business through B2B2C partnerships.
