B2C, or business-to-consumer, refers to commerce and transactions where businesses sell products or services directly to individual consumers.
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Last Updated: January 26, 2026
New business owners need to answer some questions: what are they selling, and who is their target patron? Is the business a B2C? What does that mean? A B2C, by definition, is a “business-to-consumer” business — this means a B2C sells its products and services to consumers in the general public instead of to other businesses or the government.
The B2C definition encompasses much more than a description of who buys the company’s wares. This guide takes a look at key characteristics of operating a B2C.
As noted above, a B2C is a business that sells to consumers. B2Cs can come in many forms, including:
The purely B2C business owner does not sell their products and services to other businesses or government entities that will ultimately provide a product or service to the public. The B2C owner makes money by dealing with the public directly.
If an entrepreneur seeks to sell to as many consumers as possible, their B2C can sell to other businesses and government entities as well. It’s best to speak to legal, financial, and business professionals in the industry to help evaluate how many communities a business should serve with its services.
Doing business with consumers in the general public can have many benefits that entrepreneurs might want to consider.
Developing products or services for a business to sell to consumers can be a less expensive and quicker process. Many consumers in the general public don’t have to worry about meeting industry standards and regulations the way businesses and governments do, so the products the business sells to them don’t have to be tailored to specific industry needs. If a business owner doesn’t have to worry about their products meeting industry standards for business or government use, they don’t have to spend as much time on product development.
A big part of successfully running any business is proper marketing. To properly market a business, entrepreneurs need to know what their target patron wants or need, and they need an effective way to reach them.
Once again, much of the general public doesn’t have concerns about meeting industry standards and regulations, so an entrepreneur’s marketing doesn’t have to be as complex or heavily researched as for businesses and governments. Also, selling to the general public doesn’t require an entrepreneur to get approval from specific businesses and government agencies before closing a deal. Through online ads, flyers, and billboards, entrepreneurs can easily reach all those who make the final decision on general consumer purchases.
B2C business is often quicker and easier, but that can mean it’s less stable and less lucrative. By comparison, selling to other businesses or even the government brings customers with greater purchasing power and more consistent purchases. Because of that, a B2C business owner will probably need to sell more (and more frequently) to keep a steady stream of income for their business.
B2C businesses focus on selling directly to the general public. It might take less effort to research and develop products and services for the general consumer, but the general consumer might have less money and less regular need for what a B2C sells.
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Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
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