A type of commerce where businesses sell products or services directly to individual consumers for personal use.
What is B2C (Business-to-Consumer)?
B2C, or business-to-consumer, describes transactions in which a company sells goods or services directly to the end user, rather than to another business. This model covers a wide range of industries, from retail and e-commerce stores to restaurants, travel services, subscription platforms, and mobile apps. Common examples include an online clothing store selling directly to shoppers, a coffee shop serving walk-in customers, or a streaming service providing entertainment to subscribers.
B2C sales typically involve shorter buying cycles, lower transaction values compared to B2B, and emotional or convenience-driven purchasing decisions. Marketing in B2C focuses heavily on brand image, customer experience, and direct outreach through advertising, social media, influencer marketing, and promotional campaigns.
For U.S. companies owned by non-U.S. residents, the B2C model offers the opportunity to reach a vast consumer market but requires careful attention to compliance and operational logistics. This can include U.S. sales tax registration in states where you meet economic nexus thresholds, consumer protection laws, return policies, and payment processing compliance. Many non-U.S. founders use e-commerce platforms like Shopify, Amazon, or Etsy to operate B2C businesses remotely, benefiting from built-in payment processing and marketing tools.
While B2C can scale quickly and reach a global audience, it often involves higher competition and requires ongoing investment in marketing, customer service, and user experience to retain and grow a customer base.
