Definition

B2B2C (Business-to-Business-to-Consumer) describes a business model where two companies collaborate to deliver a product or service to the end consumer. This partnership allows each company to leverage the strengths of the other to reach a wider audience or offer a more comprehensive solution. It involves a three-way interaction:

• Manufacturer/Supplier (B2B): Creates the product or provides the service.
• Platform/Retailer (B2B): Acts as a middleman, selling the product or service to the consumer.
• Consumer (B2C): Purchases the final product or service.

Examples:

• Retail: A clothing manufacturer supplies garments to a large online retailer like Amazon (B2B). Amazon then sells those clothes directly to consumers (B2C). The manufacturer benefits from Amazon’s vast customer base and marketing reach, while Amazon offers a wider selection to its customers.
• Digital Commerce (eCommerce): A cloud storage provider offers its services to a website hosting company (B2B). The hosting company then integrates the storage solution into its platform, allowing website owners to easily add storage for their customers (B2C). This creates a valuable addition for the hosting company and a seamless experience for website owners.

Types

There isn’t a single “type” of B2B2C model, but rather variations depending on the specific collaboration. Here are some common structures:

Manufacturer-Retailer:
Traditional supply chain where manufacturers sell products to retailers, who then sell them to consumers.

Platform-to-Merchant:
Online marketplaces like eBay or Etsy connect sellers directly with consumers, taking a commission on each sale.

Service Provider-Reseller:
A company provides a service to another business, who then bundles it with their own offering and sells it to consumers (e.g., internet service provider partnering with a cable TV company).

Benefits

Increased Market Reach:
Businesses can access new customer segments through their partner’s established audience.

Enhanced Customer Experience:
By combining expertise, partners can offer a more comprehensive or convenient solution for consumers.

Improved Efficiency:
Streamlined processes and data sharing can lead to faster transactions and reduced costs.

Innovation:
Collaboration can foster new ideas and product development through shared resources and expertise.

For instance, a B2B2C partnership between a fitness equipment manufacturer and a mobile app developer could result in a more engaging workout experience for consumers, with the app offering personalized training plans that utilize the manufacturer’s equipment. This benefits all parties involved by creating a valuable proposition for consumers, increasing sales for both companies, and potentially leading to further innovation in the fitness industry.