B2B vs. B2C vs. D2C business models: What’s the difference?

If you’re just getting started in the business world, you’ve probably heard people throw around terms like B2B, B2C, or D2C.

These are three of the most common ways businesses are structured, and each one describes who a company sells to and how it builds that relationship. Some models involve selling to other companies, others focus on individual consumers, and some cut out the person in the middle entirely.

In this article, we are going to walk through what B2B, B2C, and D2C are with examples, strengths and limitations, and how each is used today.

• B2B, B2C, and D2C – a quick comparison
• What is B2B?
• What is B2C?
• What is D2C?
• The key differences between B2B, B2C, and D2C
• The risks that come with each model
• Choosing the right model
• Summing it up

B2B, B2C, and D2C are three common ways businesses sell their products or services. The main difference between these models is who the business is selling to and how that relationship is managed.

• B2B: Business to business
• B2C: Business to consumer
• D2C: Direct to consumer

Here’s a quick comparison to share the differences side by side.

B2B, or business-to-business, is when one company sells products or services directly to another company, rather than to individual consumers.

These transactions are usually larger in value and involve longer sales cycles, since decisions often require input from multiple stakeholders. Compared with a quick consumer purchase, B2B sales are more complex and require greater consideration. In fact, the average buying cycle in APAC for B2B businesses is 13.2 months .

Businesses typically evaluate B2B providers based on quality, how well the product or service fits their specific needs, and the potential return on investment.

When it comes to decision-making, research shows that 81% of buyers select a preferred vendor before speaking with sales, which highlights how much trust and brand reputation matter in the B2B space.

• Expert Wealth provides financial advisory services to businesses, helping them manage investments.
• Xero sells accounting software subscriptions to small businesses, accountants, and bookkeepers to manage their finances.
• BizCover sells business insurance to small and medium-sized businesses.

• Higher margins from specialised products and services.
• Long-term contracts provide stable, predictable revenue.
• Strong customer relationships increase loyalty and retention.
• The ability to scale rapidly through large enterprise deals.

Salesforce Sales Cloud supports these by helping businesses manage all their deals in one place, forecast revenue with built-in AI, and track progress through real-time pipelines.

• Sales cycles are often long and complex.
• High cost for customer acquisition and ongoing customer service.
• Reliance on fewer, larger accounts can create financial risk.
• Implementation processes may be resource-intensive.

Salesforce Sales Cloud can help you organise and manage your leads, while Agentforce helps you manage your customer support by handling routine enquiries and giving your team more time to focus on complex requests.

B2C, or business-to-consumer, is when a company sells products or services directly to individual customers rather than to other businesses.

These transactions are usually smaller in value and move at a much faster pace, since consumers tend to make decisions quickly. Compared with B2B sales, B2C is more emotional in nature and often influenced by convenience, price, and lifestyle.

It’s important to note that, in B2C, customer expectations are shifting. We found that 73% of customers feel brands treat them as unique individuals, yet only 49% believe companies use their data in a beneficial way. This shows how important personalisation and secure data management are for B2C success.

• MECCA reaches consumers with beauty and skincare products sold through its retail stores and e-commerce site.
• White Fox offers fashion items online, targeting consumers looking for affordable and on-trend clothing.
• Pacific Smiles Dental provides dental care services to patients across its clinic network.

• B2C businesses can reach large markets and sell high volumes.
• Sales cycles are shorter, so purchases happen quickly.
• Strong brands can build loyalty and connect with millions of customers.
• It is easier for new businesses to enter, compared with B2B.

Salesforce Marketing Cloud supports these advantages by helping businesses deliver personalised campaigns at scale to build stronger brand loyalty and drive quick sales.

• Competition is more intense, and consumers are highly price-sensitive.
• Margins are usually thinner compared with B2B.
• Marketing and customer acquisition can be expensive.
• Customers expect fast service and instant support.

Salesforce Service Cloud with Agentforce helps manage these challenges by giving service teams the tools they need to resolve customer queries quickly and at scale.

D2C, or direct-to-consumer, is a modern twist on the traditional B2C model where producers sell directly to customers, skipping wholesalers and retailers.

This way of selling has grown quickly in recent years, with many new brands starting out online-only. Instead of going through retailers or distributors, they sell directly to customers on their own websites, build awareness through social media, and use subscriptions to keep customers.

In D2C, transactions tend to move quickly, and buying decisions are often driven by convenience, lifestyle, price, and a personal connection to the brand.

The global direct-to-consumer market was valued at 196.12 billion in 2023 , and is projected to reach 571.34 billion by 2031, growing annually by 14.3% during that period.

Casper disrupted the mattress industry by selling directly online, offering home delivery with a free returns period.

• L’Oréal runs hundreds of branded websites to sell beauty products straight to consumers.
• Koala is an Australian furniture company that sells mattresses, sofas, and home goods online, delivering directly to customers.

• D2C brands can achieve higher margins by removing the intermediaries from the sales process.
• They maintain full control over branding, pricing, and the customer experience.
• Direct access to customer data allows businesses to personalise offerings and build loyalty.
• Products can be launched and iterated quickly to meet customer preferences.

Salesforce Commerce Cloud supports this by giving businesses the tools to manage digital storefronts and personalise shopping journeys.

• Customer acquisition is often expensive, relying on paid ads or influencer marketing.
• Logistics and fulfilment can be difficult to manage alone.
• New D2C businesses face the risk of low brand recognition at launch.

Salesforce Marketing Cloud helps reduce acquisition costs by supporting better targeting and personalised campaigns.

While B2B, B2C, and D2C are different models in practice, businesses can often use more than one.

For example, Nike sells wholesale to retailers (B2B), runs its own stores for everyday shoppers (B2C), and also sells directly online through its website and app (D2C).

Many modern businesses use a mix of these approaches depending on their target markets and growth plans. Here’s a side-by-side comparison of the key differences:

The model you choose will shape how you market, serve customers, and grow your business. The right choice for you heavily depends on what you’re offering, your ICP, and how you want to run your sales, marketing and support.

With each model also comes risks, and you’ll need to decide which risk you’re willing to take:

• In B2B, the risk is relying on a small number of large clients, which means losing one contract can have a big impact on your revenue.
• In B2C, the risk is competing in crowded markets where consumer trends change quickly and sales are unpredictable.
• In D2C, the risk is that it can be hard for people to discover your business, since you are responsible for building awareness and attracting customers without the support of retailers or distributors.

None of these risks makes one model better than the other, but they are trade-offs that can shape whether your new business succeeds.

The best model for your business depends on what you sell, the industry you’re in, and how much control you want over sales and delivery. Here’s a quick checklist to help you pick the right model for your business:

• Who are your customers? Businesses, consumers, or both?
• What are you selling? High-value products or fast-moving goods?
• How will you reach people? Through partners, retail, or direct channels?
• What resources do you have? What resources do you have in regards to budget, staff, and systems for marketing and support?
• How much control do you want? Full ownership of sales and fulfilment, or shared with partners?
• Can technology help? Can you utilise tools like CRM and AI to make hybrid models easier to manage?

Start with the model that fits your current product and resources best, but keep an open mind. Blending models over time can often create more stability and new revenue streams.

B2B, B2C, and D2C each describe different ways of selling, but the goal is always the same: reaching customers and building long-lasting relationships.

No single model is perfect, and many businesses blend approaches as they grow. The key is staying flexible, adapting as markets change, and making decisions based on your product, resources, and customers.

Looking ahead, data and personalisation are useful no matter the model you choose. Salesforce products like Sales Cloud, Marketing Cloud, Service Cloud, Agentforce, and Commerce Cloud give you all the tools to manage sales, marketing, service, and e-commerce in one connected platform.