Business To Consumer - B To C

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DEFINITION of 'Business To Consumer - B To C'

Business or transactions conducted directly between a company and consumers who are the end-users of its products or services. Business to consumer as a business model differs significantly from the business to business model, which refers to commerce between two or more businesses.

Also known as B2C.

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BREAKING DOWN 'Business To Consumer - B To C'

While most companies that sell directly to consumers can be referred to as B2C companies, the term became immensely popular during the dotcom boom of the late 1990s, when it was used mainly to refer to online retailers, as well as other companies that sold products and services to consumers through the Internet. Although numerous business to consumer companies fell victim to the subsequent dotcom bust as investor interest in the sector dwindled and venture capital funding dried up, B2C leaders such as Amazon.com and Priceline.com survived the shakeout and went on to rank among the most successful companies in the world.

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