7 B2B2C Examples That Show How Businesses Collaborate to Serve Customers

B2B2C is a business model that combines the features of both B2B and B2C sales models. In this model, two businesses come together to deliver their products or services to end customers via an integrated supply chain. The first business sells its products and services to the end consumer by utilising the services of the second business. The second business in this model offers a specific service or benefit to the first business. This service helps the first business increase its revenue, gain access to more customers or increase operational efficiency.

In this article, we will explore some of the benefits and challenges of the B2B2C model, and look at some real-world examples of successful B2B2C companies.

Benefits and challenges of the B2B2C model

The B2B2C model has several advantages for both businesses and customers, such as:

Broadened market influence: B2B2C enables the first business to tap into larger customer bases with the aid of another established business platform. This synergy translates into more streamlined go-to-market strategies, exponentially amplifying the market reach of the first business.
Varied revenue opportunities: With the B2B2C model, businesses have the opportunity to step out of their comfort zones and explore a myriad of platforms and partnerships. This strategy fosters a mutually beneficial environment, allowing revenue growth and diversification for all involved parties.
Superior customer experience: Often, the second business boasts an impressive market presence and sophisticated customer service framework. By selling products on such a platform, the first business can ensure that their customers receive an enhanced, superior experience.

However, the B2B2C model also comes with some challenges, such as:

Loss of control: The first business may have to compromise on some aspects of their brand identity, pricing strategy or product quality when partnering with another business. The second business may also have some influence over how the products are marketed, distributed or serviced to customers.
Increased competition: The B2B2C model may expose the first business to more competitors in the market, especially if the second business partners with multiple businesses offering similar products or services. The first business may also have to compete with the second business itself if they have overlapping offerings.
Complex relationship management: The B2B2C model requires a high level of trust, communication and coordination between the two businesses. The businesses may have different goals, expectations or cultures that can create conflicts or misunderstandings. The businesses may also have to deal with legal, regulatory or ethical issues that arise from their partnership.

Real-world examples of successful B2B2C companies

To illustrate how the B2B2C model works in practice, here are some examples of companies that have adopted this strategy:

Affirm & Casper: Affirm is a fintech company that offers flexible payment options to customers who buy products from online retailers. Casper is a mattress company that sells its products online and in physical stores. By partnering with Affirm, Casper can offer its customers a convenient way to pay for their mattresses over time, without any hidden fees or interest charges. This helps Casper increase its sales conversion rate, customer loyalty and average order value.
Grocery stores + Instacart: Instacart is an online grocery delivery service that connects customers with personal shoppers who pick up and deliver groceries from local stores. Grocery stores can partner with Instacart to offer their customers an online shopping and home delivery option, without having to invest in their own e-commerce infrastructure or delivery fleet. This helps grocery stores expand their customer base, increase their sales volume and improve their customer satisfaction.
OpenTable and local restaurants: OpenTable is an online reservation service that allows customers to book tables at restaurants across various cities. Restaurants can partner with OpenTable to showcase their menus, availability and reviews to potential customers, and accept reservations online. This helps restaurants attract more customers, reduce no-shows and manage their capacity more efficiently.

B2B2C Examples: How Businesses Collaborate to Serve Customers Better

Business-to-business-to-consumer (B2B2C) is a business model that combines the features of both B2B and B2C sales models. In this model, two businesses come together to deliver their products or services to end customers via an integrated supply chain. The first business sells its products and services to the end consumer by utilising the services of the second business. The second business in this model offers a specific service or benefit to the first business. This service helps the first business increase its revenue, gain access to more customers or increase operational efficiency.

Affirm & Casper: Offering Flexible Payment Options for Mattress Buyers

One example of a successful B2B2C partnership is between Affirm, a fintech company that provides point-of-sale financing, and Casper, a mattress company that sells online and in stores. Affirm allows Casper customers to buy mattresses with monthly instalments, without any hidden fees or interest charges. This way, Casper can offer a more affordable and convenient way for customers to purchase its products, while Affirm can earn revenue from the transaction fees paid by Casper. According to Affirm, merchants that partner with them see an average increase of 85% in order value and 20% in conversion rate.

Grocery Stores + Instacart: Delivering Groceries to Customers’ Doorsteps

Another example of a B2B2C model is between grocery stores and Instacart, an online grocery delivery and pickup service. Instacart partners with over 600 retailers and 45,000 stores across North America to offer customers same-day delivery and pickup of groceries and other essentials. Customers can shop from their favourite stores via the Instacart app or website, and have their orders delivered by Instacart shoppers within hours. Grocery stores benefit from this partnership by expanding their customer base, increasing their sales and reducing their operational costs. Instacart benefits from this partnership by earning commissions from the retailers and fees from the customers.

OpenTable and Local Restaurants: Connecting Diners with Restaurants Online

A third example of a B2B2C model is between OpenTable, an online restaurant reservation platform, and local restaurants. OpenTable connects diners with over 60,000 restaurants worldwide, allowing them to discover new places, book tables, order food and pay bills online. Restaurants benefit from this partnership by attracting more customers, managing their reservations, improving their service quality and increasing their revenue. OpenTable benefits from this partnership by earning fees from the restaurants for each reservation made through its platform.

References:

https://www.infosys.com/about/knowledge-institute/insights/Documents/future-customer-engagement.pdf

https://en.wikipedia.org/wiki/Business-to-business#cite_ref-7

https://archive.org/details/ecommerceformula00plan/page/26

What Is Business to Business to Consumer (B2B2C)? – NetSuite

What is the B2B2C model? Meaning, companies, and examples – LogRocket Blog

(https://in.indeed.com/career-advice/career-development/b2b2c)

https://www.netsuite.com/portal/resource/articles/ecommerce/b2b2c.shtml

https://in.indeed.com/career-advice/career-development/b2b2c