B2B2C

What is B2B2C?

B2B2C (Business-to-Business-to-Consumer) is a business model where a company sells products or services to another business, which in turn sells to the final consumer with both businesses working together to serve the end customer.

It combines elements of both B2B (Business-to-Business) and B2C (Business-to-Consumer) models.

Simple Example

Let’s say:

A tech company develops a health app.

It partners with a hospital chain that offers the app to its patients.

Here, the tech company is B1, the hospital is B2, and the patients are the final consumers (C). This is a classic B2B2C model.

How B2B2C Works?

• Business 1 (B1): The original product or service provider (e.g., a software or product manufacturer).
• Business 2 (B2): The partner or distributor that interfaces with the end customer.
• Consumer (C): The final user of the product or service.

The key is that Business 1 retains some access to the end user, often for branding, data, or future engagement.

Examples of B2B2C

1. Fintech Platforms

• A fintech company partners with banks or NBFCs.
• The bank sells the fintech’s services to customers via its platform.
• Example: Razorpay providing payment services on e-commerce platforms.

2. Food Delivery

• A cloud kitchen uses Swiggy or Zomato.
• The platform brings the food to the end customer.
• Here, the kitchen (B1), the platform (B2), and the user (C).

3. Healthtech Startups

• A startup builds a diagnostic tool.
• It is integrated into hospital systems, which patients then use.

Benefits of B2B2C Model

1. Faster Market Reach: Leverages the customer base of Business 2.
2. Brand Visibility: Still allows brand exposure to the end customer.
3. Shared Responsibilities: Sales, marketing, and support can be split.
4. Better Customer Insights: B1 often gets usage data from B2.

Challenges of B2B2C

1. Brand Confusion: Who owns the customer relationship?
2. Revenue Sharing: Profit margins are split between B1 and B2.
3. Customer Support: Responsibility may be unclear if issues arise.