• Profit Margin – The nature of B2B sales is generally far more prominent than most B2C sales. B2B sales often are in bulk with small items with perhaps scheduled re-orders or other cases like contractors the sale is always going to be significant. In addition, the market potential for B2B feeds into this profit margin well. Something such as grapes going B2C at a farmers’ market is limited in that it targets consumers who want to eat the grapes or perhaps use them for a recipe. However, grapes going B2B have various options like selling in bulk to vintners, grocery stores, companies that make grape jelly, you name it.
• Location of Sales – A large majority of B2B commerce is done on the web. This is a good thing as it is far easier to manage an online presence than to maintain something like a storefront. The location for your selling also benefits the audience you sell to. It is more convenient for them to shop online rather than require physical effort to purchase a product. The ease of a good online website and the smoothness of the transaction go a long way for getting sales.
• Security – No part of B2B is easy, but once you secure some contracts or ongoing deals, there’s good stability to be had from that. B2C is scary in that you could have your products go from flying off the shelves to forgotten quicker than you may realize. Any stability in the business world is something to be desired.
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• Competition – This con applies to both B2B and B2C, but in a scarier way. If you aren’t already a big name in your respective market, it is going to be extremely difficult to secure any contracts, deals, or even just one-time purchases. Even if you manage to secure one deal, you run the risk of your business flopping if you rely on just that to stay afloat. It is also harder to compete in marketing against more prominent names as they are already out there, so it is relatively easy to stay out there. Still, you must work on both getting out there and maintaining whatever position you hold. Other problems with the competition are the monopoly many places have. Big names can survive simply undercutting your price to whatever consumer while you might not be able to. You must be very careful when entering markets and avoid being shut out.