What is the difference between B2B and B2C?

B2B companies sell to businesses, usually with higher prices, several decision-makers and longer sales cycles. B2C companies sell to individuals, usually in higher volumes at lower prices.

What is the difference between B2C and D2C?

B2C covers any sale to consumers, including through retailers. D2C means the brand sells directly to consumers through its own channels.

Is B2B or B2C better for a startup?

Neither is better in general. B2B can reach revenue with fewer customers. B2C can grow faster once a cheap channel works. Choose the model that fits your customer and problem.

B2B vs B2C vs D2C: Business Models Explained

B2B (business-to-business) companies sell to other businesses. B2C (business-to-consumer) companies sell to individual people. D2C, or DTC (direct-to-consumer), is a type of B2C where the brand sells straight to consumers through its own channels instead of through retailers or other intermediaries.

By Javier Alonso, Founder & CEO. Updated 2026-10-25.

B2B: business-to-business

The customer is an organisation. Examples include accounting software, industrial equipment and recruitment services.

Fewer customers, higher prices. A single contract can be worth thousands or millions.
Several decision-makers. The user, the budget holder and IT or legal may all need to agree.
Longer sales cycles. Weeks to months, often with demos, trials and procurement.
Relationships matter. Retention and expansion within accounts drive growth.

B2C: business-to-consumer

The customer is an individual buying for themselves. Examples include streaming services, mobile games and clothing.

Many customers, lower prices. Growth depends on volume.
One decision-maker, often deciding quickly and emotionally.
Brand and distribution matter, because attention is expensive.
Metrics to watch: CAC, retention, average order value and DAU/MAU.

D2C: direct-to-consumer

D2C brands make or source their own products and sell them through their own website, app or stores, rather than through retailers or marketplaces. This keeps more margin and gives the brand direct customer data and relationships. In exchange, the brand pays for all its own customer acquisition, fulfilment and service, which is why rising advertising costs hit D2C companies hard.

Hybrids: B2B2C and marketplaces

B2B2C: you sell to a business that delivers your product to its own consumers, such as a payments provider inside an online shop, or a platform that a university offers to its students.
Marketplaces: connect two sides, such as buyers and sellers, and take a fee. They can be B2C, B2B or consumer-to-consumer.

What changes for a startup

Your model shapes your go-to-market. B2B startups usually start with founder-led sales, a narrow ICP and a handful of design partners. B2C and D2C startups need a channel that reaches many people cheaply, such as content, community or referrals, because individual sales calls do not scale at low prices.

For your role

Service providers: Most service providers sell B2B. Knowing whether your client sells B2B or B2C changes the marketing advice you give them.
Investors: Check that the metrics a founder reports match the model: account expansion and sales cycle for B2B, acquisition cost and retention for B2C.

Common questions

What is the difference between B2B and B2C?: B2B companies sell to businesses, usually with higher prices, several decision-makers and longer sales cycles. B2C companies sell to individuals, usually in higher volumes at lower prices.
What is the difference between B2C and D2C?: B2C covers any sale to consumers, including through retailers. D2C means the brand sells directly to consumers through its own channels.
Is B2B or B2C better for a startup?: Neither is better in general. B2B can reach revenue with fewer customers. B2C can grow faster once a cheap channel works. Choose the model that fits your customer and problem.