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L3: Types of Market

Revision and practice on the different types of market — B2B, B2C and C2C.

Key vocabulary: B2B, B2C, C2C, Market Share, Competitive Behaviour

Key Concepts

B2B vs B2C

How businesses market their products depends heavily on whether they're selling to other businesses (B2B) or to individual consumers (B2C) — the buying process, decision-making and marketing approach differ significantly.

  • Decision-making: B2B purchases are usually made by teams; B2C purchases are often made by individuals, sometimes on impulse.
  • Relationship: B2B marketing focuses on building long-term relationships. B2C marketing often focuses on emotional appeal, brand image and convenience.
  • Volume and value: B2B transactions tend to be higher in value but lower in volume. B2C transactions are typically lower in value but much higher in volume.
  • Marketing channels: B2B relies heavily on trade events, direct sales, LinkedIn and industry publications. B2C uses mass media, social media, retail and e-commerce.

The Growth of C2C

Consumer-to-consumer (C2C) markets have grown rapidly thanks to digital platforms connecting individual buyers and sellers directly, creating entirely new markets and changing how people buy and sell second-hand goods.

  • Online platforms: eBay, Vinted, Depop and Facebook Marketplace allow anyone to sell to anyone.
  • The sharing economy: platforms like Airbnb let consumers rent assets (like a spare room) directly to other consumers.
  • Sustainability: growing environmental awareness has boosted C2C markets, as consumers buy and sell second-hand clothing, furniture and electronics rather than buying new.
  • Impact on B2C businesses: C2C platforms create competition for traditional retailers — a customer considering a new item might instead buy a second-hand version at a fraction of the price.

How Market Conditions Influence Each Market Type

Competition, competitive behaviour (e.g. lowering price) and market growth affect B2B, B2C and C2C businesses in different ways. A growing market, for example, might lead a B2B supplier to expand its product range for business clients, while in a C2C market it might simply mean more individual sellers joining a platform, increasing choice for buyers without any single business needing to invest in expansion at all.

Real-World Case Studies

Vinted — C2C reshaping the UK fashion market

Vinted now has more than 17 million UK users and has grown to become the UK's third-largest fashion retailer by customer numbers, behind only Primark and Next — ahead of established names like Zara, H&M, ASOS and Shein. User numbers grew around 23% year-on-year, and the UK second-hand fashion market as a whole is now worth more than £7 billion, with nearly one in four UK fashion transactions now involving resale. This is a clear example of a C2C market (individuals selling directly to other individuals via Vinted's platform) growing large enough to become genuine competition for traditional B2C retailers.

Source: verified via search, September 2026 — BusinessGreen and Barclays research on Vinted's UK growth and the UK resale market.

Amazon Business — B2B at global scale

Amazon Business, Amazon's dedicated B2B marketplace, reached $60 billion in annualised gross sales in mid-2026 and now serves more than 11 million business organisations worldwide, including the majority of the Fortune 100. In just the first half of 2026 alone, 1.8 million new business organisations joined the platform. This shows classic B2B characteristics in action at scale: bulk/repeat purchasing by organisations rather than individual impulse buys, and a marketing approach built around reaching procurement teams rather than consumers.

Source: verified via search, September 2026 — Novadata coverage of Amazon Business's mid-2026 results.

Sort It: B2B, B2C or C2C?

Tap an example below, then tap the type of market it belongs to.

B2B

B2C

C2C

0 of 6 sorted

Quick Knowledge Check

Short, snappy recall questions — tap to reveal the answer.

What does B2B stand for? (1 mark)

Business-to-business.

Give one way B2B purchasing differs from B2C purchasing. (1 mark)

Any one of: B2B decisions are usually made by teams (B2C often by individuals); B2B transactions are higher value/lower volume (B2C the reverse); B2B focuses on long-term relationships (B2C often on emotional appeal/convenience).

Give an example of a C2C platform. (1 mark)

Any one of: eBay, Vinted, Depop, Facebook Marketplace, Airbnb.

Key Term Flashcards

0 known · 0 still learning

Tap a card to flip it, then rate yourself.

B2B
Business-to-business — one business sells to another. Higher value, lower volume, decisions made by teams.
B2C
Business-to-consumer — a business sells directly to individual customers. Lower value, higher volume.
C2C
Consumer-to-consumer — individuals sell directly to other individuals, usually via a digital platform.
Sharing Economy
A model where consumers rent out assets (like a spare room or a car) directly to other consumers, e.g. Airbnb.

A*/A Stretch

Examiner's eye

When comparing markets, don't just state "B2B is different from B2C" — always explain the specific implication for marketing decisions, e.g. "because B2B purchases are made by teams rather than individuals, marketing needs to persuade several decision-makers with different priorities, so trade shows and direct sales are often more effective than mass advertising."

Common misconception

C2C platforms aren't simply "unregulated" versions of B2C retail — most (like Vinted and eBay) still take a cut of transactions or charge fees, meaning the platform itself is a business earning B2C-style revenue from facilitating C2C trade between its users.

Try This With AI

Before using this: AI tools can get facts or mark scheme details wrong, and quality varies by tool. Always check anything factual against your notes or ask your teacher.

Give me three short business examples and ask me to classify each as B2B, B2C or C2C, and to justify my answer using at least one relevant feature (decision-making, volume/value, or marketing channels). Mark my justifications, not just my classification.