Is Walmart B2B or B2C In 2023? Primarily a B2C Company With Some B2B Qualities
When analyzing Walmart‘s business model, the majority of the company‘s sales and operations are focused on serving individual consumers. However, Walmart does exhibit some B2B qualities as well by selling bulk items useful for other businesses. Taking all factors into account, Walmart ultimately aligns closer to a B2C (business-to-consumer) company, though has some hybrid aspects of a B2B (business-to-business) model.
To understand where Walmart fits in the B2B vs. B2C debate, let‘s first examine some key traits of both business models.
Distinguishing Features of B2B vs B2C Companies
The core difference between B2B and B2C companies lies in who their primary customers are:
B2B Companies:
- Sell products or services to other businesses
- Customers are other companies
B2C Companies:
- Sell directly to individual consumers
- Customers are the general public
Beyond the customer base, there are some typical structural differences:
B2B | B2C |
---|---|
Complex sales process | Simpler sales process |
Bulk/wholesale purchases | Individual/retail purchases |
Needs-driven buying | Marketing-driven buying |
Multiple decision makers | Individual decision making |
Let‘s look at some examples to illustrate the key characteristics of both models:
Examples of Major B2B Companies
- Cisco – Sells IT infrastructure and networking equipment to large enterprises
- Boeing – Manufactures commercial jets and defense products for airlines, governments and military clients
- McKesson – Distributes pharmaceuticals and medical supplies to hospitals, pharmacies, clinics
- Siemens – Provides automation systems, industrial equipment and energy products for corporate clients
These companies all cater to organizational buyers, with complex sales cycles requiring extensive research and needs analysis. Products are sold business-to-business in bulk quantities, not individual units.
Examples of Major B2C Companies
- Amazon – Leading ecommerce retailer focused on individual shoppers
- Procter & Gamble – Global CPG/FMCG company selling household brands to consumers
- Costco – Warehouse club selling bulk groceries, electronics, and more to individual members
- Starbucks – Global coffeehouse chain marketing primarily to consumers
These companies drive sales through consumer marketing and merchandising directly to the general public. Purchases are made on an individual basis rather than bulk corporate orders.
Where Does Walmart Fit In? Exhibits Some Hybrid Qualities
Walmart displays attributes of both models:
B2B Characteristics
- Sells bulk items useful for businesses – restaurants, hotels, etc.
- An estimated 15-20% of Walmart‘s sales are to other companies
B2C Characteristics
- Core focus is individual consumers and households
- Majority of sales (approx. 80-85%) are still direct to consumers
So while Walmart does have some B2B aspects, its primary approach aligns more with a B2C company. Let‘s analyze the evidence on both sides of the debate in more detail:
Arguments for Walmart as a B2B Company
It‘s true that Walmart sells many products useful for businesses like:
- Cleaning supplies
- Disposable gloves
- Kitchen equipment
- Office furniture
- Bulk paper goods
Restaurants, hotels and other services buy supplies from Walmart regularly.
Recent estimates suggest 15-20% of Walmart‘s annual sales come from business customers, which amounts to tens of billions in B2B revenue.
Arguments for Walmart as a B2C Company
However, the vast majority of Walmart‘s sales still come directly from individual household consumers:
- 80-85% of annual sales are to consumers, not other businesses
- Most products cater to family and individual needs
- Store layouts are designed for efficient consumer shopping
Walmart‘s merchandising, pricing and promotions also focus on marketing directly to consumers:
B2C Merchandising Strategies | Examples |
---|---|
Private label branding | Great Value, Equate, Parent‘s Choice |
EDLP pricing | Rollback specials, price matching |
Loyalty program | Walmart+ membership |
Impulse buys | Checkout aisles stocked with candy, magazines |
Very few aspects of the in-store experience are optimized for bulk business purchases.
The product assortment, marketing, and overall shopping experience make it clear Walmart sees individual consumers as its primary customer. This firmly establishes Walmart as more of a B2C company.
Conclusion: Walmart Primarily B2C with Some Hybrid Qualities
Analyzing all the evidence, Walmart is predominantly a B2C company:
- Individual consumers drive around 80-85% of total sales
- Merchandising, marketing and operations cater to household shoppers
- Core business remains focused on serving the general public
However, Walmart does exhibit some B2B characteristics:
- Sells bulk items useful for businesses
- Generates billions in B2B sales
This hybrid model allows Walmart to tap into some of the B2B market while remaining firmly rooted in a B2C approach. Understanding these nuances allows suppliers to optimize their relationship and product selection with Walmart.
As an experienced ecommerce seller, I‘ve found the best strategy is focusing your brand, packaging and promotions on Walmart‘s legions of individual shoppers, while offering bulk-friendly options to capture some incremental B2B revenue. This balanced approach helps maximize sales through Walmart‘s unique hybrid of B2C and B2B ecommerce.