The Difference Between B2B & B2C Fashion Marketplaces

Brands looking to uplevel their distribution strategy may be confused about whether a B2B or a B2C fashion marketplace is better for their business. This guide will define both types of platforms and showcase their key benefits. It will also compare their similarities and differences regarding their ability to drive growth and increase revenue.  

‍

Brief Summary

Which Marketplace Model Is Right for Fashion Brands: B2B or B2C? If you’re looking to drive long-term revenue, own your pricing strategy, and build repeat retail relationships, B2B fashion marketplaces offer a clear edge.

• Revenue Impact: B2B channels are often brands' most profitable—more control, fewer discounts, and stronger margins.
• Customer Relationships: Unlike B2C platforms, B2B fosters long-term partnerships with tools for reordering, messaging, and personalized outreach.
• Scalability & Reach: B2B marketplaces provide access to global buyers and enterprise tools to grow alongside your brand.

‍

What is a B2C Fashion Marketplace?

A B2C fashion marketplace is a platform where brands can sell product directly to end consumers. It allows shoppers to browse a large selection of brands at one time and often includes capabilities to filter by occasion, color and price. Some of the most well known marketplaces in this category include Amazon, AliExpress, ASOS and Farfetch.

‍

According to a survey by BCG, B2C marketplaces account for 67% of global e-commerce sales today, a jump from 40% only a decade ago. For brands looking to increase their online presence and revenue from online sales, working with a B2C marketplace could be a path to achieving this.

‍

What is a B2B Fashion Marketplace?

A B2B fashion marketplace is a platform used by brands to sell directly to fashion retailers. Designed specifically for industry professionals, the software on these platforms helps to facilitate interactions, purchases and payments between both parties. 

‍

Capital One Shopping research revealed the worldwide B2B e-commerce market to be worth an estimated $30.42 trillion in 2024, with projections indicating it will grow to $66.89 trillion in 2029. This highlights a growing trend towards digitalization that more and more buyers are adopting.

‍

For brands looking to do business with retail industry power players and/or smaller independent boutiques, joining a B2B fashion marketplace is essential.

‍

Are There Any Similarities Between B2B and B2C Fashion Marketplaces?

Access to New Markets

Both B2B and B2C fashion marketplaces give brands the ability to access new markets and therefore more customers. Instead of making big investments in regions where they are unsure if their product will be successful, a marketplace can be a great way for brands to gauge interest in new locations with little risk.

‍

Analytics

Brands that adopt either kind of fashion marketplace will be taking another step towards the digitization of their wholesale process. By doing so, they’ll be able to gain access to analytics on consumer behaviour and their product, and this data can be incredibly valuable for informing future business decisions. 

‍

Customer Experience 

Today, B2B and B2C marketplaces offer similar experiences for their users. Both have intuitive designs with self-service capabilities and streamlined ordering. Previously, B2B marketplaces may have felt more clunky with time-consuming processes, but modern technology means they now mirror the ease of consumer checkout experiences.

‍

What are the Key Differences Between B2B and B2C Fashion Marketplaces?

Pricing 

One of the biggest differences between B2B and B2C marketplaces is pricing capabilities. Brands listed on a B2C marketplace are available for consumers to shop directly, which means the marketplace may have control over pricing. The brand is subject to the marketplace's sales cycle and may often have products discounted during mandatory promotional events. 

‍

Brands using a B2B fashion marketplace have more control, as they can negotiate unique prices for each individual retailer, with buyers on these kinds of platforms often more open to discussing discounts on larger orders or special offers on certain stock.

‍

Personalization

On a B2C fashion marketplace, there are very few marketing opportunities and merchandising is restricted to the constraints of the main website design. Brands are bound by the confines of the B2C marketplace’s standard product listings, which makes it harder to create an impact, stand out against competitors and drive sales.

‍

Alternatively, B2B marketplaces give brands the ability to create their own digital identity via means such as virtual showrooms to showcase their product with an online store. They also allow brands to create customized linesheets, which can be tailored to specific retailers. This bespoke approach exponentially increases a brand’s chance of securing an order, maximising their potential revenue. 

‍

Repeat Orders 

B2C platforms have no interest in getting customers to buy from one brand specifically again; they are more concerned with increasing their overall revenue. There is no assistance in building up a loyal customer base for your particular brand or incentivizing repeat orders.

‍

On a B2B platform, however, the software is specifically designed to help brands maximize repeat orders, with functionalities for brands to message buyers directly when they are running low on certain sizes or colors and easy reordering options.

‍

Why Is a B2B Marketplace Better For Fashion Brand Growth?

After examining the similarities and differences, it is apparent that several key factors exist which make a B2B marketplace more impactful for driving a brand’s growth.

‍

Scalability

B2B marketplaces are designed to give brands the best chance at driving high-value orders and creating returning revenue streams. They make it easy for brands to add new product lines as their business grows, and their large, ever-growing networks of fashion professionals mean there are endless potential connections to be made across the globe.

‍

Builds Long-Lasting Relationships

While a B2C fashion marketplace will sometimes collaborate on exclusive items with brands, these relationships are bound to the confines of the marketplace.

‍

B2B fashion marketplaces allow brands to grow long-lasting relationships that can develop further outside of the platform. New business opportunities and collaborations, such as in-store pop-ups, are encouraged so a brand can achieve maximum growth. 

‍

More Cost-Effective

Unlike a B2C platform which is restricted to consumer sales, B2B platforms can also facilitate the sale of excess inventory to other businesses, generating additional revenue for brands. Brands on a B2B fashion marketplace will also typically spend less on marketing and operations costs, as platforms help to reduce the manual workload, freeing up brands to focus time and money on other areas of their business.

‍

In Conclusion

While there are benefits to both distribution channels, it's clear that B2B fashion marketplaces offer brands greater opportunities to scale revenue and drive profitable business growth.

‍

In fact, in a recent JOOR survey, when asked to compare the profitability of their wholesale, DTC retail, and DTC e-commerce channels, 52% of brands confirmed that wholesale is their most profitable channel. Not only is it their most profitable, it’s also their largest, with an average of 57% of brands’ business coming from wholesale. This further reinforces the important role of B2B fashion marketplaces and the opportunity they represent for brands.

‍

Interested to see the power of a B2B platform for yourself? Request a demo of JOOR today.

‍