What are the key differences between B2B and B2C order fulfilment? This is a question that many people ask themselves when deciding on an eCommerce fulfilment strategy. The answer to this question can vary depending on your type of business, but there are some general differences. We will discuss 5 key differences in this blog post so that you can make more informed decisions about your eCommerce fulfilment strategy. But first, let us understand what B2B and B2C are.
B2B (business-to-business) - Typically, companies that sell to other businesses or organizations. They are also known as wholesale or distribution sales.
B2C (business-to-consumer) - Selling products directly to consumers through retail outlets like department stores, supermarkets, boutiques, and online retailers.
Order fulfilment- The processes from which an order is effected, from the time it leaves a customer's input to the moment they have received their product.
So, what is the difference between B2B and B2C order fulfilment?
Quantities
One of the biggest differences between B2B and B2C order fulfilment is quantities. B2B companies make big orders at one time, whereas B2C usually does not want large shipments sent out because there are no guarantees on how many units will be sold. Since the B2C deal with customers directly, they prefer to have the deliveries come in smaller quantities more frequently.
Product prices
The product price of B2B and B2C companies is also different. The prices of the products that a business sells will not be as high as those sold to individual consumers. B2B businesses order in bulk than B2C, and they will often get better deals at wholesale rates.
Shipping methods
Another key difference between B-to-B and B-to-C fulfilment lies with shipping methods. Since the B2B orders are bulkier, they often take much longer to process. Thus, the company will have a more complicated shipping method that includes many different stages of packing and transport. On the other hand, B-to-C orders are generally smaller items with faster processing times.
Costs
As aforementioned, B2B order fulfilment is more complicated compared to B-to-C fulfilment. This is because companies often need more warehouse space to store their products, which means they have higher costs. However, B-to-C orders are usually smaller, so it makes sense for them not to spend so much on storage space.
Quality Control
Another difference between B-to-B order fulfilment versus B-to-C order fulfilment is quality control. Although both businesses will seek out high-quality products, there are still differences in this area. For instance, business owners can't simply return defective goods or ask for a refund if they don't like something about an item as individual customers do. Rather than receiving refunds from distributors, stores who receive such requests must pay fees associated with returns and the cost of the product.
In Summary
It is important to understand the difference between B2B and B2C order fulfilment. This will, in turn, enable you as a business owner to make the best financial decision for your business and also come up with the best plan for your order fulfilment process.
