B2B Model VS B2C Model
If you're filling orders for a single end client or a retail business, the B2B and B2C concepts will look very similar to you. There may not appear to be much of a distinction between the two notions. Many significant distinctions, however, do not appear to be visible on the surface. Business to business order fulfilment is referred to as B2B, whereas business to consumer order fulfilment is referred to as B2C. Both categories of order deliveries are highly distinct and necessitate various operations and methods. Every delivery made by your company, whether to a single consumer or an entire company, must reflect your brand identity; otherwise, you risk losing potential customers.
You might be able to navigate the key differences between supply chain logistic, fulfilment services, inventory management, and warehouse management for B2B and B2C orders and their respective complexities if you work with a suitable third-party logistics provider that perfectly aligns with your business ventures.
B2R is another name for B2B. The products are delivered straight to a business or a retail store in this case. The typical order volume is substantially higher than in B2C, ensuring that the business receiving the orders has adequate inventory to sell. Businesses arrange orders in advance and in quantity so that they don't have to deal with them on a regular basis.
One of the most important aspects of B2B order fulfilment is accuracy. Businesses will require SKU codes, product limits, tax rules, parcel labels, certain invoicing systems, and barcodes, among other things. Because the order volume is significantly higher than B2C, delivery takes a lot longer and costs a lot more money. Because you will need to transport the orders all over the world, you will need to become more familiar with carrier information such as air freight and sea freight, as well as various international trade barriers such as tariffs, taxes, and subsidies.
If you're going to use a third-party logistics provider for your B2B order fulfilment, make sure that the third-party logistics company you choose can deliver consistently and quickly. Because the firms engage with so many other businesses, they expect these order fulfillments to be done with the utmost accuracy, efficiency, and cost-effectiveness. Third-party logistics is also important for meeting orders on time. Mismanagement and delays by third-party logistics suppliers can damage an organization's reputation, resulting in penalties and costs that they must cover.
B2C orders are delivered directly to the end customers, as the name implies. Because each order is placed by a single consumer, the average order value of B2c orders is substantially lower than that of B2Borders. B2C order fulfilment is also more easier than B2B because there are less standards and requirements to follow when fulfilling a single order. These orders always have a pre-determined price that appears and displays the same for each consumer. Due to changes in demand or pricing, the only exception is specific promotional or seasonal events. Because internet transactions are so modern and accessible these days, the payment process for B2C orders is likewise quite efficient.
With B2C order fulfilment, you typically fulfil a single purchase from a single user. Because the buyers are purchasing straight from your website, there isn't much of a barrier to entry for this type of order. Furthermore, in this day and age, everyone appears to be extremely comfortable with online purchasing, and many customers prefer it to shopping in stores.
If you choose a third-party logistics provider to fulfil your B2C orders, they will ensure that your orders are delivered in good condition to the appropriate customer at the appropriate location. Some third-party logistics companies also manage product refunds and returns.
B2B Vs B2C
Every order fulfilment process is divided into three stages:
There are significant differences between B2B and B2C order fulfilment at each of these stages. Let's have a look at it in a nutshell:
i. The cost of the product
The pricing for B2B orders is determined by the end-requirements user's and demands. However, cost varies depending on the number of recurrent orders, order amount, contract length, and payment terms. A B2C order, on the other hand, is much simpler and does not include as much intricacy as B2B orders. The corporation sets the rate for these orders in advance, and there is rarely any change.
ii. Every customer generates revenue
B2B orders often comprise a huge volume of orders and a significant volume of raw materials, whereas B2C order fulfilments typically involve a smaller volume of goods such as electronic items or personal appliances. As a result,
B2B transactions can be as large as a million dollars and still be recurring, but B2C buys are often in the hundreds of dollars and are one-time purchases.
iii. Assistance with sales
A sales coordinator or account manager is frequently present to assist in the exchange of goods for B2B order fulfilment. This provides a great deal of assistance and support in the B2B order fulfilment process, and more people are taking part in it. In B2C order fulfilment, on the other hand, there is no need for additional sales help because the orders are placed directly by the end customers through an e-commerce business site.
i. The process of selling/buying
B2B order fulfilments take longer than B2C order fulfilments since they must go through department approval, request for quotations, negotiation, and other steps. Customers in B2C orders, on the other hand, can shop around other websites or place an order right away. This takes a lot less time than fulfilling B2B orders.
ii. The size of the order
B2B shipments are typically comprised of big quantities of products acquired in fewer orders. The retailer will sell these items directly through their physical or online store. As a result, the merchant will only place an order if he needs to resupply his fulfilment inventory centre. B2C purchases, on the other hand, are made by one person and are typically made in smaller quantities. All of these purchases are made in one transaction.
B2B payments are typically made through traditional means such as cash on delivery, credit, or purchase order within the agreed-upon time frame. Payment is performed promptly via debit card, credit card, cash, or check in B2C orders.
3. POST PURCHASE
i. Order fulfilment and shipping
Because B2B purchases are higher in number, shipping them takes longer, necessitates more sophisticated equipment handling, costs more money, and requires skilled unloading and loading of product pallets. B2C orders, on the other hand, are inexpensive because the goods are little and often come with free shipping. As a result, a single order can be dispatched in a matter of days.
ii. Customer service
It is critical that you establish proper personal ties with shops who are interested in selling your product. B2B contracts are frequently associated with big volumes, periodic shipments, and personal relationships. This contract is primarily a long-term negotiation that necessitates ongoing monitoring and follow-up. These connections should not be confused with the customer satisfaction needed to fulfil B2C orders. Customer happiness encompasses customer service, marketing, accurate product display, on-time delivery, and proper order fulfilment, all of which contribute to the ultimate customer experience.
Whether dealing with B2B or B2C order fulfilment, every company should have a system in place to manage returns. The B2C return process is easy and uncomplicated. If customers are dissatisfied with the goods and return it, B2C orders have direct return procedures that include a full refund. If the returned item is in good condition and includes all of its tags, the purchaser will receive a prompt refund within a few days of returning it. B2B refunds and returns, on the other hand, are quite complicated.
Because they contain a significant number of items and order size, the contract to which they are bonded, and specific obligations that must be discussed, the reverse logistic process becomes far too complicated. All of these factors must be addressed before a return process in B2B order fulfilment can be completed.
You may choose B2B order fulfilment or B2C order fulfilment, or perhaps both, depending on the type of business you run. Identifying the differences between them can be tough and time-consuming, but now that we've gone through each of their differentiators, you'll be better prepared to deal with them and make the best decision for your company.