The difference between multi-channel and D2C fulfilment – and why multi-channel retailers need more than standard 3PL

Knowing who your customers are and how to sell to them is fundamental to success. And one of the first key distinctions to make is whether you are sending products to consumers, retailers, or marketplace/wholesale partners.

Why is this so important? Selling across multiple channels (D2C, B2B wholesale and marketplaces) opens up a whole different world of considerations, from the way you market yourself to the products you choose to stock.

But did you know that one of the most important differences to prepare for is the fulfilment process?

What is multi-channel (D2C and B2B) fulfilment?

Multi-channel fulfilment is when you supply products both directly to consumers and to other businesses or retail partners, rather than only selling direct to the customer.

It might not seem drastically different, but it is. Multi-channel fulfilment comes with a whole host of specific needs that standard D2C fulfilment and standard 3PL setups often can’t handle.

So, exactly how is multi-channel fulfilment different from D2C?

When it comes to the differences between multi-channel vs D2C fulfilment, you need to think about the needs of who is making the purchase and how the order needs to be processed, shipped, and documented.

Different customer types have different needs when it comes to:

• The price or how much they can spend
• The reason why they want to make a purchase
• The volume of items they will buy
• How often they will make a purchase
• How orders must be packed, labelled and delivered (especially for retailers)
• Whether they require pallet shipping, ASN, EDI, barcoding, or retailer-specific compliance

When supplying retailers or wholesalers, customers will be looking for the best possible price. After all, they need to make a profit off their purchase, so they’ll be thinking about the margin they can get off it.

Gone will be impulse purchases or emotive decisions. They are basing their purchases on cold hard facts – Will this product sell? Will it make me money? How much shall I invest in it?

Wholesale and marketplace orders are typically high volume, repeat purchases, planned well in advance, and some buyers may wish to negotiate prices and agree contracts for the year ahead.

This differs hugely from D2C orders. These are often much more reliant on your marketing tactics, which can cause your orders to fluctuate frequently. Orders will be smaller in value but often in higher numbers. The sales cycle is much shorter, and fulfilment is simpler, with standard courier shipping and fewer compliance requirements.

Take a look at what else you need to know about multi-channel fulfilment in more detail below…

Order volumes

One of the biggest differences between fulfilling multi-channel orders and D2C orders is the volume you will be dealing with.

When fulfilling D2C, it is likely that each order will be just for a few items. In fact, for many eCommerce stores, an order of even 10 items or more is considered to be big.

When it comes to multi-channel fulfilment, bulk wholesale orders are expected as the norm. Depending on the size and needs of the retailer, you could be sending hundreds or thousands of items in a single order. To cater to this, you will require far more stock storage space than if you were fulfilling only D2C orders.

This can also open the door to numerous complications if your fulfilment process isn’t geared up to cope. Multiple SKUs, pallets, and mixed cases increase complexity and risk. Unfortunately, mistakes can cost you valuable business long-term, so efficiency is more important than ever.

Shipping methods

Due to the typically larger volume of multi-channel orders, finding a shipping option often isn’t as straightforward as it is for D2C orders.

Large volumes often mean heavier, bulkier and palletised shipments that aren’t suited to standard parcel delivery. Instead, it’s likely you will need to ship orders via freight.

Different retailers may also have strict delivery windows, packaging, barcoding, carton sizes, pallet height restrictions and ASN requirements.

Then, there are the huge differences in costs. If an order from one retail partner is twice as big as another, the cost for delivery isn’t going to be the same. So, a blanket shipping price probably won’t work.

Returns

Reverse logistics can become a lot more complicated for multi-channel suppliers.

D2C returns are common but can be dealt with easily when handled correctly. Customers use a returns label, send the product back, and await a refund or exchange.

When it comes to B2B or retail orders, returns are usually linked to incorrect quantities, labelling errors, damaged pallets, incorrect ASNs, or compliance failures. If a large number of items are being returned, you need to track volumes accurately to know how much stock is returning.

If the return is large volume, you may require freight shipping to get it back to your warehouse. All items will then need to be inspected, correctly replaced or removed from your inventory and a refund or exchange arranged. Retailers may also expect detailed communication, automated notifications, and corrective action reporting.

EDI compliance

For eCommerce businesses that supply retailers or marketplaces, it’s common for your orders to have to be EDI compliant.

If you aren’t sure what EDI is, it stands for Electronic Data Interchange. It’s a form of electronic invoicing, shipment notifications, purchase orders, and labelling that many big retailers use to make the process faster, more accurate and more efficient.

There are certain EDI standards that retailers expect. So, if you are new to fulfilling multi-channel retail orders, it’s important to ensure you are meeting all the criteria requirements of the retailer you are supplying. If you don’t, there can sometimes be financial penalties, delays, and even rejected deliveries.

A standard 3PL won’t always support complex retailer requirements. A specialist multi-channel 3PL can help you out here, as they have the experience and systems to ensure that every retail order you fulfil is fully EDI compliant.

Scale with a fulfilment partner built for multi-channel

If you’re selling across D2C, marketplaces, and wholesale/retail partners, your fulfilment needs go far beyond standard 3PL.

Chat to us about how outsourced fulfilment can protect your margins, compliance standards and customer relationships.