The B2C Warehouse, or Business-to-customer warehouse, is a storage facility where products are stored before being delivered to end customers. B2C warehouses mainly deal with B2C brands such as FMCG and clothing brands.
Warehousing plays an important role in storing products securely and safely before distribution. There are two main types of warehousing processes: B2B and B2C warehouses. Traditionally, B2B warehouses were quite popular. They handle bulk and heavy loads and ship to business customers. But the e-commerce business started to grow dramatically after 2020. Hence, B2C warehouses became popular. They handle high volumes of small orders and deliver directly to the customer’s doorstep.
What is B2C Warehouse?
Whenever an e-commerce business grows, it needs to store its products in a warehouse. A B2C warehouse is a specially designed facility that stores these businesses’ products. Whenever a customer orders a product online, the B2C warehouse receives the order at OMS (Order Management Software).
The system verifies product availability and storage location. Then, warehouse staff pick up the ordered product, package it, and hand it to the shipper. The shipper’s job is to deliver the product directly to the customer’s doorstep.
Business-to-customer warehouses are usually equipped with advanced technology, such as WMS, OMS, and TMS, to track inventories and make the space more efficient so that the staff can better utilize it.
Again, the B2C warehouse facility integrates with e-commerce platforms to ensure a seamless flow of orders.
Difference Between B2B & B2C Warehouse Service
1. Warehousing
B2B warehouses handle bulk orders and deliver them to other businesses.
But if we talk about B2C warehousing, it handles many small orders and delivers directly to customers.
2. Pricing
The B2B warehousing price depends on various factors, such as the quantity stored by the business customer, the cost required for procuring products, payment terms, and more. B2B warehousing costs are negotiable as they are stored and delivered in bulk quantity.
However, B2C storage warehouse prices are fixed as they store various SQUs in less quantity. B2C logistics will be expensive because of single-product delivery.
3. Storage And Inventory Management
The B2B shipments are stored in pallets or cartoons. The staff pick the B2B products in bulk, do it through packaging and deliver it to another business.
But in B2C, the staff usually keeps the orders on shelves for easy picking. Individual orders are picked, packaged, and then shipped to the customers.
4. Order Processing
B2B orders are processed in bulk. The warehouse staff picks orders at the pallet or case level, and Product Customization is minimal in B2B order processing.
In B2C, each order is unique and specified for a single customer. Order processing is done here quickly, and orders are delivered to the customer’s doorstep either the same day or the next day.
5. Shipping And Delivery
B2B shipments are expensive and require a lot of time to reach the business customer. The orders are quite large and heavy. Shipping requires either FTL or PTL transportation.
However, if we talk about a B2C warehouse company, the orders are small and lightweight. Free shipping or same-day delivery are standard in B2C purchases.
6. Returns
Returns are not common in B2B brands. Again, if the business customer wishes to return, the process is complicated.
Returns are quite common in the B2C process. If the customer does not like the ordered product, he requests a return on the e-commerce site. The delivery boy picks up the ordered product and brings it to the B2C warehouse. The 3PL company staff inspects the product and keeps it on the shelf again if it is in good condition. The e-commerce company processes the refund instantly.
How B2C Warehousing Works?
Here is a list of step-by-step working processes of B2C warehousing.
1. Receives Inventory
The B2C warehouse receives Inventory from the e-commerce business. The staff thoroughly verifies the products’ quality and enters into the warehouse management system software.
2. Stores Inventory
The staff stores the qualitative products in designated locations, such as shelves, bins, or racks, which allows them to pick them up easily.
3. Order Placement
The customer places the order on the e-commerce website. The order details are automatically sent to the B2C warehouse via integration.
4. Order Picking And Packaging
The staff picks up the rendered product from the shelf and goes through the packaging, which they do properly so that the product will not be damaged during transit.
Some B2C warehouses are equipped with advanced technology, such as robots. The robots pick up the ordered product from the shelf and transport it to the packaging-designated location.
5. Shipping And Delivery
The packed product is handed to the shipping company. The customer will receive a tracking number. They can track the order through the tracking number. Customers will get the product within 1-3 business days.
6. Return Process
If the customer does not like the product, he places a return request. The staff picks up the product, brings it back to the warehouse, and thoroughly inspects it.
Warehouse staff restock or repair products based on their condition. The return process must be simple. Complicated returns process lead to a bad brand image.
Challenges in B2C warehouse storage
There are a few challenges in B2C warehouse storage. Let’s discuss them:
- B2C warehouses handle a large number of products. So, space optimization and inventory management can become a challenge for small and medium B2C Companies.
- B2C warehousing companies should do order fulfillment faster to enhance customer satisfaction. However, picking the right item, packing it, and delivering it to the customer’s doorstep at the right time can be a challenge for most B2C warehouses.
- B2C warehouses often deal with high return rates. Hence these warehouses require extra space for inspection and restocking.
Final Words
In today’s fast-moving e-commerce world, B2C businesses need to earn the trust of their customers. Apart from good product quality, the other factors like customized packaging, fast delivery, and easy returns also help build a trustworthy brand. Modern B2C warehouses have advance technology. They pack products as per customer needs and deliver them the same day or the next day. These warehouses differ from B2B warehouses in various ways, i.e., shipping, delivery, order processing, and more.
AAJ Supply Chain Management
