Post Link: What’s Your Strategy for Multichannel eCommerce Fulfillment?

What’s Your Strategy for Multichannel eCommerce Fulfillment?

For brands with both B2B and B2C online channels, fulfillment is where the rubber meets theroad when it comes to eCommerce strategy. The needs and expectations of customers acrosseach of these channels is not always the same, making fulfillment a constant challenge.

What’s Different Across eCommerce Channels?

When it comes to fulfillment, the biggest differences between B2B and B2C are often related tothe cost and speed of shipping. In B2C, free shipping is a huge draw. eCommerce strategy firmAccorin has found in its own testing that free shipping promotions typically have higherconversion rates and average cart sizes than offers that do not include free shipping.

Industry studies also back this up. Deloitte’s 2015 Annual Holiday Survey found that 72% ofshoppers intended to take advantage of online free shipping offers, while 55% anticipatedtaking advantage of free returns. Free shipping also far outweighed shipping speed as amotivating factor, with 87% of survey respondents stating that free shipping was a moreimportant selection factor than fast shipping.

It’s also important to note that more than 81% of consumer respondents expected shipping tobe both free and fast––they were not willing to pay extra for faster modes of shipping.

In B2B, things are different. Accorin found that free shipping is less of a motivating factor forB2B firms. Most B2B organizations have negotiated shipping rates and are savvy to the factthat nothing is ever really “free.” They realize that free shipping is actually included in theproduct price. They would rather get the best price possible on the items they are purchasing,and use their own shipping terms to keep costs competitive.

B2B customers are looking primarily for reliability in shipping. Their orders may be placed aspart of a manufacturing or production process, with orders that can be anticipated well inadvance. In addition, longer transit times may also allow the B2B customer to save money onwarehouse space.

In essence, you are dealing with very different customers with separate expectations.Consumers want orders fast and they want them free. For B2B customers, reliability andaccuracy are key, and they understand that they may have to pay for logistics performance andplan ahead to keep costs down.

What This Means for Your eCommerce Fulfillment Strategy

1. Be flexible.

Your approach to fulfillment will need to be flexible, since what works for one channel may notwork for another. Fulfillment outsourcing, also known as third party logistics (3PL) is one optionto consider as you are growing your B2C channel.

For companies with a well-established B2B business, this strategy can allow you to continueproviding the options your B2B customers expect and value through your current fulfillmentstrategy, while at the same time providing the options consumers trust and prefer as you growyour B2C channel.

As the B2C channel matures, bringing fulfillment back in-house may make sense as long as youare able to continue providing service that is as good or better than what your 3PL provider canoffer.

2. Provide information.

B2C customers want products fast and free. If you are able to provide these options, make sureyour eCommerce site prominently displays this information.

B2B customers want information and reliability, so shipping and delivery details should also beprominently displayed. In addition, a separate page where B2B customers can gain insight intoreliability for the shipping options they use is also a good idea.

3. Go with the flow(s).

If you’re dedicated to managing all your eCommerce fulfillment needs in-house, then it makessense to enable multiple flows of traffic within your warehouse. After all, the workflow to pick

small orders such as those typically submitted by consumers, and larger orders from B2Bcustomers, will require different approaches.

Whether you’re manually picking and packing or have a more automated process, you’ll need todesign a workflow that can accommodate all your processes. One solution is segregating yourB2B and B2C orders by time of day or warehouse location.

4. Anticipate change.

Change is a constant. Today’s B2B expectations are changing quickly. While reliability may bea bigger issue for B2B buyers now, the push towards “free and fast” in their consumer lives arealready raising the bar in B2B.

In B2C, meanwhile, the shift will be from fast to faster. Companies need to anticipate today howthey will fulfill future orders as customers’ demands change and begin building a fulfillmentstrategy that will enable them to meet these demands not just now, but two, five or ten yearsdown the road.

Getting the most from your eCommerce fulfillment strategy, especially across multiple channels,is challenging, but also incredibly rewarding for the companies that get it right. What strategiesis your company using to fulfill eCommerce orders across multiple lines of business? We’d loveto hear about it in the comments.Post originally located at: https://www.handshake.com/blog/ecommerce-fulfillment/

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