E-commerce is typically associated with selling to individual customers (B2C). The COVID-19 pandemic changed the game, bringing rapid growth to online stores. Today, as the B2C market becomes saturated, more e-commerce brands are looking for new ways to continue growing. One such approach is leveraging the potential of B2B sales (Business to Business), especially in international markets.
What is B2B sales in e-commerce?
B2B sales is a model where e-commerce brands sell their products not directly to individual customers but to other businesses, which then offer these products to the end consumers. In this context, we can even talk about B2B2C sales (Business to Business to Consumer) as products reach retail chains or marketplaces before being sold to the end customers.
A brand owner can therefore combine multiple sales channels. For example, they can sell products in their own physical boutiques, through their online store, or independently on marketplaces (like Amazon, Zalando, eBay, Allegro). They can also establish B2B partnerships with large retail chains (e.g., Sephora, Douglas, Lidl, Rossmann, Hebe) and marketplaces (like Amazon using the Fulfillment by Amazon model), allowing these partners to order larger batches of products and then sell them to the end customers. B2B sales (like B2C) can be conducted either domestically or internationally, in which case it’s referred to as cross-border B2B.
Why it’s worth considering B2B sales in e-commerce?
Expansion opportunity
Through B2B sales, brands can easily enter new markets by operating cross-border. Collaborating with large retailers such as Rossmann or Hebe and marketplaces like Amazon and Zalando opens doors to millions of new customers. This strategy can significantly boost reach and revenue, especially at a time when growth in the B2C channel is becoming increasingly difficult.
Stability and scalability
Many online sellers report impressive growth in B2B sales, often exceeding 100% year-on-year. These are results that are hard to achieve solely through an online store. Additionally, B2B sales offer greater financial stability due to large orders from established business partners.
Challenges in handling B2B e-commerce orders
Difficult demands from retailers and marketplaces
Large retail chains and global marketplaces have strict requirements for order fulfillment. Every order must be perfectly prepared according to specifications, including proper packaging, labeling, and shipping.
Major retail chains don’t have time to repeatedly check orders from suppliers. With such large volumes, everything must run like clockwork.
Here are examples of B2B shipping requirements from retailers:
- Different rules apply to parcel and pallet orders.
- If an order contains a product mix, a “mix” label must be applied to the box.
- Boxes must be labeled with a special customer number or order number so that the retailer can match the order to the correct brand.
- For pallet or multi-box orders, a main box must be selected and labeled as the “lead box” containing all documents, so the retailer can find them without searching through all boxes.
- Boxes must be placed on the pallet with labels facing outward, and the labels must include product details like names, SKU codes, EAN codes, and quantities.
- Only products with specified batch numbers and expiration dates may be included in the order.
- A packing list, delivery note, and invoice must be generated and included.
- For some retailers, an advance notice is required, informing them that a particular order with a specified number of pallets is ready for dispatch – the retailer then confirms a specific time slot for receiving the order.
Varied rules even within the same retail chain
Guidelines for order preparation vary not only between retail chains but also between different locations of the same chain. For example, the standards in Douglas differ significantly from those in Sephora, but even within Douglas, there are different rules in Poland and Germany. This adds another layer of complexity for companies looking to sell in multiple international markets.
Every mistake generates costs
With such strict and varied requirements, errors are easy to make. Even minor deviations from the standards can have serious consequences. Just one mistake, such as omitting a customer number on a box or failing to book the right delivery time with the retailer, can result in the entire order being returned. The merchant not only misses out on payment for the order but also incurs additional costs for reshipping and may face contractual penalties from the retail chain.
This is a critical aspect not to be underestimated. In B2B orders, the scale is vastly different from B2C orders. A typical e-commerce order consists of 3 products on average. Meanwhile, a single B2B order can be equivalent to 1,000 B2C orders. The scale significantly amplifies costs.
Large and small B2B orders
Entering the B2B channel as an e-commerce business, especially when selling to large retailers, often requires starting with very small orders – samples (e.g., 25 SKUs, with one product each). Retailers want to test market reception before placing larger orders.
The challenge is that standard B2B warehouses are typically not equipped to handle small sample orders, while typical fulfillment centers struggle with high volumes and B2B procedures. It can be difficult to find a logistics partner capable of managing both small e-commerce orders and sample shipments, as well as large orders prepared for retail chains.
How to leverage the potential of the B2B channel in e-commerce growth?
The key to effectively managing B2B sales, especially on an international scale, is partnering with an experienced logistics provider. Omnipack is an example of a company that fully understands the needs of both B2C and B2B channels.
As one of the leading fulfillment operators, we have been supporting e-commerce brands since 2016, offering comprehensive logistics services to over 100 online stores. During this time, we have fulfilled over 8 million orders, shipping to over 40 countries across Europe and beyond. Our central European location allows us to deliver packages to Germany within a day (1-4 days to other European countries).
Having invested in B2B processes over the years, we are the ideal partner for e-commerce brands looking to move beyond the traditional B2C model and successfully enter the B2B market, both locally and cross-border.
We ship international B2B orders to many countries across Europe, including Germany, Italy, France, the Netherlands, Poland, and more.
These orders reach major retail chains such as H&M, Douglas, Sephora, Flaconi, Rossmann, Hebe, Lidl, Galeries Lafayette, and marketplaces like Amazon, Zalando, eBay, Allegro, Farfetch, Modivo, and Limango.
At Omnipack, we know the requirements of each retail chain and marketplace, and we have the technology and processes to meet these standards.
B2B order fulfillment at Omnipack – what does it mean in practice?
→ We coordinate the entire B2B order chain – starting with receiving the order in the system, through all stages of fulfillment, and ending with the delivery to the retailer.
→ We pack orders according to your specifications and the requirements of retailers and marketplaces.
→ You don’t have to worry about entering a partnership with a large retail chain or marketplace and not knowing how to meet their stringent requirements – we take care of that for you.
→ You can specify exact expiration dates or batch numbers for shipment to meet long shelf-life product requirements.
→ We can assemble product bundles before shipping.
→ We can arrange transportation and handle notifications in retailers’ systems across Europe.
→ We handle both large and small orders. Thanks to our extensive e-commerce experience, we seamlessly manage small sample orders. At the same time, our well-established B2B processes allow us to ship larger volumes as your business scales.
B2B in e-commerce – where to start?
B2B sales, including cross-border sales, are a powerful tool in the arsenal of any e-commerce business that can drive significant growth and business stability. However, success in this area requires precision, flexibility, and the right logistics support. It’s worth considering entering this field with the help of a professional partner. If you want to take your e-commerce logistics to the next level by launching B2B and international sales, get in touch with us.