What is D2C? Exploring D2C, and the difference between D2C, B2C, & B2B…

Breathtaking design for home living.

Nam aliquet ante porta, gravida elit interdum, luctus porta sapien justo, at fringilla felis suscipit vestibulum.

Breathtaking design for home living.

What is D2C? Exploring D2C, and the difference between D2C, B2C, & B2B…

Nam aliquet ante porta, gravida elit interdum, luctus porta sapien justo, at fringilla felis suscipit vestibulum.

Breathtaking design for home living.

The 3PL that delivers on time, every time

Nam aliquet ante porta, gravida elit interdum, luctus porta sapien justo, at fringilla felis suscipit vestibulum.

We’re not just another order fulfilment company. We’re the industry leader that delivers the highest quality B2B and B2C services to supercharge your business. If you’re looking to scale your business with world-class services, we’re here for you

What is D2C?

D2C is an abbreviation for the online eCommerce business model ‘Direct to Consumer’ whereby the business sells their products directly to the customer. Sales are typically generated through an online store.

Upon first glance, D2C seems like it is the same as B2C, but there are some differences between the two.

Let’s dive into the difference between D2C, B2C, and B2B

What is the difference between D2C, B2C, and B2B?

As previously explored, the D2C ecommerce business model is the process whereby the customer makes a purchase directly from the eCommerce business. The order is then picked, packed and shipped (fulfilled) in-house.

B2C however, is an abbreviation for Business to Consumer. It follows a similar process as the D2C business model, but B2C fulfilment relies on the help of third party companies for different areas of their supply chain, such as the order fulfilment process.

B2B on the other hand, is an abbreviation for ‘Business to Business’, and follows a process whereby stock is given to a retailer from the other business for the retailer to sell directly to customers in their store or online store front.

Examples of B2B include;

ASOS – An online example of B2B. They have their own clothing line, but they also sell clothes from a variety of other brands such as Nike, Adidas, New look, and many more.

Morrisons – much like other grocery retailers, they have their own line, but they also sell products on behalf of other businesses in their stores.

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

What are the benefits of D2C?

As explored, the D2C model allows customers to purchase directly from the online business, and their order will be fulfilled in-house without the use of third party companies, such as a 3PL company.

Entrepreneurs usually opt for this model because there is less risk and investment involved in the process, and there are some other advantages too. However, after a certain point, some entrepreneurs may opt to outsource their operations, but we will discuss this further on.

For now, lets discuss the benefits of using the D2C model…

More control

During the B2B process, brands can sometimes lose control over how their products are displayed, and if you are a very brand-image orientated brand, this can pose some issues, especially if your products are being sold through a retailers online store. You lose control over the images and quality, the models used, pricing, etc.

Not only this, but your D2C marketing strategy may not align with the retailers selling strategy, which can be frustrating.

B2B can also become costly for smaller brands, and as a result of this your profits may decrease.

Better Brand Loyalty

One of the most important things for any brand, regardless of their business model, is customer and brand loyalty. Without customers, you won’t generate sales.

When customers purchase goods that are sold on your behalf through a retailer, there is a disconnect between the customer and your brand. In particularly over-saturated markets, it can be hard to maintain a high level of customer loyalty and retention because customers aren’t seeing your brand to its full extent- the story, the benefits, the journey, etc. Customers enjoy when they can see the personality behind the brand.

With D2C commerce, it is also easier to track your customers, knowing what works and what doesn’t, allowing you to tailor their customer experience.

Customer Data

Thanks to the digital nature of eCommerce, tracking customers and having access to useful data has never been easier. You gain access to a ton of useful information, such as;

  • Addresses – knowing where majority of your customers are making purchases from can help you make informed decisions regarding shipping.
  • Contact Details– this can be useful for email marketing, such as emails informing customers of sales, or to send them personalised discount codes
  • Cookies and other tracking tools – allows you to learn more about your customers behaviours so you can tailor the customer experience

More flexibility

D2C brands have full control over every aspect of their business, meaning D2C brands can sell on any platform they’d like without needing to worry about limitations caused as a result of using the B2B model.

D2C brands can easily implement omnichannel solutions, allowing them to sell on as many channels, platforms, and market places as they would like.

For more information on omnichannel, click the button below

What are the challenges of D2C?

Much like anything, there are some challenges when it comes to D2C, which we will explore now…

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

Competition

You will always find that there is competition, regardless of the industry you are in or regardless of your business model.

With D2C, you will obviously be in competition with other D2C brands, with some being more established than yours. This means that they will have more resources than you, which puts them at an advantage, and of course some will have a larger customer base than you. However, just because other brands are more established than you, that doesn’t mean you should avoid D2C altogether. It’s all about what you can offer customers that is different from your competitors, and what value they gain from shopping with you

A lot to manage

With B2C and B2B brands, they have third party companies that they can rely on, meaning their plate isn’t as full since they have support elsewhere. With D2C however, this is not the case since you will need to manage every aspect of your supply chain by yourself. For smaller scale D2C brands, this can be challenging but not as challenging as it would be if you are a larger scale D2C brand.

So, after a certain point, you may consider switching your D2C business model to a B2C or B2B business model, since these can add a competitive edge to your brand.

D2C Order fulfilment

As mentioned, fulfilment refers to the process whereby orders are picked, packed and shipped to the end customer. One of the biggest challenges for many D2C brands is the order fulfilment side of things. Without a proper strategy in place, you may find yourself making costly errors. Its great if your brand quickly grows, but a rapid increase in demand can be your biggest downfall without the right strategies in place, which is why some brands end up partnering with fulfilment companies since they are experts when it comes to the fulfilment process and strategy.

Giving your D2C brand a competitive edge; exploring your fulfilment options…

With so much competition out there, you may find that you are struggling to stand out amongst the crowd, which can be very disheartening if you have great products.

Outsourcing your fulfilment may be the solution you need to help your D2C brand thrive. Let’s explore some common reasons for outsourcing your order fulfilment to a 3PL company.

Outsourcing; why use a 3PL?

Unsure of why you should outsource your fulfilment? Think of any pain points you have with in-house fulfilment.

What issues and complications do you frequently run into? What is preventing you from reaching your business goals?

As a 3PL company, here are the common pain points we here from clients looking to outsource their fulfilment;

  • Can’t get their orders out on time, slow operations overall
  • Limited network connections
  • Don’t have enough money to grow and scale their business,
  • Don’t have enough time to focus on other areas of their business, such as sales, marketing, and product development
  • Poor inventory management
  • Struggling to handle returns
  • Struggling to handle demand, seasonal peaks, etc.
  • Limited space available
  • High costs on storage, shipping, and packaging
  • Poor customer satisfaction overall
  • Don’t have access to proper software or technology, manual processes simply won’t cut it anymore in a technology led world, and it minimizes the risk of human error
  • Can’t enter the global market, too expensive
  • Struggling to manage orders across multiple platforms

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

Homeware; Exploring the growing market…

What is D2C?

D2C is an abbreviation for the online eCommerce business model ‘Direct to Consumer’ whereby the business sells their products directly to the customer. Sales are typically generated through an online store.

Upon first glance, D2C seems like it is the same as B2C, but there are some differences between the two.

Let’s dive into the difference between D2C, B2C, and B2B

Homeware; Exploring the growing market…

What is the difference between D2C, B2C, and B2B?

As previously explored, the D2C ecommerce business model is the process whereby the customer makes a purchase directly from the eCommerce business. The order is then picked, packed and shipped (fulfilled) in-house.

B2C however, is an abbreviation for Business to Consumer. It follows a similar process as the D2C business model, but B2C fulfilment relies on the help of third party companies for different areas of their supply chain, such as the order fulfilment process.

B2B on the other hand, is an abbreviation for ‘Business to Business’, and follows a process whereby stock is given to a retailer from the other business for the retailer to sell directly to customers in their store or online store front.

Examples of B2B include;

ASOS – An online example of B2B. They have their own clothing line, but they also sell clothes from a variety of other brands such as Nike, Adidas, New look, and many more.

Morrisons – much like other grocery retailers, they have their own line, but they also sell products on behalf of other businesses in their stores.

Homeware; Exploring the growing market…

What are the benefits of D2C?

As explored, the D2C model allows customers to purchase directly from the online business, and their order will be fulfilled in-house without the use of third party companies, such as a 3PL company.

Entrepreneurs usually opt for this model because there is less risk and investment involved in the process, and there are some other advantages too. However, after a certain point, some entrepreneurs may opt to outsource their operations, but we will discuss this further on.

For now, lets discuss the benefits of using the D2C model…

More control

During the B2B process, brands can sometimes lose control over how their products are displayed, and if you are a very brand-image orientated brand, this can pose some issues, especially if your products are being sold through a retailers online store. You lose control over the images and quality, the models used, pricing, etc.

Not only this, but your D2C marketing strategy may not align with the retailers selling strategy, which can be frustrating.

B2B can also become costly for smaller brands, and as a result of this your profits may decrease.

Better Brand Loyalty

One of the most important things for any brand, regardless of their business model, is customer and brand loyalty. Without customers, you won’t generate sales.

When customers purchase goods that are sold on your behalf through a retailer, there is a disconnect between the customer and your brand. In particularly over-saturated markets, it can be hard to maintain a high level of customer loyalty and retention because customers aren’t seeing your brand to its full extent- the story, the benefits, the journey, etc. Customers enjoy when they can see the personality behind the brand.

With D2C commerce, it is also easier to track your customers, knowing what works and what doesn’t, allowing you to tailor their customer experience.

Customer Data

Thanks to the digital nature of eCommerce, tracking customers and having access to useful data has never been easier. You gain access to a ton of useful information, such as;

  • Addresses – knowing where majority of your customers are making purchases from can help you make informed decisions regarding shipping.
  • Contact Details– this can be useful for email marketing, such as emails informing customers of sales, or to send them personalised discount codes
  • Cookies and other tracking tools – allows you to learn more about your customers behaviours so you can tailor the customer experience

More flexibility

D2C brands have full control over every aspect of their business, meaning D2C brands can sell on any platform they’d like without needing to worry about limitations caused as a result of using the B2B model.

D2C brands can easily implement omnichannel solutions, allowing them to sell on as many channels, platforms, and market places as they would like.

For more information on omnichannel, click the button below

Homeware; Exploring the growing market…

What are the challenges of D2C?

Much like anything, there are some challenges when it comes to D2C, which we will explore now…

Competition

You will always find that there is competition, regardless of the industry you are in or regardless of your business model.

With D2C, you will obviously be in competition with other D2C brands, with some being more established than yours. This means that they will have more resources than you, which puts them at an advantage, and of course some will have a larger customer base than you. However, just because other brands are more established than you, that doesn’t mean you should avoid D2C altogether. It’s all about what you can offer customers that is different from your competitors, and what value they gain from shopping with you

A lot to manage

With B2C and B2B brands, they have third party companies that they can rely on, meaning their plate isn’t as full since they have support elsewhere. With D2C however, this is not the case since you will need to manage every aspect of your supply chain by yourself. For smaller scale D2C brands, this can be challenging but not as challenging as it would be if you are a larger scale D2C brand.

So, after a certain point, you may consider switching your D2C business model to a B2C or B2B business model, since these can add a competitive edge to your brand.

D2C Order fulfilment

As mentioned, fulfilment refers to the process whereby orders are picked, packed and shipped to the end customer. One of the biggest challenges for many D2C brands is the order fulfilment side of things. Without a proper strategy in place, you may find yourself making costly errors. Its great if your brand quickly grows, but a rapid increase in demand can be your biggest downfall without the right strategies in place, which is why some brands end up partnering with fulfilment companies since they are experts when it comes to the fulfilment process and strategy.

Homeware; Exploring the growing market…

Giving your brand a competitive edge; exploring your fulfilment options…

With so much competition out there, you may find that you are struggling to stand out amongst the crowd, which can be very disheartening if you have great products.

Outsourcing your fulfilment may be the solution you need to help your D2C brand thrive. Let’s explore some common reasons for outsourcing your order fulfilment to a 3PL company.

Outsourcing; why use a 3PL?

Giving your brand a competitive edge; exploring your fulfilment options…

Unsure of why you should outsource your fulfilment? Think of any pain points you have with in-house fulfilment What issues and complications do you frequently run into? What is preventing you from reaching your business goals?

As a 3PL company, here are the common pain points we here from clients looking to outsource their fulfilment;

  • Can’t get their orders out on time, slow operations overall
  • Limited network connections
  • Don’t have enough money to grow and scale their business,
  • Don’t have enough time to focus on other areas of their business, such as sales, marketing, and product development
  • Poor inventory management
  • Struggling to handle returns
  • Struggling to handle demand, seasonal peaks, etc.
  • Limited space available
  • High costs on storage, shipping, and packaging
  • Poor customer satisfaction overall
  • Don’t have access to proper software or technology, manual processes simply won’t cut it anymore in a technology led world, and it minimizes the risk of human error
  • Can’t enter the global market, too expensive
  • Struggling to manage orders across multiple platforms

Partnering with a fulfilment centre; TSP as your partner for growth…

Partnering with a fulfilment centre; TSP as your partner for growth

Regardless of whether you are an established business, or you’ve just started out, TSP Fulfilment can help you with our fulfilment services.

With over 20 years of industry experience, we are experts when it comes to anything from picking, packing and shipping, down to kitting and assembly and handling your returns. We are the perfect option for business. Explore our range of services below…

Homeware; Exploring the growing market…

Partnering with a fulfilment centre; TSP as your partner for growth…

Regardless of whether you are an established business, or you’ve just started out, TSP Fulfilment can help you with our fulfilment services.

With over 20 years of industry experience, we are experts when it comes to anything from picking, packing and shipping, down to kitting and assembly and handling your returns. We are the perfect option for business. Explore our range of services below…

80+ Global Fulfilment Centres

 

We integrate with over 150 platforms

 

18M Sq Ft of Global Warehouse Space

 

Storage, Pick and pack

At TSP we handle everything, starting with the storage, picking, and packing of your products.

We serve a range of markets so we have experience storing, picking, and packing a variety of different products, so we’ve got you covered regardless of what you sell.

Outsourcing your pick and pack with us will help free up your time, while also improving the entire process due to our highly experienced team of staff.

B2B and B2C Fulfilment

Regardless of whether you just do B2C or B2B, or a mixture of both, our team have the knowledge and resources required to successfully get your orders picked, packed, and shipped to your customer or chosen retailer.

While we handle your B2B and B2C fulfilment, you can focus on putting more time and money back into other areas of your business, such as your sales, marketing, and product development.

Shipping and logistics

After we pick and pack your orders, we ship them too.

We ensure you get better deals on shipping and packaging by letting you leverage our buying power, meaning you can save money and put it back into growing your business.

We also partner with a range of couriers, ensuring the needs of your business are being met through a diverse choice in reliable couriers.

Amazon FBM, FBA, SFP…

We are your one stop solution for all Amazon seller services, including FBA, FBM and SFP. With over 20 years of industry experience you can be assured that we are fully equipped to support you..

So regardless of what Amazon service you’re using, or if its a mix of all 3, we’ve got you covered. Check out our Amazon page for more information regarding our Amazon fulfilment services.

Inventory and warehouse Management

Our cloud-based system, MintSoft is easy to navigate and provides you with real time updates so you can always make informed decisions about your stock.

We also run our own in-house system that can provide accurate information for the following;

  • Notify you of stock replenishment needs
  • Notify you of when and when not to re-order
  • Ability to track inventory
  • Ability to automate orders
  • Respond to trends

Returns Management

Returns are inevitable when it comes to your eCommerce business, but managing them correctly is a critical aspect on 3PL services. Here at TSP, we will handle the entire process from start to finish, helping you to main a high level of customer satisfaction.

Carbon Neutral Fulfilment

Are you a sustainable business? Looking to become more sustainable? Working with us means you can do your bit for the planet too, since we are a certified carbon neutral 3PL company.

Kitting, Bundling, and Assembly

Do you sell custom bundles or kits? We’ve got you covered. Our team is trained in kitting and bundle building, so you can be assured your customers will receive their orders in an accurate, timely manner.

Global Fulfilment

Do you require international shipping, or are you looking to expand into global markets? We’ve got you covered with our extensive network of couriers and global warehouses.

Explore our global fulfilment solutions page to see how we can help you dominate the global market, right from the heart of Newcastle.

Customs Bonded Warehouse

Here at TSP we are one of the very few Newcastle based order fulfilment companies with a dry bonded warehouse license.

Our network of freight forwarders means you can easily utilise the power of cross-border selling, allowing you to boost sales and drive growth.

Fulfilling orders for a range of markets…

At TSP, we are able to serve a range of markets within the eCommerce industry, demonstrating our flexibility when it comes to your order fulfilment.

Storage, Pick and pack

At TSP we handle everything, starting with the storage, picking, and packing of your products.

We serve a range of markets so we have experience storing, picking, and packing a variety of different products, so we’ve got you covered regardless of what you sell.

Outsourcing your pick and pack with us will help free up your time, while also improving the entire process due to our highly experienced team of staff.

B2B and B2C Fulfilment

Regardless of whether you just do B2C or B2B, or a mixture of both, our team have the knowledge and resources required to successfully get your orders picked, packed, and shipped to your customer or chosen retailer.

While we handle your B2B and B2C fulfilment, you can focus on putting more time and money back into other areas of your business, such as your sales, marketing, and product development.

Shipping and logistics

After we pick and pack your orders, we ship them too.

We ensure you get better deals on shipping and packaging by letting you leverage our buying power, meaning you can save money and put it back into growing your business.

We also partner with a range of couriers, ensuring the needs of your business are being met through a diverse choice in reliable couriers.

Amazon FBM, FBA, SFP…

We are your one stop solution for all Amazon seller services, including FBA, FBM and SFP. With over 20 years of industry experience you can be assured that we are fully equipped to support you..

So regardless of what Amazon service you’re using, or if its a mix of all 3, we’ve got you covered. Check out our Amazon page for more information regarding our Amazon fulfilment services.

Inventory & Warehouse Management

Our cloud-based system, MintSoft is easy to navigate and provides you with real time updates so you can always make informed decisions about your stock.

We also run our own in-house system that can provide accurate information for the following;

  • Notify you of stock replenishment needs
  • Notify you of when and when not to re-order
  • Ability to track inventory
  • Ability to automate orders
  • Respond to trends

Returns Management

Returns are inevitable when it comes to your eCommerce business, but managing them correctly is a critical aspect on 3PL services. Here at TSP, we will handle the entire process from start to finish, helping you to main a high level of customer satisfaction.

So, never worry about handling a return again, because TSP has you covered.

Carbon Neutral Fulfilment

Are you a sustainable business? Looking to become more sustainable? Working with us means you can do your bit for the planet too, since we are a certified carbon neutral 3PL company.

Kitting, Bundling, and Assembly

Do you sell custom bundles or kits? We’ve got you covered. Our team is trained in kitting and bundle building, so you can be assured your customers will receive their orders in an accurate, timely manner.

Global Fulfilment

Do you require international shipping, or are you looking to expand into global markets? We’ve got you covered with our extensive network of couriers and global warehouses.

Explore our global fulfilment solutions page to see how we can help you dominate the global market, right from the heart of Newcastle.

Customs Bonded Warehouse

Here at TSP we are one of the very few Newcastle based order fulfilment companies with a dry bonded warehouse license.

Our network of freight forwarders means you can easily utilise the power of cross-border selling, allowing you to boost sales and drive growth.

Collate your product details and connect your stores / market places

Link you into our preferred courier network

Take delivery of your stock, go live!



Collate your product details and connect your stores & marketplaces.



Link you into our preferred courier network.

Take delivery of your stock, go live!

Fulfilling orders for a range of sectors…

At TSP, we are able to serve a range of markets within the eCommerce industry, demonstrating our flexibility when it comes to your  fulfilment.