Holiday shopping has changed drastically over the past decade. What was once dominated by trips to the local mall is now increasingly driven by online purchasing, with consumers spreading their spending across digital and physical channels.
In 2024, for instance, 34% of consumers say they did the majority of their holiday spending online. Another 7% percent shopped exclusively online, while 30% split their spending evenly between online and in-store. These patterns highlight more than a seasonal spike; they reflect a permanent shift in how consumers expect to buy.
For brands and fulfillment operations, this shift brings a new layer of complexity. The growing split between direct-to-consumer (DTC) and business-to-business (B2B) fulfillment demands fundamentally different fulfillment strategies and intentional operational design.
DTC orders are driven by speed, flexibility, and customer experience, with rising expectations around delivery options, accuracy, and transparency. B2B fulfillment, by contrast, is more volume-driven and predictable, prioritizing efficiency, consistency, and scale.
Brands that succeed in today’s omnichannel environment recognize that one-size-fits-all fulfillment doesn’t work. The goal isn’t to choose between B2B or DTC fulfillment; it’s to build an operational model that supports both…without compromising performance on either side.
Core differences between DTC and B2B fulfillment
Today’s DTC fulfillment looks very different than the traditional B2B approach.
- Order volume and cadence: DTC fulfillment is built around high order variability and unit-level picking, with fluctuating daily volume and small parcels moving quickly. B2B fulfillment, on the other hand, is more predictable, moving cases and pallets at higher volumes with slower, planned turns.
- Packaging and prep: Getting orders ready for DTC shipping often means adding customized touches, branded packaging, and kitting. B2B prep is compliance-driven, focused on pallet configuration, labeling standards, ASNs, and retailer requirements.
- Shipping and transportation: When shipping DTC orders, brands turn to small parcel carriers, regional carriers, and two-day or even same-day delivery speeds. Whereas B2B shipments rely on LTL and FTL carriers, along with routing guides and delivery appointments.
- Service expectations: DTC success depends on speed, accuracy, and customer-facing visibility. B2B fulfillment prioritizes consistency, compliance, and bulk accuracy, often powered by EDI and structured workflows.
Adapting warehouse workflows to serve both channels
DTC and B2B fulfillment place very different demands on warehouse operations, and supporting both requires purpose-built workflows rather than a single, blended approach.
Picking strategies are a clear example. Operations serving both channels need a mix of dedicated and shared pick paths and zones, supported by distinct slotting strategies. DTC fulfillment relies on small-unit slotting to move individual items efficiently, while B2B fulfillment is optimized for case and pallet picking.
These differences also shape labor planning. Piece picking is more time-and labor-intensive, while case and pallet picking move faster with fewer touches. To maintain performance across both channels, brands must allocate labor intentionally.
Returns further highlight the contrast. In DTC fulfillment, returns are a critical part of the customer experience, with high expectations for speed and convenience. B2B returns, by comparison, tend to be less frequent and more straightforward, typically centered on damaged goods or exception handling.
Inventory strategies for dual-channel operations
Inventory management looks very different when supporting both DTC and B2B fulfillment. Brands must decide whether to operate from a unified inventory pool or maintain segmented stock for each channel. Each option carries distinct tradeoffs around flexibility, risk, and control.
It’s also essential to consider how much buffer stock to hold (or not) for each channel, and forecasting will vary widely, with B2B providing a more predictable forecast.
Lastly, when managing SKUs for both channels, brands need to consider promotional builds, case packs, and multi-packs, especially for B2B customers.
At the center of a successful hybrid fulfillment operation is inventory visibility. Without it, DTC teams can’t staff or stage effectively to meet demand, and B2B operations risk split shipments, delays, and backorders. Clear, real-time visibility is what keeps both channels running in sync.
Technology requirements
Managing both DTC and B2B channels requires software to support each. A warehouse management system (WMS) will need a variety of rulesets: cartonization for DTC, for instance, and pallet-building logic for B2B. Additionally, brands need EDI for B2B compliance and API connections for DTC storefronts.
Other technologies that support two-channel fulfillment include visibility tools. For example, consumer-facing tracking for DTC and portal access for brands. Within the warehouse floor, modern automation is a necessity to support both types of fulfillment. Equipment like put-and-pick walls, conveyors, sorters, and automated mobile robots will all support fulfillment operations.
| Technology Area | DTC Fulfillment Needs | B2B Fulfillment Needs |
| Warehouse Management System (WMS) | Cartonization logic, single-item & multi-item picking, order-level optimization | Pallet-building logic, case picking, wave & batch optimization |
| Order & Channel Integrations | API connections to ecommerce platforms (Shopify, marketplaces, OMS) | EDI for retailer compliance (850s, 856s, ASNs, invoicing) |
| Inventory Management | Real-time inventory updates, fast SKU-level visibility | Allocation by customer, forecast-driven replenishment |
| Visibility & Tracking | Consumer-facing shipment tracking and delivery notifications | Brand and retailer portals for order, inventory, and ASN visibility |
| Warehouse Automation | Put walls, pick-to-light, sortation for high order volume | Conveyors, pallet handling, bulk movement |
| Advanced Automation | AMRs for flexible picking, dynamic slotting support | AMRs and robotics for pallet moves and replenishment |
Dual-channel fulfillment requires a smarter operational foundation
DTC and B2B fulfillment operate by different rules. Treating them the same? It creates risk. Success requires purpose-built workflows for each channel, supported by a shared operational framework that keeps inventory, labor, and technology aligned.
Kase enables omnichannel brands to execute both models with confidence, combining flexible fulfillment technology with processes designed to adapt as demand shifts. Ready to take a closer look at how your fulfillment strategy stacks up? Talk to an expert today.
