Every week I have conversations with different brands who are confused about how to keep their inventory forecasts accurate when a big department store like Macy's or Harrods orders a significant chunk of their inventory.

While it's tempting to fulfill these large B2B orders without question, I always ask them:

"What will happen to the brand equity you've spent years building if your DTC channel constantly suffers stockouts because of B2B fulfillment?"

That's precisely why I decided to write this post—to share my learnings from working with dozens of businesses at Fabrikatör who have successfully navigated this transition.

As the CEO of Fabrikatör, I've worked with hundreds of e-commerce brands facing a critical turning point in their growth journey: expanding from direct-to-consumer (DTC) sales into wholesale (B2B). This transition represents a powerful growth opportunity that more DTC brands are pursuing—and for good reason.

The B2B Expansion Trend: Why Brands Are Making the Move

According to estimates, 80% of B2B sales will be generated digitally by the end of 2025. By contrast, the share in 2019 was just 13% (Source: Gartner).

We're witnessing a significant shift in the e-commerce landscape. After years of DTC-first strategies, more brands are diversifying into B2B channels. This isn't coincidental—it's strategic:

• B2B provides a more stable, predictable revenue base that can offset the increasing volatility and rising customer acquisition costs in DTC channels
• Wholesale partnerships dramatically increase brand exposure and awareness through established retail networks
• Multi-channel presence creates more touchpoints with customers, strengthening overall brand positioning
• Economic uncertainties have pushed brands to seek revenue diversification rather than relying solely on direct consumer spending

This trend is accelerating, with industry reports showing significant increases in DTC brands adding wholesale channels over the past two years.

Understanding the Different Dynamics: B2B vs. DTC

Before diving into inventory strategies, it's crucial to understand the fundamental differences between these channels:

Business Model Differences:

Operational Differences:

These differences create distinct inventory challenges when operating both channels simultaneously.

The Dual-Channel Inventory Dilemma

When brands first approach me about adding wholesale to their DTC business, their concerns typically center around one question: "How do we prevent our B2B and B2C channels from cannibalizing each other's inventory?"

It's a valid concern. The traditional approach—maintaining separate inventory pools—is not only inefficient but also creates unnecessary complexity and ties up capital.

Common Challenges When Adding B2B to Your DTC Brand

Before discussing solutions, let's address the major inventory challenges brands face when expanding into wholesale:

1. Forecast Disruption from Large B2B Orders

B2B customers typically order in bulk quantities that can rapidly deplete your inventory. A single wholesale order might equal hundreds of DTC orders, creating significant forecast disruptions:

• Historical DTC demand patterns become less reliable predictors of overall inventory needs
• Traditional reorder points and safety stock calculations no longer apply
• Production planning becomes more complex with these "lumpy" demand patterns

One fashion brand we talked with saw their bestselling product's forecast accuracy drop in the months following their wholesale launch, leading to costly emergency production runs.

2. The Revenue Prioritization Trap

The allure of large B2B purchase orders can create a dangerous temptation to prioritize wholesale fulfillment at the expense of DTC inventory:

• A $100,000 wholesale order feels more impactful than maintaining stock for $100 DTC orders
• The immediate revenue from B2B is easier to quantify than the long-term impact of DTC stockouts
• Sales teams focused on wholesale accounts may push for inventory allocation that undermines DTC operations

This prioritization, while understandable, creates significant long-term risks by eroding customer loyalty, wasting marketing investments, stalling brand momentum, and potentially transforming your consumer-facing brand into an anonymous wholesale supplier.

3. The Brand Equity Balance

Perhaps most concerning is the long-term brand impact. When inventory shortages consistently impact your DTC channel to fulfill wholesale demands, you risk:

• Degrading the direct customer experience that built your brand initially
• Losing control over how your products are positioned and sold
• Becoming dependent on retailers rather than maintaining your unique consumer relationship
• Diminishing the brand equity that made you attractive to wholesale partners in the first place

The Integrated Inventory Model: Strategies for Success

1. Unified Forecasting with Channel-Specific Parameters

The foundation of successful dual-channel inventory management is unified demand forecasting that accounts for the distinct patterns of both B2C and B2B operations:

• B2C demand typically follows seasonal patterns, responds to marketing initiatives, and can fluctuate daily
• B2B demand centers around larger, less frequent orders with longer lead times and often follows different seasonal patterns

Rather than creating separate forecasts, use a unified system that factors in both channels' unique characteristics while providing a holistic view of total product demand.

2. Strategic Safety Stock Allocation

Both B2C and B2B sales have different implications for stockouts:

• A DTC stockout might mean disappointed customers and lost individual sales
• A B2B stockout could jeopardize entire retail partnerships and significant revenue streams, especially if you have service-level agreements (SLAs) with penalties for non-fulfillment

Calculate channel-specific safety stock levels based on:

• Order size variance (higher for B2B)
• Lead time reliability (wholesale partners often have strict delivery windows)
• Stockout impact (financial and relationship costs)

Then establish clear prioritization protocols for allocation during supply constraints.

My Personal Approach: Process Over Tools

Most inventory problems are process problems rather than tool problems. Even the best inventory management tools can't solve fundamental process issues.

And yes, I am saying this as a founder of a "tool" company. In my experience, even the best inventory management tools can't solve fundamental process issues. Here are some specific processes I personally recommend for easing the tension between B2B and DTC inventory demands:

• Align B2B orders with production lead times: If possible, make purchasing contracts 3-4 months ahead of time. When you align your B2B order timelines with your production lead times, you can make just-in-time inventory decisions that avoid stock risks and effectively keep B2B and DTC inventory separated.
• Implement strategic account tiering: If you have multiple B2B customers, prioritize them based on their strategic importance and inventory volume. If you're working with Harrods in the UK or Bloomingdale's in the USA, these are the accounts you don't want to risk losing over some small boutiques you're also providing stock for.
• Create a DTC priority buffer: Some of our clients implement what we call a "DTC priority with 20% buffer" approach—maintaining capacity to fulfill forecasted DTC demand plus an additional 20% buffer before making inventory available for wholesale orders. This clear framework has dramatically reduced channel conflicts.

The Bottom Line: Integration Over Separation

The most successful brands don't view B2C and B2B inventory as separate entities but as components of a single, integrated system. This approach:

• Reduces total inventory investment
• Improves overall inventory turns
• Creates flexibility to respond to demand fluctuations
• Provides competitive advantage through superior service levels

At Fabrikatör, we've seen brands reduce their overall inventory investment by up to 25% while increasing service levels across both channels by implementing these integrated strategies.

The most successful brands don't view B2C and B2B inventory as separate entities but as components of a single, integrated system.

The transition to successful multi-channel inventory management isn't just about preventing cannibalization—it's about creating a strategic advantage that drives growth across your entire business while preserving the brand equity that made you successful in the first place.

Bahadir Efeoglu is the founder and CEO of Fabrikatör, an advanced inventory planning and demand forecasting platform designed for growing e-commerce brands. With extensive experience helping DTC brands scale their operations, Bahadir focuses on transforming inventory from a growth constraint to a strategic advantage.

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