B2B vs B2C Shipping in India: Key Differences That Matter
B2B shipments differ from B2C in several critical ways. Average shipment weight is higher — typically 5–500 kg vs 0.5–2 kg for e-commerce. Destinations are commercial addresses (warehouses, offices, retail stores) rather than residential. Documentation is more complex: e-way bill required for goods above ₹50,000 within a state and all inter-state goods; GST invoice with buyer GSTIN; LR (Lorry Receipt) or docket number from transporter. For SMEs managing both B2B and B2C shipments, dedicated SME logistics platforms handle the operational complexity.
Payment terms in B2B are longer — 30, 60, or 90 days credit — which means logistics costs are incurred immediately but cash comes later. Freight costs in B2B are typically negotiated as a rate per kg or per km (contract basis) rather than per-shipment. Minimum chargeable weight applies on all freight modes: 10 kg for surface parcels, 21 kg for LTL air freight.
- E-way bill mandatory for goods above ₹50,000 inter-state or ₹1 lakh intra-state (some states)
- B2B average shipment: 20–200 kg vs B2C 0.5–2 kg — different freight mode applies
- LR (Lorry Receipt) from transporter is the legal proof of dispatch for B2B
- GST invoice with buyer GSTIN is mandatory — allows buyer to claim ITC
- B2B freight is typically ₹2–₹8 per kg for surface depending on distance and route
Choosing the Right Freight Mode for B2B Shipments
B2B logistics in India uses three main freight modes: Full Truck Load (FTL) for large consignments (typically 8+ tonnes); Less-than-Truckload (LTL or part-load) for 100 kg to 6 tonnes; and surface parcel/courier for 1–50 kg. Surface parcel via courier companies like Blue Dart Apex (B2B surface) or DTDC Priority handles the 10–50 kg B2B bracket efficiently with tracking and insurance.
LTL freight aggregators like BlackBuck, Porter, and Rivigo have transformed mid-size B2B logistics in India since 2020. A seller shipping 300 kg from Delhi to Mumbai can get rates of ₹2.50–₹3.50 per kg via LTL vs ₹4–₹6 per kg via courier — saving ₹450–₹1,050 on that consignment. Transit time is 2–4 days for most major lanes. For time-sensitive B2B, Blue Dart's TDD (Time Definite Delivery) guarantees next-day or second-day delivery at premium rates.
- FTL: above 8 tonnes — own the truck; fixed cost per trip regardless of weight
- LTL: 100 kg–6 tonnes — share truck space; pay per kg; 2–5 day transit typical
- Surface courier (B2B): 1–50 kg — fastest, trackable, insured; ₹5–₹12 per kg
- BlackBuck, Porter, Rivigo: LTL aggregators with real-time booking and tracking
- Blue Dart TDD: guaranteed overnight B2B delivery in 220+ cities — premium pricing
GST Compliance in B2B Logistics: E-way Bill, GSTR-1, and ITC
E-way bill generation is mandatory for inter-state B2B goods above ₹50,000 in value and for intra-state movement above thresholds set by each state (most states have ₹1 lakh threshold; some states like Rajasthan require e-way bill for ₹50,000+). Generating an e-way bill requires: GSTIN of supplier, GSTIN of buyer, invoice number, invoice value, HSN code, quantity, transporter ID, and vehicle number. The e-way bill is valid for 100 km per day — a Delhi-to-Hyderabad consignment (~1,500 km) needs the bill extended on day 3 if delayed.
Sellers must reconcile GSTR-1 (outward supply returns) with logistics documentation. Every B2B invoice for goods transported must be filed in GSTR-1 by the 11th of the following month. For businesses with turnover above ₹5 crore, e-invoicing (raising GST invoices on the government's IRP portal with an IRN number) is mandatory — and must match your logistics documents.
- E-way bill validity: 100 km per day — extend online if consignment is delayed
- E-invoicing mandatory for businesses with turnover above ₹5 crore — ensure logistics docs match IRN
- GSTR-1 must reflect all outward B2B supply including freight invoices received
- ITC on freight: buyers can claim input credit on GST charged by transporter if GTA charges 12% GST
- Reverse charge on freight: if transporter is unregistered, buyer must pay GST under reverse charge
Negotiating B2B Freight Contracts and Rate Structures
B2B freight contracts in India are typically annual or bi-annual. Key elements to negotiate: base rate per kg per km (or per tonne km), fuel adjustment factor (auto-revision clause based on diesel prices), minimum guarantee volume (the volume you commit to in exchange for the contracted rate), transit time SLAs with penalty for delay, and insurance — whether included in freight rate or charged separately.
For businesses shipping 10+ tonnes per month on regular lanes, hiring a dedicated transporter rather than spot-booking every shipment saves 15–25% on freight. Dedicated means you sign a contract for a fixed number of truck trips per week/month; the transporter prioritises your freight. This model also reduces paperwork since you work with one company rather than multiple spot brokers.
- Annual freight contracts save 15–25% vs spot rates for consistent volume shippers
- Negotiate fuel adjustment clause: tie rate revisions to published diesel price index
- Minimum volume commitment gives leverage — offer 80% of expected volume as guarantee
- Demand transit-time SLA with ₹500–₹1,000 penalty per day delay for critical B2B routes
- Insurance: get transit insurance bundled in freight rate rather than buying separately
Technology for B2B Logistics: TMS, ERP Integration, and Vendor Portals
A Transportation Management System (TMS) is the core technology for B2B logistics. It handles: rate comparison across carriers, shipment booking, e-way bill generation, LR number management, real-time transit tracking, freight invoice reconciliation, and GSTR-2B matching for ITC claims. Mid-size Indian businesses (₹10–₹100 crore turnover) typically use TMS solutions like Loginext, Locus, or Fareye at ₹8,000–₹25,000 per month.
For businesses using SAP or Tally for ERP, ensure your TMS or logistics platform integrates via API or scheduled data export. Manual data re-entry between systems creates errors in freight billing and GST reconciliation. ApnaCourier's courier API supports B2B dispatch workflows and can be connected to order management systems, enabling automatic shipment creation when a B2B order is raised in your ERP.
- TMS reduces freight reconciliation effort by 60–70% vs manual processes
- E-way bill auto-generation from ERP data prevents errors and penalties
- Real-time freight tracking reduces customer 'where is my order' calls by 40%
- Freight invoice reconciliation with POD (Proof of Delivery) prevents overbilling
- Vendor portal for transporters: online POD upload, invoice submission, payment tracking