What Is Direct-to-Consumer (D2C) eCommerce: All You Need to Know

As client demands become more sophisticated, it's becoming more obvious than ever that traditional B2B and B2C business models may soon be obsolete. Organizations should adopt more flexible or hybrid business models and embrace B2B2C and direct-to-consumer (D2C) e-commerce for true customer-centricity and maximum profitability.?

Today, B2B companies are taking notice, especially since the COVID-19 epidemic has heightened the urgency and need for e-commerce; many companies are concerned about consumer confidence and are considering more customer-centric ways.?

What is D2C eCommerce??

Direct-to-consumer (D2C) eCommerce refers to businesses that manufacture and ship their items directly to customers rather than using third-party entities or middlemen like traditional retail outlets.?

It's a practical approach in which businesses control the customer journey. Brands handle not only product manufacture but also marketing, distribution, sales, and customer experience under the D2C eCommerce model.?

Why choose D2C? - Key benefits?

The obvious advantages of D2C are the reason for its growing popularity. Among the most important advantages are:?

• Brands have complete control over the value chain with D2C. By eliminating the intermediaries, it simplifies the complex value chain. This gives brands complete control over the brand experience they deliver. As a result, brands may develop strong relationships with their customers without relying on merchants.?
• D2C eCommerce allows businesses to minimize costs more effectively. There are better margins without intermediaries. Furthermore, because brands can sell through novel channels such as social media, they can earn profits at a lower cost than traditional retail.?
• D2C lowers the barrier to market entry and makes it easier for firms to reach out to their potential clients.??
• D2C allows businesses to receive direct feedback from their customers. They would be able to better grasp their consumers' tastes and cater to them.?
• D2C provides a comprehensive omnichannel experience. Customers nowadays expect to be able to communicate with brands and order things through many channels. D2C assists with this by providing customers with various touchpoints to interact with.?

What is the difference between D2C e-commerce and a traditional retailer business model??

D2C e-commerce refers to when a manufacturer or producer sells directly to customers through their website. A more traditional retailer business model follows the path of the manufacturer/producer > wholesaler > distributor > retailer > consumer.?

The direct-to-consumer (D2C) e-commerce strategy literally "takes out" the middleman. According to research, 55 percent of consumers prefer to shop directly from the brand maker rather than through retailers.?

Because the typical retailer business model is based on bulk purchases, a manufacturer would have to start selling individual items if they wanted to sell direct to consumers. Because their whole business rests around selling products in bulk, most manufacturers have yet to switch to a D2C strategy.?

D2C eCommerce statistics are important to know:?

Let's look at some statistics that show how important D2C eCommerce is becoming —?

• In the previous year, one out of every three buyers purchased directly from a manufacturer's website.?
• By 2024, China's D2C market is anticipated to be worth 123 billion dollars.?
• By 2023, D2C sales in the United Kingdom are predicted to exceed 120 billion pounds.?
• Grove Collaborative, a D2C eCommerce startup, has raised $474.5 million in capital that will last through December 2021.?
• In 2020, D2C sales will account for 500k jobs in the UK. By 2023, the number is predicted to reach 618,000.?

The Future of Direct-to-Consumer eCommerce:?

D2C eCommerce appears to be here to stay, thanks to increasing internet availability and a general shift in customer behavior.?

The epidemic has boosted the growth and demand for direct-to-consumer sales. The D2C model is being used by brands in a variety of industries, including FMCG, cosmetics, and manufacturing.?

Brands who adapted quickly to the D2C eCommerce model have seen significant growth.?

How to get started in D2C eCommerce??

Entering a D2C market is fraught with challenges and risks. You can set yourself up for years of success if your brand can do it successfully.

Here are some pointers to help you get started with D2C:?

• Focus on the customer experience — If you want to launch a D2C brand, you must focus on the consumer experience. Take the time to examine all client touchpoints and evaluate the data to identify opportunities for improvement.?
• Provide a consistent experience across all platforms, both offline and online.?
• To ensure that your D2C strategy succeeds in the long run, choose the correct technical solutions. Use a platform that allows all teams to collaborate and work efficiently.?

For more information on how to leverage D2C ecommerce, contact AIMDek Technologies and learn more about how businesses can enhance their existence.