Direct to Consumers Business Model is Touching MassesJuly 29, 2021
The term “direct to consumer” (DTC) describes the companies that make products and sell them to consumers online. In addition, they also have their own branded stores, as they avoid traditional multi-brand retailers like department stores. According to data, last year, 81% of consumers planned to shop for DTC brands within the next five years.
It’s thus clear that the D2C business model and boutique brands are taking over retail. They are coming forward with creative and digital-first techniques to keep and make loyal customers. There are so many reasons for brands to skip the middleman or third parties and deliver straight to customers. The most important reason is owning your data and creating trustworthy and long-term relationships with buyers.
The basic concept is to sell products higher than wholesale but lower than retail. The retails also have their store rent and promotion costs included. The consumer pays less, but the producer makes the same profit and builds a direct relationship with the consumer. Thus, a win-win situation for everyone.
Are you thinking of building a Direct to Consumers business model? Take a look at what this strategy is and how sellers can set themselves up for success.
What is D2C eCommerce?
By definition, the term D2C eCommerce refers to manufacturing businesses that manufacture, develop products/services & distribute them directly to their consumers. For the selling process, the product is always directly sent to the consumer avoiding third parties like traditional distributors. Moreover, sellers also bypass retailers, wholesalers, / any other type of middlemen to deliver their products, thus keeping the prices low.
There are so many D2C brands in the market now, and they sell their products on digital channel platforms. These platforms include social networks, marketplace, or enterprise’s eCommerce site. Though there are some recognizable brands mentioned above, now thousands of sellers are entering into D2C or B2B eCommerce platform. These brands are leveraging mobile and digital channels and bypassing traditional sales models.
Their strategy is to focus on maintaining the relationship with the loyal customer base and creating loyal customers. In addition, these sellers also build links with potential customers who are interested in their products. They take the help of multiple channels like social media or websites to reach them.
Brands that are Leading in D2C
There are many brands in different categories that are leading in the D2C business model.
- Accessories – If you’re in a fix between economic and crude or super expensive, these companies brought the solutions.
- Beltology – The founders understood that belts are more than just holding up your pants, and thus the idea of their eCommerce store came up. They began designing belts that were more than just a necessity and created a digitally-driven experience. That made it easy for the customers to find the right belt they were looking for.
- Bombas – Socks are more than the necessary stuff that goes on your feet before you put your shoes on. Bombas’ socks are a bit different and have a style statement. They offer super comfortable socks, which are suitable to exercise in and also help you give back.
- MVMT – They sell beautifully curated, premium, hard-wearing watches that can go places. They offer classic, stylish versatile pieces that won’t make a hole in your pocket / even make you afraid of scratches.
- Clothing & services
- Black milk – The brand was built through direct marketing and continues to use it to effectively reach its customers.
What are the Benefits of using the D2C Business Model?
Shoppers want and are willing to pay for quality, security, and service while enjoying the convenience of online shopping. Here are some benefits of the Direct to Consumers business model.
Expand Your Brand Reach – Before the internet or B2B eCommerce brands largely relied on resellers to reach customers. At that time manufacturers or wholesalers didn’t go directly to consumers to sell. But now it’s easier for brands to reach their customers when everyone has a mobile in their hand. They don’t need a physical store when website translation and localization software are there.
Control Your Brand Story – Online is a great place to make products accessible, but there can be pitfalls. Selling directly to customers allows brands to manage the messaging and image of the brand.
No Middle Man – The best thing about starting your own store is that you do not have to pay commission to the middleman which saves plenty of profit margin for yourself.
Better Connect with the Customer – Customer data is considered one of the most crucial assets for digitally native brands. Stores such as Amazon take this privilege from you and take control of your customer base. Having your own online Store lets you handle your customer base and take it forward in growable way.
Things to Consider When Starting a D2C Online Store
- Pick an everyday item and make it affordable– You need to find a proper reason to enter the market.
- Market in a way to address customer’s pain points- In addition to affordability, focus on marketing.
- Develop a subscription-based model– Many brands offer their customers a cancel-any time subscription, this helps you gain customer’s trust. Moreover, it saves your consumers time, money, and effort, and thus your retention rate increases.
- Return policy- Most D2C brands operate online, and customers hesitate to buy any new things if you don’t offer free returns.
- Use celebrity influencers- Promote your products through Instagram and Twitter influencers to reach to mass target audience effectively.
Quick eSelling – One Stop Solution for D2C Businesses
Quick eSelling helps you sell online instantly and to set up your eCommerce store effortlessly. Quick eSelling ecommerce platform promises to take care of the technology backend & thus helps you go online instantly with least capital investment. You also don’t need to know how to code, leave it on the website and focus on growing your business.
Both, E-commerce websites & mobile apps keep users hooked as they’re easy to use and accessible. There’s more chance to achieve loyal customers this way.
When there’s a shift in sales paradigm by the consumers, brands are finding success by adapting to a direct-to-consumer eCommerce solutions.