The D2C (direct-to-consumer) business model or use case, is one in which a brand or manufacturer sells their wares directly to their consumers online. It means that brands don’t sell through a distribution channel, wholesaler, retailers, or a third-party marketplace. Naturally, having this sales approach as one of your strategies does not exclude using the other channels. Rather, we have long seen the successes of the Apple Store, Nike Store, and other similar direct-from-brand models working in parallel with more traditional retailing and channel-centric models. D2C ecommerce for manufacturing and brand companies is yet another use case model to diversify your revenue-generating channels.
Besides being a new buzzword for consumers, D2C is growing in both acceptance and importance. Consider that, by 2023, Digitalcommerce360 expects D2C ecommerce for manufacturing to transact $175 Billion USD. That's up 35.6% from $129 Billion USD in 2021. In addition, is 69% of consumers familiar with D2C brands already purchased directly from the manufacturers rel="noopener noreferrer" this past year (src: Diffusion PR research). In short, a growing number of consumers actively want to buy goods directly from manufacturers and brands. In effect, consumers are looking for that direct customer relationship with their favorite brands.
There are a host of reasons manufacturers would want to sell directly to consumers, including:
As consumers shop online more and more, brands and manufacturers need to embrace new marketing strategies—and a direct sales channel to capture their attention, wallets, and loyalty. Besides the myriad reasons for selling directly to consumers, manufacturing needs to consider the additional factor of truly owning their end consumers. This means marketing to them, selling directly to them, and establishing a deeper connection to the brand. Given that 73% of retail consumers use multiple channels to shop, it is a smart move to ensure that your brand adds the D2C model to the mix of shopping channels.
Admittedly, selling D2C is often more difficult than selling through a third-party retailer or distributor. For example, you have to establish your own website, manage customer service, and handle order fulfillment. As a result, many brands have a hard time figuring out if D2C is right for them. That said, there are still ways to overcome these challenges and ensure that your D2C ecommerce business is a success. Here are a few ways you can drive growth with D2C.
D2C ecommerce for manufacturing can be an important step forward for your brand, but it can also be tricky to get started. Getting it right is important to ensure you are providing the customer experience that consumers expect from your brand. If you are wondering about where to begin your D2C journey, connect with us at OSF. We are pleased to offer our experience and advice in developing hundreds of enterprise-grade ecommerce solutions and to help guide you on your path to success.
Charles brings more than 20 years of experience in marketing, sales, product development, and management. With depth and breadth in varied markets, he drives the right go-to-market and demand generation strategies for OSF’s core products. A lifelong learner, he graduated from the University of Waterloo with degrees in management, business economics, and engineering. Charles also holds several certifications in leadership and marketing.