Why Direct To Consumer(D2C) Is The Next Shift In Ecommerce?

Outline

The growing eCommerce made the consumer taste the freedom of online shopping. This leads to the new trend among online buyers wanting to shop directly from brands that have been changing the eCommerce space. With the consumer’s agile demand, eCommerce businesses are forced to adopt the direct-to-consumer (D2C) opportunities. 

So what should everyone in the eCommerce business environment be doing now? 

Nothing but reconsidering their business model and where they can deliver their best services and fit in the growing trend. As per the business consultants, this particular D2C eCommerce shift majorly benefits the manufacturers by reducing the expense of distributors.

Size of the market: Direct To Consumer(D2C) stats

• It is estimated that DTC sales will hit $18.54 billion of total eCommerce sales in 2022
• More than 62% of consumer brand manufacturers are embracing direct to consumer
• Direct to consumer market grew at least 6X times the rate of overall eCommerce sales
• By 2023, direct-to-consumer buyers number will cross 110 million 

Here in this article, we’ll try to highlight opportunities that have been created.

What is direct-to-consumer (D2C) ecommerce?

D2C or direct-to-consumer is a new-age eCommerce business model where a company or an individual produces a product of their niche in the facility, as well as distributes it within its own channels. In simple, it is a revenue-driven model that purely eliminate the engagement of all kind of intermediaries, most importantly a wholesaler and a retailer.

The D2C business model

Let’s look back at the traditional model that literally includes a supplier, manufacturer, wholesaler, distributor, and retailer. Such a huge tree-like structure makes this model more complex and lengthy negotiations at each stage of production, delivery, and purchases.

Hence, to kick this tedious gap out from the eCommerce business, the direct-to-consumer model has landed a few years back to ignore such dragging traditional standards.

Also, the companies want to eliminate such costs to cut out the middleman, wholesalers, and distributors and instead harnessed the power of the cloud and the rise of eCommerce to sell their products directly to end consumers.

It won’t just stop there, it extended its opportunity even to the business aspiring individuals. For instance, If you could dream up a new product, produce it, build a website. Then market it and get people into it and make them buy it, you could. 

Yes, many live examples are out there in the eCommerce market to show you within a matter of months there is a 100% chance to become an established consumer brand and write it on your brand story like how you built a million-dollar D2C brand from scratch.

So there is nothing more is left other than hiring the best-in-class eCommerce developers on your side.

Evolution of Direct to customer – D2C business model

The evolution of the Direct-to-Consumer(D2C) eCommerce business model has become a statement of modern eCommerce in general. In recent days, many brands around the world are selling directly using the D2C business model and engaging with it.

Hence, their customer base gets to engage without any retail middleman. All thanks to the internet that’s been a game-changer, to say the least.

A report from the expert on the effectiveness of D2C:

Almost 48% of the wholesalers and manufacturers are racing to build Direct-to-Consumer (DTC) channels to remain challenging in revenue generation. About 87% of them seeing these selling channels as relevant to their products and consumers.

Even established brands that relied solely on distribution partners to disturbers their brands are now embracing Direct-to-Consumer sales, and therefore also in full control of the overall brand experience.

D2C ecommerce business: A consumer-centric approach

Many eCommerce industry experts claim D2C as the most innovative consumer-centric approach. As every consumer’s expectation of brands won’t be similar as before either from perspective.

In this environment, consumers can expect nearly anything from brands. Data from a trustable source reveals lost more on this subject:

• More than half of the consumers (i.e. 61%) would be willing to share more information with brands in D2C segments.
• 76% of the consumers say they possess a strong shopping experience 
• 54% of consumers expect to receive a personalized discount within 24 hours of the first contact with the brand. 
• 51% of consumers see it as vital to receive a personalized experience through the brand’s various digital channels.
• For a minimum of 22% of consumers, having the choice of same-day-delivery becomes a vital purchase decision. 

These stats set show there’s an undeniable growth of D2CeCommerce throughout the world increasing by up to 40%. This trend would at least follow for the 10 years sure as a consistent one.

The growth of D2C sales

As the majority of consumers prefer to shop directly with a brand or manufacturer from their site. It is evident that most of the B2B professionals i.e. 62% are responding to this need by selling direct-to-consumer.

As there is an increase in demand for a tendency among the consumers towards buying directly from a B2B site. In 2020, about one-third of B2B consumers found purchasing directly from a manufacturer’s website.

This has resulted in a change in the traditional B2B business model has resulted in a more customer-centric approach.

Hence, the majority of B2B customers have reported preferring to shop online, whether that purchase takes place with a retailer, distributor, or manufacturer. Online shopping has become a new normal of shopping habits that transformed the B2B shopping experience as well.

Factors to consider going for direct-to-consumer – D2C Ecommerce

If you feel inspired to move your existing business model to D2C or about to get into the eCommerce business, consider some serious consideration to succeed. Here are the tips we are suggesting you consider when reaching your customers directly:

• Ensure your products cater to numerous consumers.
• Bigger the product bulk, the bigger the profit margins
• Make sure all your orders placed with appreciate products and easy to ship from one place to another.
• Prefer employing social media influencers for the marketing of your brand to attract a solid consumer base.
• Make sure you be able to provide your shoppers with easy return and cash on delivery options
• Make attractive subscription revenue models.

Footer notes

Finally, it’s clear that the direct-to-consumer – D2C eCommerce business model will witness enormous growth in the following 10 years. 

As Direct-to-Consumer eCommerce business has have proved to be a long-term initiative with better growth trends than other eCommerce businesses.

This eCommerce business model offers a broader brand that gives more reasons to stay on a D2C site.

So, that’s all for Direct-to-consumer(D2C) business model. Go headless today. For more queries, feel free to contact us, click here or write to us at [email protected]