Sr. Product Manager
Ottomate International, India
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What is Direct-to-Consumer?
Direct-to-Consumer, as the word suggests, is a sales strategy model in e-commerce, wherein, the business sells directly to the customers without any mediator involved. Unlike the traditional B2B business model that sells via a chain of vendors, resellers and retailers.
Put simply, when a wholesaler or producer sells directly to the end consumers through an e-commerce website then it is called D2C.
In a supply chain sales model there are lengthy negotiations at every stage leading to a long time in product launching, delivery and feedback. In D2C, companies cut out the middlemen and leverage the power of cloud and technology to sell their products to the consumers directly.
How Direct-to-Consumer Works?
Direct-to-Consumer works on the principle of if you could make a product, you hold the power to sell it too. Make the product, build a new website, market it, let people buy it and then in a matter of months when done right, you would end up making your product into a brand on its way to be a millions of worth D2C brand.
The days when consumer products were being sold majorly through stores with prime focus on supply chain management are gone. The CPG system was way too dependent on striking and finding efficiencies amongst all the stakeholders involved in supply chain- supplier, manufacturer, wholesaler, retailer and distributor.
In D2C the company manages everything and takes orders online. This makes the process more and more independent, marketing focused, and light. The way to reach customers changes and gets as direct as it could get, letting the producer control every aspect of the consumer journey and ensuring a great experience for them.
There are multiple aspects that need attention when you choose to adopt Direct-to-Consumer sales models like Real time inventory and warehouse management, payment reconciliation, warehouse management, cross border solutions, instant delivery at doorstep, omnichannel presence, cross border solutions and more.
Direct-to-Consumer - Key Takeaways
When you opt for Direct-to-Consumer, you are able to engage your consumers better through a host of things you offer them like featuring them on your blog, asking them to write for you, having them share testimonials, product pictures and so on and so forth.
User Generated Content
When you become a Direct-to-Consumer brand, you can also utilise a lot of user generated content to drive engagement, impact SEO positively, get a good number of backlinks and free marketing for your brand by the users.
If you have a retention plan in mind, and want to ensure users stay with you for a longer term, you can develop a mutually beneficial relationship by opening a subscription and within it offering some discounts. This way you get regular payments and customers get the products they love at a lesser price. And remember, you get the freedom to do all this because you are a D2C brand.
If besides subscription, you also keep rewarding your consumers , it will help improve brand affinity while also making them come back to you and choose your brand over others not just because you are rewarding them but because not only are your products awesome, you also are valuing your customers well enough.
Frequently Asked Questions
As the name suggests, Direct-to-Consumer is the eCommerce strategy to reach the consumers directly. This strategy reaps the benefit of the elimination of any intermediate and representing the brand directly to consumers.
Direct-to-Consumer sales is a process of selling products directly to the consumer to make the customer experience more seamless.
The brands or Sellers wanting to capitalize on direct contact with the consumers prefer to sell directly to consumers and are referred to as Direct-to-Consumer brands. It can be an Internet first brand or a legacy brand.
If a brand reaches out to consumers directly by using its own channels without relying on any traditional intermediaries, It is called a Direct-to-Consumer brand.
To go Direct-to-consumer, the elimination of the middleman is the key. Direct-to-consumer brands are also proactive in responding to customers and acquire customer data in order to make key business decisions. Vinculum plays an important role here to provide you with an entire Direct-to-Consumer toolkit.