D2C ecommerce is a business model where the brand/producer/manufacturer goes direct to consumer by selling their products from their ecommerce website or online marketplace. The D2C brands are different from conventional brands that usually have the traditional retailer mode with multiple middlemen. The D2C model does away with the middlemen and sells the products directly to the consumer.
Traditional Retailer Model Flow: Brand/Manufacturer> to wholesaler> to distributors> to retailers> purchased by the end customer
D2C Model Flow: Brand/Manufacturer> Digital Store ( Website/Mobile Apps/ Online Marketplace)> purchased directly by the end customer
The D2C strategy when planned and executed strategically can be very beneficial for brands looking for cutting down costs and cashing on their brand value.
By cutting out the middlemen and going D2C brands can have a variety of financial, operational and strategic benefits. They can also improve buyer experiences considerably to win customer loyalty. The benefits of direct-to-consumer ecommerce transition for brands are:
Transitioning to the D2C business model comes with its own challenges. However, with detailed planning and well thought product launches, strategic partnerships and an eye on market performance brands can easily overcome these challenges.
Here is a list of key challenges of going D2C:
With more and more customers craving for personalization and direct connect with brands D2C is going to be the most sought after business model. Direct to consumer business models have evolved over the period incorporating a lot of variations and use cases wherein instead of completely doing away with the intermediaries D2C brands are leveraging their dealer and wholesalers network for faster fulfilment.
With D2c brands showing a steady growth even during the slack sales period of the pandemic, brands have started incorporating D2C in their business strategy. StoreHippo offers end-to-end D2C ecommerce solutions for brands of every size and scale. From starting an ecommerce website to going omnichannel, or building a hybrid D2C model with dealers as vendors, StoreHippo has a built-in solution that can be easily customized for the unique requirements of D2C brands.