Look at D2C as a special type of business where brands sell their merchandise straightforwardly to consumers, usually through their online or physical outlets. The buyer places the order and the manufacturer ships the same straight to their address.
Typically, the business style requires producers to perform the duties of supply chain middlemen, which might include researching and building a target audience, marketing, selling, and finally order fulfillment.
The difference between D2C and the usual retailer business styles is in the process of getting the product or service to the end user. A D2C organization will allow buyers to purchase products directly from its web store or physical outlet.
On the other hand, a regular retailer business style goes through a typical sales process where the producer sells their commodity to a wholesaler, who engages distributors to reach various target audiences through retailers. Retailers then sell the product directly to the end users.
B2C represents businesses that sell commodities to the consumer, but various intermediaries, such as retailers are involved. Conversely, a D2C business style undergoes the same process but now without the intervention of the middlemen.
Here are the differences between B2C and D2C.
Whenever possible, 88% of buyers will readily buy from a D2C company, as opposed to a traditional retailer, thanks to an intuitive and more direct shopper journey. From the company perspective, businesses choose this style because it allows them to:
As simple as this business style sounds, it comes with various challenges that make many companies shy away from embracing it. For instance, retailers are well-established with a better understanding of clients and the consumer market, which makes it challenging to topple their position.
Other challenges of a D2C business style include:
There are various D2C brands, but the most successful and prevalent ones in the industry include:
The D2C business style will likely dominate the retail industry in the coming years, thanks to increased digitization and a shifting consumer-base pattern that favors buying directly from producers.
Prevalent D2C platforms that can help you get started with this business style include:
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