The internet has changed the retail landscape in many ways. One of the most beneficial improvements has been the popularity of the direct to consumer (D2C) business model. This post is about how this model helps business owners as well as consumers.
The direct to customer model, is a low barrier-to-entry strategy that allows manufacturers and CPG (Consumer Packaged Goods) brands to sell directly to the consumer.
Direct to consumer businesses deliver products using the eCommerce model to reach customers worldwide.
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You Probably Didn't Know Your Favorite Brands are D2C
At the same time, while popular, this model is not as apparent to the consumer as some other models like direct sales, network marketing, and affiliate marketing.
If you're making a product, it's a very smart way to build your business without involving other entities (middlemen) that could potentially get a share of your profits.
As the marketplace consistently changes, today’s consumers expect to connect with brands in a variety of ways. If a brand isn't able to adapt, they will miss out on establishing a meaningful relationship with them.
As a consumer you may have done business with an online (eCommerce) company that used this model and totally unaware of the model used to deliver a great product and/or service.
The Benefits of Using the Direct to Consumer Model for Businesses
The benefits of using this model are many, but to name a few, it eliminates the barrier between the producer and the consumer, giving the producer greater control over its brand, reputation, marketing, and sales tactics. Plus, it helps the producer directly engage, and therefore learn from, their customers.
Another great benefit for business owners is that this model bypasses the conventional method of negotiating with a retailer or reseller to get your product on the market.
With the D2C models, brands sell directly to the consumer through an online platform.
Big name brands such as luggage manufacturer Away and office supplies manufacturer Quill have already taken the leap to D2C marketing with their marketing campaigns. And the popularity of eyeglass maker Warby Parker and mattress maker Casper it's predicted that more manufacturers will do the same in 2021 and beyond.
Hundreds of direct-to-consumer (DTC) brands took off in the late 2000s and 2010s, selling products directly to end users over the internet, cutting wholesalers and retailers out of the process.
Their marketing dominates social media feeds, subway platforms and podcasts.
This model allows brands to control the user experience, which often leads to lower costs for consumers.
So when thinking about business models for your online business, consider D2C as an option.
Benefits for Shoppers
And when shopping as a consumer, don't forget that many household brands are adopting this model as well.
This could mean more money in your pocket. Here's a list of direct to consumer brands that use this model.
Household and Consumer Packaged Goods
Your home is your castle. Ideally, you want it to be comfortable and cozy. D2C brands have helped turn a lot of the annoying aspects of managing a home into relatively painless to-do points.
This model saves time for consumers which is a big benefit for shoppers who don't want to make a trip to the store.
It delivers the convenience of online shopping for those routine purchases you make on a regular basis. Best of all bulk pricing and fast, home delivery, provides the best of all worlds, right at your fingertips.
In 2018, I started shopping with a direct to consumer company that specializes in eco-friendly household products and I love the products and the convenience of online shopping and quick delivery.
This D2C company takes the guesswork out of finding affordable, environmentally friendly products for your home as well as personal care and skincare products for every member of your household.
