D2C is a brand new concept in the era of internet that has stirred up the retail scenario. It has become a hot new trend, and everyone wants to implement it in their business model successfully. The Direct-to-Consumers route involves eliminating the middleman out of the picture of eCommerce. This then becomes an excellent opportunity for D2C businesses to earn a significantly high margin and gain direct access to their customers and their data.
However, going the D2C or Direct-to-Consumers route comes with its own set of challenges and makes it nearly impossible for even the established manufacturers to implement it successfully. Startups usually have even more problems such as constrained resources and limited experience regarding navigating existing distributor relationships.
This article will not only help startups understand how to overcome these hurdles but will also help them build a successful Direct-to-Consumer model. However, before we share our insights about building a successful D2C startup, it is essential to have a deeper understanding of this concept.
What is Direct to Consumer (D2C)?
The conventional method of retail includes many parties between the manufacturer and the consumers. These parties include a wholesaler, a distributor and a retailer. D2C bypasses all these involved parties connecting the manufacturers and CPG brands directly to consumers through an online medium.
The upside of this is it allows D2C brands to experiment with their distribution models by shipping directly to customers. Moreover, they can also form partnerships with physical retailers, start pop-up shops and much more. These brands do not need to rely on traditional retail store for exposure anymore, thanks to this business model. The D2C model, along with helping brands and manufacturers earn a high margin, offers other mentionable benefits that are discussed below.
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