8 Factors to consider before Jumping to D2C e-commerce.

D2C is direct-to-consumer, a form of e-commerce focused directly on consumers. It involves traditional manufacturers and businesses which, instead of distributing their products through distributors, wholesalers, or retailers, now sell directly to the consumers of their products via their website.
For example, instead of selling skincare products to distribution companies like supermarkets or groceries, manufacturers now create e-commerce websites. By doing this, they can sell directly to customers.

Factors to consider before Jumping to D2C e-commerce.

1. The exponential growth of D2C e-commerce channels since the pandemic

The pandemic restriction that prevented in-person business activities gave exponential growth to D2C e-commerce stores. Even with the offline marketplace closed, consumers never stopped purchasing from their favorite brands via their e-commerce stores. And with the world opening up, a large population has adopted online shopping and prefer shopping from the comfort of their home.

2. Building your own D2C e-commerce store

Pros

1. You’re not subject to any other marketplace’s rules, which means you have a definitive say over the site’s content, design, and product listings.
2. Building your website allows you to build your brand the way you want to. It presents your products in your way and creates a name for yourself, rather than the mainstream marketplace.
3. Since you’ll have direct access to customer information, you can engage in targeted customer marketing and relationship-building activities.

Cons

1. You’ll have less customer reach when you build a site from scratch.
2. You’re directly responsible for the customer support function when customers have issues or complaints, which can consume a lot of time and resources.
3. Running a successful online store often requires hiring team members to support it. Training and paying them also consumes your time and resources.
4. D2C helps in building brand value

3. D2C helps in building brand value

D2C e-commerce is helping businesses take control and better manage customer relationships. Understanding the challenges and benefits associated with D2C e-commerce enables you to target your customers and increase brand awareness efficiently, helping you increase your brand value.

Manufacturers are unable to directly interact with customers and get their feedback to optimize products and processes in the traditional retail model. Manufacturers, however, can interact 1 on 1 with their clients through D2C e-commerce. A D2C brand can identify customers’ needs through personalized communication rather than examine through data from retailers’ backends. Hence improving the customer relationship with the brand further increases the brand value.

4. D2C gives you a better understanding of your potential customers base

Manufacturers are able to directly interact with their target audiences and get their feedback to optimize products and processes using the D2C e-commerce model, helping to understand the potential customer base. With a complete understanding of what customers want, businesses can follow up on all the latest trends and requirements to constantly evolve their products and deliver the best to their consumers further helping in building brand loyalty.

5. Keeps you ahead of the competition

You can stay ahead in competition only when you know what your competition is with. Once you are aware of your competition and your competitors, you are in a better position to provide services and products. Newer techniques of keeping a track of public demand and getting real-time feedback are some strategies that can help you stay ahead in the competition.

6. Going the right way (Web, App or PWA)

Deciding the right headstart for taking the e-commerce route is a very important aspect. Depending on various factors upon which a business operates choosing the right form becomes easy.

7. How does it benefit the D2C e-commerce businesses?

Smartphones account for over 55% of internet traffic today. The drawback faced with the working of e-commerce apps is a limited loyal consumer base. While mobile apps do not necessarily bring any consumers to the business as some may dislike stuffing their smartphones by downloading bulky apps. But PWAs helped overcome all the drawbacks and successfully drew consumers’ attention becoming a major reason for businesses to develop their PWAs.

8. The right technology partner provides an edge

As companies grow, their financial and accounting systems also grow with them. In the transition from outdated accounting systems to modern, a technology partner must be chosen. It can implement the new system successfully and assist with training company personnel on how to operate it effectively

How do you know who will be the best fit for the position of technology partner in your company? Here we will briefly discuss the basic requirements for a technology partner.

1. Aware of your work culture and business

The right technology partner will take significant interest in your company. They will work hard to get to know your team’s values, work, and communication styles. And even personalities so that their team will be prepared to work well with yours.

2. Prepared to meet the long term needs

The right partner will be able to look at the big picture and he will recognize areas for tech enhancements throughout your company. Because technology changes quickly, and so do the needs of a growing company, work with a vendor that looks ahead and has options not only for today but also for tomorrow.

Example :

Perhaps one of the most well-known D2C website examples, Dollar Shave Club, incorporates the spirit of creating a brand that relates to its audience and appeals to them creatively. This company wanted to create a way to sell razors and other grooming products directly to consumers through a subscription.

There are two big takeaways from this D2C website example that you can implement into your strategy. First, don’t be afraid to get creative with your marketing. Think and implement an out-of-the-box approach that will help your brand to stand out from the competition. Being unique will make you more memorable in your audience’s eyes. 

Second, stay true to your brand. Dollar Shave Club is one of the best examples as they’re authentic and stuck to its brand identity from the start.

Conclusion:

Jumping into D2C eCommerce seems like a great opportunity but only if done in a well-planned and structured manner. Keeping the above factors in check will help your business grow exponentially.