{"id":18724,"date":"2021-06-24T17:31:58","date_gmt":"2021-06-24T12:01:58","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=18724"},"modified":"2022-11-11T11:01:27","modified_gmt":"2022-11-11T05:31:27","slug":"d2c-ecommerce-brands-have-an-advantage-over-other-businesses","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/d2c-ecommerce-brands-have-an-advantage-over-other-businesses\/","title":{"rendered":"5 Ways D2C ecommerce brands have an advantage over other businesses"},"content":{"rendered":"

Traditionally, marketing was done through word of mouth, but now that the internet has become a part of our lives, we are able to build and sell our products online. However, if your business is not listed in the e-supermarket, then forget about reaching customers<\/strong><\/p>\n

As marketplaces struggle to fulfill customer orders and retail stores remain shut, consumers have started to turn to the brands’ websites or online stores directly to buy products. This has given rise to the D2C eCommerce sector in India.\u00a0<\/span><\/p>\n

What is D2C?<\/strong><\/h2>\n

A direct-to-consumer<\/strong>\u00a0(D2C) is a business model that allows businesses to take control of their product distribution by eliminating middlemen, wholesalers, and retailers. <\/span><\/p>\n

It allows brands to sell their products online to consumers directly. Even major brands like Loreal, PepsiCo, and Nike have adopted the D2C model to meet changing market needs.<\/span><\/p>\n

\"D2C
source: moengage.com<\/figcaption><\/figure>\n

But are these companies making the jump to D2C now?<\/strong> <\/span><\/h3>\n

Businesses are taking a direct approach for a simple reason – to stay competitive.\u00a0<\/span><\/p>\n

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According to Insider Intelligence<\/a>, between 2016-2019, online D2C sales grew 3-6 times the rate of overall sales and\u00a0is expected to reach an estimated 103.4 million by 2022.\u00a0<\/strong><\/p>\n<\/blockquote>\n

D2C has grown in various sectors, but there has been a drastic and positive change in the fashion start-up industry. This sector is likely to be a source of growth for most fashion related businesses.\u00a0<\/strong><\/p>\n

Selling directly gives you full control of the end-to-end journey of your product. You have direct contact with your customers, providing opportunities to deliver value, address pain points, and create a standout brand experience.\u00a0<\/span><\/p>\n

99% of leaders of consumer goods companies are investing in D2C sales, as per the\u00a0Consumer Goods and the Battle for B2B and B2C Relationships<\/a>, Salesforce Research.<\/b>
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5 ways your business benefits from D2C channels<\/strong><\/h2>\n

1. Personalized customer experience<\/strong><\/h3>\n

When a middleman sells your products to the end consumers, only they have access to that customer data. Whether they are retailers or a marketplace like Amazon, they tend not to share what they know.<\/span><\/p>\n

Instead, if you decide to sell products to consumers directly, you collect that <\/span>first-party data<\/span> and know more about your customers. This data will help your brand to cross-sell and upsell. You can acquire new customers more easily by using what you know about your current customers.\u00a0<\/span><\/p>\n

Nearly 50-60% of the consumers share information regarding the customized offers that were given to them.<\/strong><\/p>\n

Also read – How to keep customers happy – expert guide to help you<\/a><\/div>\n

2. Direct feedback<\/strong><\/h3>\n

With a direct connection to customers, you can learn more about their experiences and about their needs. through online surveys. It allows you to improve your products based on customer feedback. You can find out what your customers like and don\u2019t like about your products and develop new iterations quickly.<\/span><\/p>\n

For example, the <\/a><\/span>KIND snack company<\/span> sells products directly to consumers and offers a subscription service and the opportunity for individuals to choose their snacks. This lets customers try out new products before making a bigger commitment. Therefore, the company quickly learns which new products are a hit and which might need some adjustments.<\/span><\/p>\n

3. Better customer relationships<\/strong>
\n<\/span><\/h3>\n

The ability to develop direct customer relationships<\/a> <\/span>is one of the biggest benefits of going DTC. Your digital channels can provide valuable insights into your customers\u2019 attitudes, shopping data, and preferences. Using this data, you can build stronger relationships with customers at every touchpoint. It allows you to create the experience that your customers have been looking for.\u00a0\u00a0<\/span><\/p>\n

One real-world example:<\/strong> A leading bicycle maker opened a D2C channel. They collected data from their customers and learned that gender-differentiated sizes were unnecessary since every rider was unique. They saved millions of dollars by eliminating male and female-specific bikes.<\/span><\/p>\n

4. Expand sales\u00a0<\/strong><\/h3>\n

You no longer have to depend on distribution partners to give you more shelf space. By going direct to consumers, you can reach consumers who don\u2019t live near a retailer and offer your products. This also solves the problem of customers not having access to your product when the retail stores run out of stock. You can fill the gap with your very own D2C eCommerce channel.<\/span><\/p>\n

India began to see progress in D2C startups in 2021, which is one of the greatest achievement in the marketing world. This motivates most of the small businesses to be on toe and face other competitors as well.\u00a0<\/strong><\/p>\n

\u00a05.\u00a0Improve profit margins<\/strong><\/h3>\n

Distributors purchase goods at significant discounts while other intermediaries and marketplaces charge a commission. Through a D2C channel, you can capture the entire amount your customer pays. That means a higher product profit margin for your brand!<\/span><\/p>\n

Indian (D2C) businesses have shown exponential growth in recent years and are expected to surpass $100 billion in sales by 2025.<\/strong><\/p>\n

Although selling direct has many benefits, there are quite a few challenges one has to overcome when adopting a direct model. Before adopting a direct-to-consumer channel, you might want to ask yourself these questions:<\/span><\/p>\n