Direct-to-consumer is the selling goods direct to customers thereby bypassing third-party retailers, wholesalers, or any other intermediate. In 2021 eCommerce can be significant to the digital growth of the direct-to-consumer (DTC) business model. Shifting a digital infrastructure from the well known B2B model to the DTC model can be daunting. However, it is the right move for many businesses as a consequence of the pandemic. The time has never been better to adapt business models than this moment.

Shift to DTC

eCommerce innovations have made it straightforward for customers to locate products they need online. Today’s B2B customer expects to visit brand websites and wants to make a purchase as easily as B2C. The 2018 Consumer Preferences Survey 87% of consumers prefer to buy products directly from a brand online, if they had the option. The number of customers is probably higher since the pandemic started. By last summer a study by DTC and brand loyalty indicates that about 55% of consumers use DTC channels to buy consumer packaged goods or nonperishable items they use regularly. 

As with many new trends, young customers account for a lot of this change. According to the study, 67% indicate they use brand-run websites and stores to buy consumer packaged goods. Furthermore, 70% of shoppers plan to maintain the new habit even after the effects of the pandemic is over. Businesses in consumer packaged goods have led in using DTC eCommerce sites. However, many manufacturers are still not totally convinced enough to make the required investment. By the end of 2018, just 54% of manufacturers indicated the desire to sell online DTC.

DTC advantages for Manufacturers

There are various advantages DTC eCommerce offers to manufacturers beyond maximizing revenue. Primarily, it makes products easier to find and purchase online. DTC sites allow businesses to reach more potential customers that are ready to buy their products. According to Retail TouchPoints, a third of online shoppers factor in a brand manufacturer’s site as the major influencing resource in the buying decision. DTC eCommerce ensures the customer to buy right away. As opposed to risk losing sales because customers cannot buy the product online form the brand in question.

Power over the customer journey

Perhaps, as important, is the fact that direct-to-customer allows businesses to gain control over the customer experience. DTC brands control of the entire customer journey, from the moment a customer locates the website. Until the order is fulfilled and beyond. DTC eCommerce empowers businesses to provide customer-centric online journeys. This includes, products recommendations, recent products, reviews and other features. Brands can also launch email campaigns to gather feedback on how customers respond to products. Businesses can also communicate better with customers. 

Gather customer data

For many manufacturers, the majority of data they receive is sieved through retailers. As a matter of fact, it is mostly related to transactions. However, when your brands sell DTC, businesses can gather a wide range of first-party data on customer habits. This data and transaction data will give a fuller understanding of the target customer. Weaponizing this data allows managers to make more intelligent decisions on issues ranging from product development to packaging and pricing.

In conclusion, manufacturers can benefit greatly from a DTC eCommerce model at least, just as much as a b2B model. In fact, many find it is a more efficient model. The data tells us that it is a great solution to help manufacturers go digital fast. To find out how a DTC eCommerce infrastructure can help your company, contact DigiCommerce today.