D2C | Model | 02nd August 2022 | Virtual Wire
Direct-to-consumer, also recognized as D2C or DTC is a business model where brands sell their goods directly to customers.
In practice, this means that there aren't resellers, wholesalers or distributors between the brand and the customer. In terms of eCommerce, D2C just means you’ll be selling straight to your customers online – be that through your own website, social media, or an online marketplace.
The reason the D2C business model has become a growing trend for manufacturers either creating products in-house or via outsourcing manufacturing is that customers are more and more transitioning to online shopping instead of the traditional route of going to a physical location to buy their products.
They are extremely passionate about their customers.
They cut out the middlemen so they can ship directly to consumers.
They have more pricing flexibility than legacy retailers.
The benefits of going consumer are many, but to name a few, going D2C 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.