Evolve your business model, increase your margins, and move closer to your customers with D2C ecommerce.
The D2C business model is attractive to brands and manufacturers for several reasons. D2C allows manufacturers to cut out all intermediaries and to sell their goods directly to the end-consumer. This gives greater control over brand, marketing, and the whole customer experience.
With D2C ecommerce, your brand is not limited by the retailers. You can offer your products in as many variations as you like, at any time of the year. You own the buying journey from the first click on your site to checkout and beyond. Controlling the whole customer journey will enable you to understand your audience better and adapt your marketing, products, and go-to-market strategies to the market demand. It also means you own all the customer data, and in the world of commerce, nothing is more important or valuable than customer data.
Direct-to-consumer (D2C) is a business model where a company promotes and sells its products or services directly to consumers, without any intermediaries. D2C companies manufacture, promote, sell, and ship their own products. The number of businesses applying this business model is quickly rising, and it’s a strategy that’s rapidly changing the ecommerce landscape.
⅓
of consumers bought something directly from the manufacturer in the past year
52%
of D2C brands have experienced surges in demand since the pandemic started
57%
of consumer brand manufacturers are already embracing D2C
Whether you’re a traditional, non-digital manufacturer, or a digitally native business with nothing but an online offering, the D2C route means an opportunity to cut costs significantly. Not having to account for the markup of retailers makes an immense difference. This means you can either lower your prices, win over customers from your competition that way, or substantially increase your margins and increase your profitability.
How do you know if a D2C business model is a good fit for your particular company? There are several factors to consider before making this step. Looking at market data, building and understanding industry benchmarks, and seeking strategic advice are a few ways to do so.
At Vaimo, we’ve helped hundreds of businesses launch their online sales in B2C, B2B, and D2C and can guide you on this journey.
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Building on the DNA of Vaimo’s award-winning websites, we’ve created the Quick Launch Accelerator that combines best practices from UX, web development and consulting to help companies launch their D2C operations efficiently while continuously creating value and ROI.
Enterprise ecommerce sites typically take between 6 and 18 months to launch. But we’ve have revolutionized this process. Our Quick Launch Accelerator allows businesses to launch in only 12 weeks without compromising on quality.
With the Quick Launch Accelerator, you can fast track your digital transformation and build a foundation for sustainable ecommerce growth.
A D2C business model will bring you closer to your customers, reducing the barriers between you and your target audience. With D2C, you own the customer experience all the way from the first click, to the check out–and beyond. This means you need the technology to manage and optimize each step in the customer journey.
To create a compelling front-end user experience, you need to have the proper back-end setup to support it. At Vaimo, we can help you identify and map the end-to-end customer experience you want to deliver and help you develop the different capabilities needed to get there.
Managing a D2C ecommerce site will require branded content in different formats. This includes everything from product images and tutorials to GIF and blog content. You will need to manage large amounts of digital content in text, image, audio, and video format. Therefore, it’s essential to consider what content management tools you’ll need.
Often, this will include a CMS system (Content Management System), a PIM system (Product Information Management), and a DAM (Digital Asset Management). To be able to manage all your content seamlessly, it’s crucial to pick the right combinations and integrations from the beginning.
Not only will you need to manage your content, you also need to manage your data. While the limitless supply of customer data is one of the perks of going D2C, this massive amount of information is only valuable to the extent that you are able to collect, organize, and understand it.
Having the proper infrastructure for storing and digesting your data is an essential success factor. With the help of intelligent processes, AI, and machine learning, this data can be turned into actionable consumer insights. This process can help you build a more personalized and optimized user experience, where the right piece of content is shared with the right person, in the proper channels, at the right time.
A powerful D2C website can transform your business and allow you to scale and increase your revenue quickly. It gives you the freedom and flexibility to experiment with your product range and marketing and create truly fantastic customer experiences. To succeed and reap the benefits of D2C, you need a solid technical foundation to build your business on.
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