Brands around the world are waking up to the potential of the direct-to-consumer model. Manufacturers can sell their products to consumers directly. This eliminates the need for middlemen who can eat into your profit margins.
In 2019, DTC e-commerce sales in the US accounted for $14.28 billion. This figure is projected to grow fast in the post-pandemic world that we’re all preparing for. Examples of successful direct-to-consumer brands include Warby Parker, Dollar Shave Club, and many more!
By going direct-to-consumer, you can offer your products to consumers at the lowest possible price while still making the most profit possible. By getting rid of middlemen and selling directly to consumers, brands can position their products in a more competitive price range, making them more accessible.
What Does Going Direct to Consumer Mean?
The Internet has changed the way we socialize and even how we shop. The unfortunate circumstances of the last year prompted the mass adoption of e-commerce platforms as a necessity. While lockdowns are easing around the world, consumers have warmed up to the convenience of e-commerce. That is unlikely to change after the world heals from the pandemic.
From 2016 to 2019, DTC eCommerce grew at three to six times the rate of overall eCommerce sales. Brands can leverage this growing adoption and offer their products to consumers at much lower price points without compromising on margins. By eliminating the need for middlemen, the cost of distribution can be reduced considerably. This will allow you to tap into economies of scale and expand your business exponentially.
To be successful as a direct-to-consumer brand, you have to focus on more than just manufacturing and production. You’ll also have the key to market your products the way you like and handle the after-sales support directly. Being prepared for this is what differentiates a successful brand. By choosing the right channels and tools to market your products, you can generate a lot of demand.
There is no dearth of marketing options in the digital age today. Once you’ve found the right customers and generated leads, it’s time to maximize conversions through disruptive promotions that competitors will not be able to match because their profit margins are lower than the direct-to-consumer model.
Why Is Going Direct to Consumer Important?
Going direct to consumer is important for brands because the competition is adopting this model at a growing pace across industries. Brands that adopt this model earlier will likely have the first-mover advantage going forward. Going direct-to-consumer can change the whole dynamic between the brand and consumers.
The internet has brought us closer than ever. By selling directly to the end-user, you’re able to establish a channel of direct interaction with them. Brands can improve their social media presence by taking advantage of this connection with consumers. Brands that relied on distributors and other middlemen will find that the direct-to-consumer model is a great avenue to build their business around.
Take control of your merchandising and marketing to position your products the way you want rather than the way it fits into large multi-channel retailers’ catalogues.
Which type of brands can go direct to the consumer?
Brands that manufacture their products such as clothing, electronics, FMCG, and confectionaries will have the best prospects with the direct-to-consumer model. Highly customized products and commissioned art can also benefit from this model by doing away with collectives and auction houses.
How to make my brand direct to consumers?
There is no better way to take your brand directly to the consumer than through the Internet. The Internet is a democratized distribution channel that your brand can leverage to its fullest for unmatched reach. Setting up your direct-to-consumer business platform is made easy with Yelo. Yelo lets you design and launches your platform with no coding knowledge required. You can customize the design language to match that of your brand for seamless design consistency.
Here are some of the key features Yelo offers:
- Easy Listing: Create and manage listings easily with a dedicated product management dashboard.
- Quick Filters and Search: Customers can easily search for the product of their choice by searching for terms on the user-friendly interface.
- 24/7 Support: One of the most important aspects of the direct-to-consumer model is to offer a robust support line that customers can depend on and trust. Yelo offers real-time support chat that’s always accessible to customers who need help with their purchases.
- Simplified Marketing: Yelo gives you the flexibility of automating your marketing campaigns through emails, newsletters, and other advertising strategies.
Powerful Integration Tools to Help Optimize Your Store and Marketing
Yelo gives you the best integration options with over 500 partners catering with support for 50+ languages and 100+ payment gateways. No matter your target market, you can find a compatible payment gateway to process your payments on your platform.
With so many integration options, the possibilities are endless. You can optimize your store’s themes, search and filtering options and make it easier for customers to find products.
There is a sea of options that you can integrate into your store to give your customers the best experience. Remember, customer experience is fundamental to this model, and paying attention to it is important.
A customer who enjoys their experience on your online store is more likely to return to it. It also increases the likelihood of them spreading the word among their friends and family. Organic marketing through word of mouth is the best and most reliable way to get more customers. Investing in your user experience goes a long way in the direct-to-consumer model.
Measure Your Own Direct to Consumer Success with Real-Time Analytics
Running a business involves taking stock of how it’s performing and measuring your profitability. The reason you’re switching to the direct-to-consumer model is to maximize profitability.
A convenient dashboard that gives you a complete overview of how your business is performing is part of Yelo. We designed this to be user-friendly and give you insights at a glance without the clutter.
The store management suite includes a mobile app that you can use to manage your store on the go. It gives you key insights and analytics that you can use to make strategic decisions. Real-time data allows you to have complete control over your business at all times.
The direct-to-consumer model is taking the world by storm as the dust from the pandemic settles. People will be incentivized to spend and revive the economy in the coming months and years. This is the perfect time for your business to invest in solutions that will help it be more profitable, by making fundamental changes to the distribution model.
Brands that adopt this model sooner are going to be way ahead of the competition and have already established their online presence while other competitors will scramble to have a piece of the pie.
The direct-to-consumer model is great for businesses across sectors and can help your business scale up quickly. Make the most of the opportunity and contact us now to see how we can help you set up your own DTC platform from scratch without needing coding knowledge.