Are you ready to take the leap and disrupt the status quo? You want to start your own direct-to-consumer brand and launch a home service business?
The good news is: it has never been easier to start an online business than it is today. But the path to success is filled with obstacles and challenges. It’s for entrepreneurs like you that we’ve written this roadmap to kickstart and grow a digital-native direct-to-consumer home service business.
In this article, you’ll discover why it’s the best time to launch a direct-to-consumer brand.
Ready? Grab your notebook and let’s dive right in!
In this article
- About Online D2C Home Service Industry
- What do you need to consider?
- Steps to Start Online D2C Home service business
- Something More You Should Know
About Online D2C Home Service Industry
The home services industry works on various aspects of residential homes, from the lawn to the roof. Industry segments include landscaping and lawn care, concrete, plumbing, flooring, cleaning, roofing, home inspections, beauty, just to name a few.
The home services industry is one of the biggest areas of growth for eCommerce in the 21st century. As consumers become more eco-conscious, opting to purchase products which achieve a high level of environmental responsibility, D2C sales are expected to see a 511% CAGR between 2017 and 2023.
Consumers have realized that customers demand solutions to their home-related problems, and you can be one of the successful direct-to-consumer players in your area serving this niche.
It’s this trend that will dominate the future growth of the industry: tomorrow’s consumers are showing an increasing desire for convenient, personalized care, not only when it comes to their interior but when it comes to the exterior of their homes too.
Whether it’s related to home improvement, home furnishing, renting, cleaning or security, there’s a unique opportunity to deliver value and improve the lives of your customers.
D2C On The Boom
The direct-to-consumer industry has been booming on the back of the pandemic with consumers turning to online alternatives to shop for products and make purchases. From home services, home improvement, home furnishing, cooking, and more — there’s a big opportunity for the self-employed to serve potential customers.
While consumers have long relied on offline retailers like supermarkets, pharmacies, and major retail stores for this, there’s now more of a break in the supply chain and consumers want to make purchases online. Additionally, due to the disruption brought on by the pandemic, direct-to-consumer transactions went through the roof in November, with online commerce up + 195% year-over-year.
Captivating. What a ready talent pool and an awesome boon for the future of your business!
What Do You Need To Consider?
However, it’s important to know that if you’re thinking of launching a direct-to-consumer business, it’s not simply a matter of filling a void with a product — it’s a whole new journey.
As the name implies, a direct-to-consumer business is launched online. Through high-quality supply chains and logistics, it delivers products directly to the home, bypassing the large retail businesses and wholesalers whose products are sold through third-party distributors.
Before you launch your business beyond the virtual world, you need to know which products are hot in your area.
To find what products are resonating with consumers, visit your local stores and compare the products in the retail outlet. To find the perfect product or a service, spend time with consumers and explore the whole story: what does it do for them, why should they buy it, and how does it benefit them? Explore consumer insights to create durable marketing strategies to make your business successful. It can also get incredibly tricky to discern the best categories to target as each market is different, which makes creating a strategy all the more complex.
Don’t worry we have covered this all for you in our resource section.
Let’s see how you can establish your online D2C home service business.
Steps To Start Online D2C Home service Business
1. Setup your website
2. List yours Product or Services
3. Build your Checkout Page
4. Add your Payment Gateways
5. Manage your orders and feedbacks
Yes, setting up your business is this easy with Yelo
By ticking all the boxes above, and in the end, you will experience the freedom that comes from establishing an online home services business model that truly immerses you in the customer experience.
Something More You Should Know
Direct-to-consumer home services revenue was just $5.7 billion in 2019 And, according to a 2019 IDEA report, 93 percent of US consumers have said they are willing to pay higher prices to get better service. 50% of millennials want direct access to experts to solve their problems, versus 42% who’d like to pay more but get things done right. Adults under 30 years old spend twice as much as both seniors and young adults on home services.
So, you always have a stroke of luck in starting an online D2C home service business. Let us give you some more reasons to go for this-
1. Access to potential customers is up.
According to the Direct Marketing Association, direct marketing reached new heights in 2016, with more than 45.1 million marketers actively sharing products and services with potential customers. That’s about a 33 percent rise in direct marketers over the last five years. Interesting statistics, to say the least.
In 2020, 1 out of every 4 people in the US used direct marketing to find the right product for them, and 5 million Americans use the Internet to search to find products. That’s great news for marketers, especially local brands, because direct is catching up to and surpassing traditional offline methods. Direct is increasingly driving the purchase process.
2. Google is Supporting You
Google both declared that no local business should waste energy and allocated adequate resources to ensure that local businesses not only have a streamlined online experience but also receive a satisfying offline experience that takes customer discovery and comment well. We ultimately chose to invest time and money into making all our customers satisfied.
3. Associations Favor
The US Direct Selling Association estimates that direct sales will reach a record amount of $263 billion by 2022.
Townsend Bruce, chief marketing officer at Hampton House — the leading provider of home services in North America, reports that “direct to consumer sales will continue to grow 45% annually through 2022.”
So now the question is, how can you start your D2C online home service business without any hassles.
Like many industries, the growth of the home services industry has been fuelled by the rise of technology. Every day is an exciting day for the home services industry as new technologies improve and welcome fresh ideas.
With the home services sector booming, the desire to turn a profit from home services is just as significant as ever.
Another great reason is because of the demand for knowledge and expertise in space. As tech evolves, you’ll find more opportunities to add value to your audience, like community building and community support. This isn’t an impossible feat, but it requires a conscious effort.
And that is why Yelo is here for you. Yelo is a pre-managed hyperlocal marketplace development platform that gives you access to ready-to-use elements for creating your marketplace.
In technical terms, we will call Yelo a Software-as-a-Service (SaaS) system that allows users to create a new product using the SaaS’s abilities and features without writing even a single line of code, designing, and testing.
Don’t let this opportunity pass you by! Once you have insights and inspiration to share with other entrepreneurs, share this article with them.
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