In case your company is a manufacturer or importer as a wholesale company, it can indeed be interesting to think about selling your product directly to the end customer. After reading this, you might decide if D2C is something that can actually work well for your brand. D2C is not just appealing for smaller companies. For example, big brands, such as Apple, have found D2C generates higher revenue, faster growth and better customer relationships, than traditional distribution channels.
In the past, most products were sold through intermediaries such as distributors or retailers which specialized in these products. To ensure they could sell enough volume to cover their costs, companies had to sell through these intermediaries. In this traditional structure, B2B brand relays completely on how much the retailers are selling. However, technology is disrupting this relationship by removing the necessity for mediators. In effect, this is where D2C strategy comes in.
Direct to customer advantages
- Can create higher margin by cutting out the middle man and enlarge revenue for your business
- Allows you direct customer access with better insight in consumer behavior and needs
- A good choice for companies with a low product count and a high consumer demand for their products
- Great way to gain control over sales channels, but it will require investment in infrastructure and logistics
This to say, D2C is not an easy opportunity to use for everyone in every country around the world! Make sure you’re especially up-to-date with local legislation and VAT rules before starting D2C activities. With this in mind, we are certain we know the right partners that can help with these challenges.
Challenges for D2C
Competing with retailers
Must be remembered, not all retailers will be thrilled to find out that your brand is setting up its own eCommerce strategy. It is important to have a good plan and strategy how you are going to make sure that your retailers will stay happy and keep buying products at your brand.
Order fulfillment to direct customers
Point often overlooked, but for companies that have never sold directly to end customers, this can be a challenge. In order to settle the shipping and logistic process, together with the returns, there needs to be made a clear plan. However, we can surely help with that.
Tailored technology stack for your business needs
As an illustration, this is the technical basis we use for our projects: a platform and many systems and applications that fit together. From that basis, we put together a team. Mixing backend, frontend and also optional Quality Assurance (QA) for testing. For eCommerce technologies, applications and frameworks such as:
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Our awesome clients
They are all awesome. Moving along in the digital world is a joint effort. It’s an honor to work with:
More insight into customer needs
Not only D2C companies will get more insight into their customer needs, but also measure the success of marketing campaigns better than traditional sales channels. The most compelling evidence is that you are, as a brand, getting feedback from consumers about your product right after they have bought or used it. Organizing a good online customer service is, to emphasize, essential when you start selling to direct customers.
We are certified Adobe Bronze Solution partner and have extensive experience with developing Magento solutions. In addition, we have certified Magento developers. We are able to create a well integrated D2C and B2B webshop platform where you can sell directly to customers and can also handle the B2B orders from within the same system.