When your company is manufacturer or importer as wholesale company it can be interesting to think about selling your product directly to the end customer. After reading this you can maybe decide if D2C is something that can work for your brand. D2C is not just appealing for smaller companies as 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 the B2B brand relays completely on how much the retailers are selling. Technology is disrupting this relationship by removing the necessity for intermediaries. This is where the 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
D2C is not an easy opportunity to use for everyone in every country around the world! Make sure you’re up-to-date with local legislation and VAT rules before starting D2C activities. We know the right partners that can help with this challenges.
Challenges for D2C
Competing with retailers
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 gonna make sure that your retailers will stay happy and buying products at your brand.
Order fulfillment to direct customers
For companies that have never sold directly to end customers this can be a challenge. To settle the shipping and logistic process and returns there needs to be made a clear plan and we can help with that.
Tailored technology stack for your business needs
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 optional Quality Assurance (QA) for testing. For ecommerce technologies, applications and frameworks such as:
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More insight into customer needs
D2C companies will get more insight into their customer needs, and measure the success of marketing campaigns better than traditional sales channels. The best thing is that you are as brand getting feedback from consumers about your product right after they have bought or used it. Organizing a good online customer service is the most important 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.