Compared to the rest of the market, growth leaders are 19% more inclined to take control of the end-to-end customer experience by manufacturing and selling their own product lines, a burgeoning business model known as direct-to-consumer (DTC) e-commerce. DTC brands are revolutionizing the retail industry by disrupting traditional supply chains.
To clarify, the “direct to consumer” term means you are selling your product directly to your end customers without third-party retailers, wholesalers, or other middlemen.
The Benefits of DTC e-commerce
Own your customer relationship
Whether you’re a manufacturer starting to sell direct to customers, a retailer launching your own branded line, or a start-up creating unique items for a niche market, the DTC model allows you to forge a more direct relationship with your customers, from end-to-end. That’s a powerful opportunity to seize.
Differentiate your offering
In today’s highly competitive and rapidly evolving global e-commerce market, it can be very difficult for growing e-merchants to compete on selection or price. They can, however, stand out and compete successfully with even the most established players by manufacturing and selling something that is completely unique.
Drive brand loyalty
Because DTC brands have full ownership over their products, they’re in a better position to enforce quality. Businesses that consistently deliver high-quality products and experiences are rewarded with customer loyalty.
Increase your margins
Depending on your business model and cost structure, manufacturing your own products can allow you to retain revenue that would otherwise go to suppliers.
The DTC model is not a guarantee for success, of course. You need to be able to create a product that customers will want to buy; that will reinforce the quality of your brand; and that you can afford to make.
This is in addition to providing customers with a good online shopping experience that meets consumer expectations; and provides delivery options and information upfront, through to a positive customer receiving experience. It takes time and resources – but also commitment and ingenuity.
For more insights from Canada’s fastest-growing retailers, download the e-book by Canada Post.