Traditionally, small businesses needed distributors like supermarkets and retail outlets to reach out to people with the products they were offering. This means sharing of profit with that outlet or supermarket. The only means for direct selling from manufacturer to customers was unorganized door-to-door selling, which became outdated, and very little useful in understanding the target market and customer’s needs. However, after the advent of the internet in the 1990s, it became easier for Direct-to-consumer companies to reach out to customers via e-commerce platforms coming to the fore.
Direct-to-Consumer (D2C) Retail, as the name suggests is selling products directly to the consumers eliminating the middlemen and thus reducing the cost. D2C companies build their brands through offering around direct digital marketing channels as opposed to selling through an online marketplace, retailer, or auction site.
They produce their products in their facility and distribute using their channels bypassing any third-party retailers. Under D2C model, seller or manufacturers willing to sell his products directly to their customers makes their online website cum store, or promote their products on various other social media platforms.
With Direct-to-Consumer retail, one can increase their sales; as more and more customers will find it convenient and reliable to buy the products from the manufacturer. Establishing a direct relationship with customers will also help the manufacturer understand customer’s needs.
Also, there is no lack of space on an online website unlike a physical store with a lack of space and inventory finishing. Hence, the manufacturer can offer a wide range of goods to its consumers with effective prices as it also eliminates the middlemen and their profit sharing.