What is D2C (direct-to-consumer)?
D2C (direct-to-consumer; also written DTC) is an ecommerce business model where a merchant produces their own products or services and sells them directly to consumers. This differs from other business models, where third-party retailers or wholesalers can be used. Because businesses have a direct line to customers with the D2C model, direct-to-consumer brands typically have more control over their customer journey than traditional retailers, resulting in a more seamless and cohesive customer experience. Today, the D2C model is becoming increasingly popular among online stores looking to boost brand loyalty and customer retention.
Advantages for direct-to-consumer brands
With this business model, D2C brands have full control over the customer experience, including brand positioning, brand identity, product design, digital marketing, supply chain and shipping logistics, and more. What’s more, they also have direct access to customer data and feedback, allowing them to more effectively track product performance, customer satisfaction, and key metrics over time. Because of this, D2C brands have the potential to deliver a superior customer experience to traditional brands, as they have control over their entire process and can easily shift and adjust their offerings to suit their target audience.