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Ecommerce glossary > Direct-to-consumer

Direct-to-consumer

What is direct-to-consumer (DTC)?

Direct-to-consumer (DTC or D2C) is a ecommerce business model where products or services are sold directly to end customers, without the use of third-party retailers or wholesalers. This model allows direct-to-consumer brands more control and customization over the customer journey, creating a more seamless customer experience. 

Benefits of the DTC business model for brands and customers

By eliminating the middlemen, DTC companies can both optimize the customer experience and boost profit margins, maximizing customer lifetime value. With more control over the consumer journey and overall purchasing experience, your brand can offer customers flexibility in the form of cross-sells and upsells, and use strategies like A/B testing to determine optimal pricing for your customer base. DTC businesses also have full control over their branding, allowing them to properly set customer expectations on product detail pages and across their sites.