{"id":15101,"date":"2021-08-11T16:47:55","date_gmt":"2021-08-11T21:47:55","guid":{"rendered":"https:\/\/www.invespcro.com\/blog\/?p=15101"},"modified":"2026-01-20T02:16:29","modified_gmt":"2026-01-20T02:16:29","slug":"5-benefits-of-selling-direct-to-consumer-dtc-d2c","status":"publish","type":"post","link":"https:\/\/www.invespcro.com\/blog\/5-benefits-of-selling-direct-to-consumer-dtc-d2c\/","title":{"rendered":"5 Benefits of Selling Direct to Consumer (DTC, D2C)\u00a0"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><span data-preserver-spaces=\"true\">In the past few years, there has been a significant shift in the world of retail.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Commerce, as we knew it 10 years ago, is different from what we are seeing today.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">If you&#8217;re as observant as we are, you probably noticed that many brands have been changing their business models.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Going from the traditional retail sales model to direct to consumer (DTC or D2C). Many theories explain why this change has occurred.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Some experts say brands are switching to DTC because they want to maximize their profits.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Others say it&#8217;s the internet that has eradicated the need for middlemen.\u00a0<\/span><!--more--><\/p>\n<p><span data-preserver-spaces=\"true\">And some even say it&#8217;s because manufacturers want to take full control of their product, <a href=\"https:\/\/www.invespcro.com\/blog\/staying-on-brand-with-discounts-and-promotions\/\">brand<\/a>, messaging, customers, reputations, etc.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">If you think about it, they are all right in their own regard.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Now that you have a brief idea of why brands are going DTC, in this article, we will look at what is direct consumer model is, how it works, and the benefits of the DTC model.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">What is direct to consumer, and how does the DTC model works<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Direct to consumer is exactly what it is, selling directly to end customers. The strategy behind this approach is that it bypasses wholesalers and retailers, thus cutting out unnecessary costs associated with having intermediaries between manufacturers and the consumer.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This approach is actually a direct reversal of the traditional way companies have marketed their products through retailers instead of consumers. <\/span><span data-preserver-spaces=\"true\">With the DTC model, the goal is to lower costs and maximize profits by eliminating retailers&#8217; sales commissions and display space charges. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The direct-to-consumer strategy necessarily makes some crucial changes in how marketers use advertising messages.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">DTC marketing involves targeting messages specifically to people who are most likely to want to buy the product or service being offered. This usually involves tracking customer preferences over time (through e-mail, for instance) to determine what information will most likely convince the customer to make a purchase.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Direct response marketing campaigns involve monitoring responses via direct channels to measure how well the campaign is performing. The traditional form of direct response measurement was through coupon redemptions. If a percentage of people who received coupons redeemed them at retail locations or via direct mail, this would indicate that the campaign did its job effectively enough to earn repeat purchases from customers.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Over the past two to three years, the DTC approach has been growing in popularity because it allows manufacturers to have 100% control over:\u00a0<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">How they establish and build relationships with their customers.\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The messaging of their products.\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Who they want their customers to be.\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">How they deliver value to their customers.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Pricing flexibility.\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">First-party data and analytics.\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">And besides empowering manufacturers, here are a few stats that also shows why this model has been gaining popularity lately:\u00a0<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">More than 50% of consumers opt to visit brand websites (rather than retailer websites) because they offer more comprehensive information and guide.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">78% of DTC brands increased their marketing budget compared to 60% of traditional retailers.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">40% of consumers expect that more than 40% of their spending will go toward direct-to-consumer brands in the next five years.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">55% of consumers prefer to buy directly from brands rather than multi-brand retailers.<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">ALSO READ:\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.invespcro.com\/blog\/direct-to-consumer-brands\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-preserver-spaces=\"true\">The Rise of Direct to Consumer DTC Brands \u2013 Statistics and Trends<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Power of a direct-to-consumer model<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The direct-to-consumer ecommerce model is not a new concept, but it has been gaining steam in the last few years. The<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Suppose you really want to know how powerful the direct-to-consumer model is. In that case, you don&#8217;t look at the first generation of DTC brands like Casper, Warby Parker, or Everlane (even though they are thriving businesses).<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But, the only way to determine the power of the DTC approach is to look at who benefits from it. You&#8217;d be forgiven for assuming that the direct-to-consumer model only helps manufacturers.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But you&#8217;d be wrong.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In many ways, the direct-to-consumer model is as rewarding to customers as it is to manufacturers.\u00a0<\/span><\/p>\n<p>ALSO READ: <a href=\"https:\/\/www.invespcro.com\/blog\/what-causes-dtc-ecommerce-brands-to-fail\/\">What Causes DTC Brands To Fail<\/a><\/p>\n<h2><span data-preserver-spaces=\"true\">Benefits of selling directly to consumers<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Now that you know that selling directly to consumers can benefit both the consumers and the manufacturers, now let&#8217;s take a close look at how this model benefits both parties involved:\u00a0<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">1. Higher Customer Lifetime Value<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">The customer&#8217;s value during their relationship with your brand is known as the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.invespcro.com\/blog\/the-importance-of-customer-lifetime-value-in-ecommerce\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-preserver-spaces=\"true\">customer lifetime value<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0(CLV). A high CLV is a reflection of good profits. And good profits are a sign of a healthy business.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">When you have more middlemen, your CLV is bound to be lower simply because your intermediaries take a slice of your profit.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For instance, let&#8217;s say you are selling sneakers, and you are using the traditional retailer model, you will be forced to sell the sneakers at a lower price so that the middlemen (in this case, wholesalers and retailers) will have to mark it up again and resell them to customers.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But if you were to sell those sneakers directly to customers, you would have total control over your margins, thus driving the CLV.\u00a0<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">2. Better relationship with customers\u00a0<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">It&#8217;s an open secret that you must establish and maintain a good relationship with your customers if you want to get and retain them.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">One way of building and maintaining that relationship is by contacting your customers directly through every touchpoint with your brand during their buyer journey. These types of interactions are difficult to foster if you are selling your products through middlemen.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In other words, when you depend on intermediaries to sell your products, you are missing out on valuable data that can be used to drive your marketing efforts.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Let&#8217;s go back to that sneaker example and assume that you sell the product through wholesalers and retailers. The kind of data you will get from these retailers who are selling your sneakers is quite basic.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Any consumer data that doesn&#8217;t allow you to collect customer experience data, analyze customer buying behavior, understand customer purchase decision hierarchy is quite basic.\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But if you were to be selling the sneakers on your website, you will also have the opportunity to launch surveys, session recordings, heat maps, and even <a href=\"https:\/\/www.invespcro.com\/ab-testing\/\">A\/B tests to understand your customers better<\/a>. And finally, you have the flexibility to cross-sell and upsell to increase your revenue.\u00a0<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">3. Consumers Prefer Buying Direct<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Now that product manufacturers are more accessible than previously \u2013 thanks to the internet \u2013 individual consumers prefer dealing with them than retailers.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This is not something I&#8217;m making up. It&#8217;s research-backed.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to a study conducted by\u00a0<\/span><span data-preserver-spaces=\"true\">Brandshop<\/span><span data-preserver-spaces=\"true\">: 88% of consumers prefer buying directly from the manufacturer if given the option.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The benefits of buying directly from a product manufacturer outweigh the pros of purchasing from a retailer. If you think about it, who wouldn&#8217;t want to buy a product from a person who knows and understands every detail and feature of that product?\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Customers prefer purchasing directly from the manufacturer because they want to chat directly with the brand&#8217;s support team \u2013on the brand&#8217;s <a href=\"https:\/\/www.invespcro.com\/ecommerce-cro-services\/\">ecommerce website<\/a> \u2013 and get the best advice on whatever questions they may have.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The benefits of buying from a manufacturer include expert service, better deals on warranties, lower prices, and customization of products to suit customers&#8217; exact needs.\u00a0<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">4. Control over messaging, brand. data and reputation<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">If anything, control is one word that&#8217;s causing many brands to adopt the DTC model. Control over pricing, customer data, messaging, product, brand, and reputation.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">We live in a world where customers are more demanding than ever. You have to provide them with a high-quality experience on whatever channel they decide to reach out through.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">So, if you don&#8217;t have total control over every touchpoint that your customers have with your brand, you are somehow shooting yourself in the foot.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The power of manufacturers in a legacy retail model is so limited. Manufacturers don&#8217;t even have complete control over the pricing.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Once the product hits the shelves, there&#8217;s little to nothing they can do to influence the sale. At this point, all the power is in the hands of the wholesalers and retailers.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The only way they might influence the sale is to splash more cash on advertising, but if the retailers struggle to sell the products, manufacturers are bound to incur a loss.\u00a0<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">5. Omnichannel commerce<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Omnichannel commerce is a multichannel approach to sales that aims to provide a unified customer experience regardless of where the customers are shopping.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to Harvard Business Review,\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/hbr.org\/2017\/01\/a-study-of-46000-shoppers-shows-that-omnichannel-retailing-works\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-preserver-spaces=\"true\">73%<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0of all customers use multiple channels during their purchase journey. And according to UC Today,\u00a0<\/span><span data-preserver-spaces=\"true\">90%<\/span><span data-preserver-spaces=\"true\">\u00a0of customers want an omnichannel experience that has seamless service between communication services.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As you can see from the above stats, omnichannel commerce is fast becoming the norm that customers expect wherever they go. To be blunt, not having a unified experience will cost you sales and make you lose customers for good.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">To create a unified customer experience, you&#8217;d need to have access to every touchpoint your customers have with your brand during the sales process. However, full access to every touchpoint that a customer has with your brand is hard, if not impossible, for manufacturers to have in a traditional sales model.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As mentioned earlier, the traditional retail model limits the manufacturer&#8217;s flexibility by creating a wall between the customers and the manufacturer, making it hard for the consumer to interact with a manufacturer naturally.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Conclusion: DTC is not for everyone<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">There&#8217;s no denying that the DTC ecommerce model is here to stay. But is it for every e-commerce company? No. Just because the industry has a low barrier to entry doesn&#8217;t mean that everyone and anyone can switch to this strategy on a whim. The DTC model is so demanding. It would be a mistake to dive into it without having the marketing, sales, tech, operations, and data analysis skillset.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>In the past few years, there has been a significant shift in the world of retail. Commerce, as we knew it 10 years ago, is different from what we are seeing today.\u00a0 If you&#8217;re as observant as we are, you probably noticed that many brands have been changing their business models.\u00a0 Going from the traditional [&hellip;]<\/p>\n","protected":false},"author":54,"featured_media":15102,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-15101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce"],"_links":{"self":[{"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/posts\/15101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/users\/54"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/comments?post=15101"}],"version-history":[{"count":1,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/posts\/15101\/revisions"}],"predecessor-version":[{"id":100532,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/posts\/15101\/revisions\/100532"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/media\/15102"}],"wp:attachment":[{"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/media?parent=15101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/categories?post=15101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/tags?post=15101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}