Questions Manufacturers Should Ask Before Selling Direct-To-Consumer

Questions Manufacturers Should Ask Before Selling Direct-To-Consumer

In this new digital world, every retailer competes for consumer attention. Going direct to consumer is getting fame these days. Many retailers found that a direct-to-consumer (D2C) sales channel provides a new revenue stream, a well-organized brand experience to the customer from product discovery to purchase and also helps to get a better insight on customer behaviour.

By differentiating on experience and focusing on specific markets, your retail partners gain and keep their share. Many modern companies can’t quickly and efficiently adopt a DTC model as they face several common challenges in the digital age. So, it’s essential to think through your strategy before you launch while going direct-to-consumer (D2C). In contrast, it is also true that you can offer your customers a great experience and avoids specific disruptions in the D2C sales channel. If you are thinking of launching your DTC eCommerce project, you must be careful in planning the shift.

Let’s know a bit more about the direct-to sale.

A Brief Overview of Direct to Consumer

Direct to consumer cuts the middleman theory. It helps retailers to sell their products directly to end consumers by harnessing the power of the cloud. It provides the features like pricing flexibility, ship directly to consumers, communicating directly with consumers utilizing CRM Software etc. 

Why D2C and why now?

Consumer goods retailers saw a 91% increase in online sales early in the pandemic. Only by filling shelves at retailers and airing national TV campaigns alone, Consumer Packaged Goods can no longer compete. So, retailers want to be more customer-centric and inclined to gather more consumer insight as consumers’ buying patterns change. After the strike of Covid -19 pandemic, digital reliance for brand engagement grows and there is a quick acceleration and adoption of new consumer behaviours. Retailers behaviour sight on customers’ behaviour – the key to creating an engaging brand experience by adopting a DTC model. Whereas with a trend toward new native DTC brands gaining hold of more market share, consumers also alter what they were buying. 

Switching to Direct-to-customer

The retail space is becoming more and more crowded, with competition increasing and potentially hundreds of brands per category. Moving to a D2C model could be a great idea if you’re looking for new ways to reach your existing customers and patterns to reach new customers. Companies need a relentless focus on product development, distribution, and ultimately, their customers’ lifetime value.  

You might be wondering if it’s worth it to switch to a new model. And it’s a good question because without having all of your stakeholders on board, you certainly can’t make the change on a whim or decide to do it. It’s a significant shift in strategy for any business, so before shifting to D2C to boost your revenue, you should know the answer to few questions.

About ETG Digital

ETG is a Salesforce Strategic partner. Headquartered in Plano, Texas, ETG is ISO 9001:2015 certified company with a global delivery center in Hyderabad, India. We have a dedicated team serving the business worldwide from multiple locations in the US, Canada, UAE, UK, Australia, and India. Over the last two decades, we have been dedicated to customer success through leveraging emerging technologies. We provide customized and tailor-made solutions for retailers starting their eCommerce journey.

Drop us a note info@etggs.com to start your digital transformation journey.