D2C (Direct-to-Consumer)

In a nutshell: What is D2C?

D2C stands for direct-to-consumer. This means that manufacturers or producers sell their products directly to end consumers. It is therefore also referred to as direct selling.

D2C is a strategy that enables manufacturers to have direct control over business relationships with customers. The route via an intermediary is bypassed, resulting in a variety of advantages.

Definition of D2C (direct-to-consumer): What does direct-to-consumer mean?

When a traditional B2B company starts selling its products directly to the end customer, this is known as D2C.

This means that the manufacturer is in direct contact with the consumer. A middleman is therefore not necessary.

D2C is often chosen as an e-commerce strategy when companies want to have a direct business relationship with their end customers. In this way, they receive information that is otherwise reserved for the retailer.

D2C is rendered as both direct-to-consumer and direct-to-customer. Both terms have the same meaning.

D2C vs. B2C: What's the difference?

There are various sales channels - from B2B to B2C to D2C. But what is the difference between B2C and D2C? B2C stands for business-to-consumer.

The term therefore refers to the sale of products and services to end consumers.

This usually involves an intermediary. Although the product is intended for private customers in the B2C sector, it is not sold directly by the manufacturer to the end consumer.

D2C brands therefore leave out an intermediate step. Incidentally, there are many customer acquisition methods for the B2C and B2B sectors.

How does direct-to-consumer marketing work?

A classic example of D2C is direct sales via e-commerce platforms such as Amazon or an in-house store system.

The manufacturer has the option of selling directly to the end consumer, but is also responsible for sales, marketing and customer relationship management (CRM).

D2C therefore not only offers advantages, but is also accompanied by a number of changes.

Advantages & disadvantages of Direct-to-Consumer (D2C)

Many companies do not find it easy to offer D2C distribution. After all, they have relied on intermediaries for many years, which is common practice in most industries.

The retailer has therefore taken over many tasks. In addition to certain start-up difficulties, direct sales offer many advantages.

Independence: Companies and brands gain more independence and take back some control. This is not just about pricing, but also about the image and appearance of the brand.
Customer loyalty: A direct customer relationship can increase customer loyalty.
Market research: Direct selling makes it possible to collect data. Information about the customer journey allows conclusions to be drawn about consumer behavior, and extensive market research becomes possible.
Increased sales: Analyses make it possible to identify cross-selling and upselling potential. This allows companies not only to test new innovations and products, but also to increase their sales.
Potential for improvement: Direct customer feedback can help to uncover potential for improvement and optimize your own services.
Competition: D2C is seen as an excellent way to remain competitive and stay one step ahead of the competition.
OmnichannelCompanies can offer their customers an omnichannel experience. This means that they have everything in their own hands, from marketing to packaging and delivery.

For whom is D2C worthwhile?

The numerous advantages show: D2C can bring great benefits to companies. Therefore, you should not shy away from giving this type of sales a chance.

In principle, D2C is worthwhile for any company that is prepared to take on certain tasks relating to customer care. Experts advise every B2C company to operate D2C to some extent or at least to start with it.

Nevertheless, D2C is not always suitable. This is highly dependent on the product and the industry.

If an item can be easily stored and shipped, is frequently repurchased and has a certain shelf life, then D2C is very practical. Products that do not meet these criteria can make it difficult to get started with D2C .

In a free SEO strategy consultation, we uncover untapped potential and develop a strategy to make you more successful on Google.

Why is D2C becoming more and more popular?

More and more companies want to gain deeper insights into the customer journey of their customers. Among other things, this is important as it is the only way to identify changes to which you should react in order to adapt your offering to current requirements .

Personal data and data on target group engagement are particularly relevant for companies.

But user behavior also plays a role: How does a customer reach the online store and in what order do they click on the products?

This allows offers to be designed in a much more targeted way, which can make the company more efficient and successful. The future of a company often depends on it.

How do you get started with D2C?

Companies that have previously sold products and services via an intermediary and want to switch to direct-to-consumer marketing are faced with many questions. So what is the best way to start D2C?

We recommend methods that only involve low investment costs and little effort. Well-known marketplaces, including Amazon and eBay, are ideal for this.

Only in the next step should you consider setting up your own online store. Although this offers significantly more possibilities, it also involves higher investment costs and more effort.

A sophisticated e-commerce strategy is needed to make selling products in your own store worthwhile.

The right tools for getting started with D2C

If you want to start with D2C (Direct-to-Consumer), you should not be afraid to use appropriate tools tools. In any case, direct sales means that a new technical infrastructure is required.

Many companies initially only focus on the front end (i.e. their online store). However, payment solutions, customer relationship management systems and project management tools are also in demand.

This is the only way to set up D2C projects, coordinate processes and collect and process customer data.

Start D2C: Step by step to success

To help you get started with D2C (Direct-to-Consumer), we have a few tips for you.

They form the basis for a successful entry into direct sales and show which aspects you should definitely consider.

Choose the right platform: There are many e-commerce platforms for budding D2C companies. It is important that your team gets to grips with it well so that competent and professional customer service is possible.
Personalization, order management and logistics: think about how you can successfully implement these areas. Your goal should be to offer your customers the same user experience as in a B2C store.
A good sales team: A good sales team is necessary so that your company can focus on your customers. The human element is indispensable in D2C sales.
Focus on the customer: Your customers should be your absolute focus. This is what characterizes high-quality customer service. This includes, for example, particularly fast delivery or personalized content.
Collect data and use it properly: D2C sales offers you the great advantage of having access to a lot of data. Collect it and use it wisely. Regular analyses allow you to uncover trends and develop new strategies that bring even greater success.