D2C ecommerce solutions to accelerate your earnings and build a meaningful relationship with consumers

D2C ecommerce solutions is on the rise. Recent data have shown that while only 5% of millennials prefer D2C brands over traditional retailers, this grows to a whopping 40% to 46% for Gen Z-ers. Moreover, the COVID-19 pushed eCommerce 5 years ahead of where it would have been and, subsequently, caused many business to hasten their adoption of D2C ecommerce models. In this post today, Arrowhitech will show you the challenges and benefits of D2C selling and some intelligent strategy to increase profits

1. What is D2C ecommerce

D2C ecommerce

D2C e-commerce is when the producer sells its products directly to consumers from their online store. At its very basic level, D2C takes place when a producer sells their product directly to a shopper without using a distributor or retailer. D2C is a suitable choice for business that want to enter the market fast and with a lower entry-level cost. With the outbreak of eCommerce, more and more brands are seeing the opportunity to remove the middleman and sell directly to their customers. Indeed, D2C ecommerce is the future. Especially if there is a constant disruption happening across supply chains. More producer will turn to D2C e-commerce to sell to end-consumers directly.

More reference: Powerful ecommerce solutions for the electronics industry to accelerate your business growth

Benefits of D2C e-commerce

An omnichannel experience

A huge advantages of having a D2C e-commerce solution is that producers get full control of all their activities, from packaging to marketing. In that way. They can also generate an omnichannel experience for their end shoppers. 

More control over brand reputation

With a traditional retailer business model, a producer has little control when their goods are being sold by retailers. In while, a D2C e-commerce solution offers a producer the control over its marketing efforts and sales strategies. Also, this solution allows the company directly in contact with the end-consumer. D2C ecommerce solution also give the producers a total control of its shopping experience from the research phase to purchase.

Truly understanding your consumers

Producers who have a traditional retailer business model rarely interact with the shoppers who have bought their products. So, they don’t have many chances to get to know their end-consumers, other than by conducting target market research to try to achieve a better understanding of their likes and dislikes.

Challenges of D2C e-commerce

Competing with retailers

With a D2C e-commerce solution, the biggest challenge for producers are having to compete with retailers. Retailers already have experience in selling to customers and a deep understanding of their customers and the retail market.

Order fulfillment

Newly formed D2C ecommerce business often struggle with order fulfillment. Not only does a producer have to delivery their products, but they also need to compete with Amazon and many other online retailers with next-day shipping.

Marketing, sales and customer service

D2C e-commerce also means that producer need to start looking after their marketing strategies and sales strategies. This often ask hiring a new team.

2. What should you look for in a D2C e-commerce solution?

D2C ecommerce

Turning to D2C ecommerce can have enormous advantages for your business and your shoppers. While there are various types of e-commerce solutions and providers on the market, you need to look for an D2C ecommerce solution that will prioritize your D2C requirements accordingly. Selling D2C requires an e-commerce solution that will:

  • Make purchasing pain-free, easy and reliable for shoppers
  • Support accurate and reliable data for both your organization and customers
  • Assist you to stay agile and scalable, so you can continuously grow alongside changing market needs

Things to consider when going D2C

There’s a lot that goes into selling direct-to-consumers (D2C) ecommerce business, and whether you’re all-in or you’re still thinking about switching to the popular sales model. There are some crucial factor that you consider what it takes to pull it off.

Reason why customers should to purchase from you directly

Why should your customers purchase from your online store, when they can just use Amazon? It’s a difficult question — but it needs an answer, especially when you consider that just 2 percent of online shoppers in the US purchase from a producer’s website. Moreover, you need to think about is how you can get shoppers to shop at your online store without damaging relations with your existing retail partners. In other words, how can you prevent channel conflict?

The effective solution to solve this issue is to get creative. Ask yourself what you could provide that your current retail partners can’t? One answer that comes to my mind is using personalization. For example, Nike’s D2C ecommerce website enables their shoppers to purchase a pair of customized running shoes with their name on it — something you can’t do in Foot Locker.

Furthermore, other solution that can help you prevent channel conflict and provide your customers a reason to purchase from your D2C ecommerce website is to offer things such as unique pricing, subscription services, and loyalty rewards.

Volume you need to sell via D2C online store

Some brand exclusively sell D2C. But a lot of producers don’t. Whatever your plan, ensure that you actually set measurable goals and objectives, document them. This will likely includes a major restructuring of your companies and a costly investment, so it’s very important for you to take the time to think through all the solution it will impact your business and whether or not it will be worth the cost.

You absolutely need to build a profit and loss statement, decide what percentage of sales D2C ecommerce solution has to account for, and see how its profitability would compare to sales through retailers.

A robust infrastructure

When you choose to sell D2C, you will be responsible for marketing and selling your goods. Besides, you’re responsible for fulfilling and shipping directly to your consumers. For large business that are able to support fulfilment and delivery, then D2C is an effective solution for them.

But for bushiness that don’t have the ability to fulfil orders on their own, then it might be worth partnering with a third-party fulfilment provider such as Amazon fulfilment, who can make sure your customers to have fast and reliable shipping service.

Invest in your ecommerce platform

Since you’re in charge of the shopping experience, you need to invest time and money to ensure every piece of every transaction goes smoothly, from checkout to delivery. That means you need to add the popular features such as:

  • Guest checkout
  • Saved payment methods
  • Integration with digital wallets like Apple Pay, PayPal, and Amazon Pay
  • Subscriptions
  • Alerts when products are available again
  • Payment plans
  • Loyalty Programs
  • Order History

You also need to offer automated transactional emails with tracking numbers and other information your shoppers want after making a purchase.  If you are ready to launch a D2C ecommerce website successfully. Then, contact ArrowHitech to take your business to new heights. We are a leading e-commerce solutions provider, covers all the website development needs of online entrepreneurs.

With vast experience working with numerous platforms like Shopify, Magento, WooCommerce,etc , we achieve a full, thorough insight into different types of platforms. Then, we will give the most suitable and optimal advice and D2C e-commerce solutions to uplift any business of yours concerning traffic, revenue or profits. Let’s chat.

Understand your customer’s preferred shopping experience

To start a successful at D2C ecommerce, you need to be familiar with broad trends and data about customers behavior, as well as how your shoppers specifically behave. If you’re going to improve the shopping experience, you’d better have a stable grasp of what your shoppers need in a shopping experience, as well as how any adjustment could interfere with that experience.

For instance, a high percentage of shoppers use buy-online, pick-up-in-store (BOPIS) or click-and-collect. Furthermore, the numerous majority of producers simply can’t deliver this kind of experience. If you sell nationwide and don’t have thousands of brick-and-mortar store, your shoppers can only take benefits of BOPIS through a retailer.

Offer competitive pricing

Price is one of the biggest element that customers to determine where to purchase or not. Many business often set their own pricing depended on the producer’s suggested retail price (MSRP) in order to anchor the value of their goods. However, the retailers often fluctuate their prices between the MSRP and your pricing policy. And if they have a better price option than you, they’re probably become to win a greater percentage of sales.

D2C sales often require producer to make such a large upfront investment in infrastructure, development, and staff. There are various inputs that affect business’s pricing products lower and this varies from org to org, but if you want to compete with retailers, you’ll need to experiment with coupons, discount codes, and other strategy to offer a better price. 

Ensure the resources and expertise you need

D2C ecommerce sales isn’t something you can just tack onto retail sales, and managing it isn’t a task you can just include to your team’s current responsibilities. It completely changes your business’s operations , because you have to start thinking and working like a retailer. 

If you don’t currently have the expertise to manage D2C sales, you’ll either need to train your staff in completely new skills or hire new teams possibly entirely new departments to solve your business’ new responsibilities. Taking retailers out of the equation means your business needs to process transactions, facilitate delivery and returns, deal with account management, optimize the checkout experience, and more. 

Executing any of these areas poorly can cripple your ability to sell D2C and have widespread consequences for your business .