D2C stands for Direct to Consumer, wherein orders are fulfilled and shipped directly to the consumer. It is an eCommerce model in which traditional B2B businesses or manufacturers sell directly to end consumers through an eCommerce website. D2C is becoming a popular and easier route for manufacturers to enter the market directly.
What makes it popular across different industries is that it gives power to the manufacturing companies to connect or engage directly with the end customers without relying on the middlemen or third-party retailers to get exposure to their products.
Benefits of the D2C eCommerce model:
- Eliminates the barrier between the manufacturer and the consumer
- High-profit margins
- Overall control of brand positioning, customer service, and customer experience
- Direct access to customer data such as buyer behavior
- More conversions with authentic and personalized experiences
- High customer satisfaction and customer retention rate
In the D2C eCommerce model, businesses wear multiple hats wherein they take complete charge of marketing, distribution, sales, and the customer experience, in addition to product manufacturing. It helps the brand smoothen the otherwise complex value chain by eliminating the middlemen and directly reaching out to the potential customers, and taking complete ownership of the brand experience delivered.