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What is DTC? How Selling Direct-to-Consumer Can Benefit Your Brand

Oct 28, 2022
What is DTC? How Selling Direct-to-Consumer Can Benefit Your Brand

It is projected that by 2024, 22% of the retail sales will be made through eCommerce channels. Considering that, one can clearly understand how far and large the eCommerce industry is growing and influencing retail purchases.


It’s no doubt that retail sales are constantly moving towards online platforms which make it essential for companies to get more connected with their buyers and leave the mediator and third-party channels.


While the trend has been to use mediators and third-party channels for retail sales, it has largely shifted to getting connected directly to customer. The trend is called Direct to Consumer.


Unaware of it?


Well, this article will give you every answer you need. Throughout this article, we will discuss about DTC, how it works, and its benefits. So, let’s get started.


What is DTC?


DTC or Direct to Consumer, as its name suggests is a retail selling model in which a particular brand is single-handedly responsible for manufacturing, producing, and delivering the products directly to the customers.


As such, whenever a retail brand working on DTC model gets an order, they start working on manufacturing and packaging and have complete control over delivery.


With all processes under their single window, such brands have a more successful chance of interacting with customers and building personal relationships with them which turn out to be fruitful for future business decisions and plans.


How the DTC Model Works?


88% of consumers prefer to directly buy products from brands. This is what the DTC business model plays at.


As explained above, DTC means making sales directly to the consumers. Therefore the model works in the manner that  the manufacturer directly advertises the products and consumers purchase directly from the manufacturer. So, the retail sale flow in the DTC model becomers - Manufacturer -> Advertising -> Consumer thereby eliminating all the mediators and third-party sellers.


The major benefit here is that the profits are maximized due to the elimination of the need to pay commissions. Another advantage is that the brands get more personally connected with their consumers.


Why DTC is so Important for Your Brand?


75.5% of the DTC sales will be bagged by established DTC brands in 2022. Would you not want to be a part of this 75.5% of the sales? Well, of course you want to which is why it’s essential that you start taking DTC seriously and start establishing your brand within this business model.


Hereinbelow are all the reasons that DTC is important for your brand.


Changing Consumer Expectations


54% of the consumers say that their expectations from customer service are higher than just a year before.


This means that consumers always look for better from brands. If you’re not fulfilling consumer expectations or not providing them good experience, you can say goodbye to them as they will quickly move on to the competitors.


Personalisation is what sells in today’s market and it comes only when you’re directly dealing with your customers. DTC model engages the consumer directly with you and they don’t come to your brand after passing through several other brands as it happens in traditional retail stores where you’re selling through middlemen.


So, with the changing customer expectations for personalization, you need to provide those experiences to the customers and DTC model will be a cornerstone in helping with the same.


You Have Better Earning Potential in Online Sales


The pandemic led to a 27.6% increase in the online sales and it is still the trend. So, retail stores hardly matter because consumers are still on the online first approach. Given that, brands will have a better earning potential when they come up with their own eCommerce stores and this has even been proven by brands like Pepsi which has its exclusive online stores to sell its products.


Having exclusive online stores that the consumers can directly access will also mean that you have cut through the competition and that the consumers favor your brand among others.


Build Better Customer Relationships


It’s no question that you need to have amazing relationships with customers to retain them and keep them loyal to your brand. This will happen only when you personally engae with the customers.


Selling through a DTC model allows you to communicate with your customer at every touchpoint of the buyer’s journey. Thus, you are able to better understand the customers and will deliver the products based on their specific needs. This will strengthen your relationship with your consumers and make you cut through the competition.


Absolute Control Over Your Brand


When you’re working on a DTC model, you’re done away with dealing with third-party sellers and mediators. You’re the sole worker for your brand and all the manufacturing, management, marketing, advertising, distribution, and delivery is upon you. So, you have absolute control over your brand and you can take it to great heights all by yourself without any interference of others.


How to Get Started With Direct to Consumer Selling?


Now that you know how great DTC is for your brand, you don’t want to delay switching to this selling model. However, the question is how do you get started with it?


Well, some strategies can help.


Create Your Store and Update Products with Detailed Descriptions


When you’re entering into DTC selling, you’re all by yourself. All the operations are to be managed by you alone and the first step to it will be looking through your marketing plans. You need to let your products reach your consumers which is why the first step will be to create your store and update all your products on it with detailed product descriptions so that the consumers have a platform to access and order your products.


Come Up With A Marketing Plan


The most essential element in DTC selling is marketing your products. The better your marketing and advertising plan, the more you sell, and higher your profits. So, it’s essential that you come up with a marketing plan. Study the consumer behaviour, understand what they’re looking for, and market your products accordingly based on consumer demand.


Find the Channels for Distribution


Distribution will also be in your hands. So, it’s essential that you find the correct channels for distribution so that you can make deliveries of the products on time. The best idea is to tie up with a shipping and delivery partner. All you will have to do here would be pay the shipping charges and your work will flow smoothly.


Are You Ready to Start DTC Selling for Your Brand?


So, that was all about DTC selling. It’s a great way to grow your brand independently. All you need to know is the right strategy to get started with it.


We hope this article gave you the insights that you needed and that you’re all set to start DTC selling for your brand.


She is a content marketing specialist who thinks it's kind of fun creating content marketing strategies for SaaS businesses. In her free time, she likes spending time watching Netflix.

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