What is D2C eCommerce?

In the past, B2B companies sold exclusively to one target audience: the business market. Over the years, technology has improved and distances have become shorter. Consequently, we can now explore more than one traditional route: it becomes easier to bypass intermediaries. Increasingly, B2B companies adopt direct-to-consumer eCommerce. Direct-to-consumer (D2C or DTC) means the direct sale from the (brand) manufacturer to the consumer, without involving a retailer, wholesaler, or other selling point. Not only does a D2C strategy reduce issues in the supply chain, but it also enhances customer brand loyalty. Additionally, it increases profit margins by eliminating intermediary(ies) from the chain. Sufficient reason to delve into this model.

D2C eliminates traditional routes

eCommerce is moving rapidly. Boundaries blur, and customers can make purchases from anywhere in the world, right from the comfort of their homes or offices. Where wholesalers, distributors, or traders were once part of the process, D2C eCommerce skips these intermediaries. This results in significant savings for both you and the customer. However, don't jump for joy right away; an intermediary may sound unnecessary but may not be. They perform essential tasks to get your product to the customer, such as storage, logistics, marketing, customer service, etc. If you decide to adopt the D2C model, these tasks will also become part of your strategy.

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A pocket-sized eCommerce platform for a pocket-sized product.

Key benefits of D2C eCommerce

It bypasses the intermediary

Intermediaries compete for a share of the profit. As they sell to the end customer, as a B2B company, you are compelled to keep the price low. This impacts the profit margin of the product. If you find a way to take over the tasks of an intermediary, you can charge the same end price as they did. In other words, the profit margin increases.

Improved customer contact through the right data

Working with intermediaries provides minimal feedback. You sell exclusively to that party, and they handle the rest. As a supplier, you receive no information about prices, why a customer buys or doesn't buy something, or the reason for returns. Opting to sell directly to the end customer gives you access to more opportunities. For instance, you can implement cross-selling and upselling, use A/B testing, or analyze returns to enhance your product.

Greater control over brand identity

That brand identity is crucial for customer loyalty, we probably don't need to explain. Selling to an intermediary means gradually relinquishing control over that brand identity. You have no influence on price, promotion, and placement. Selling directly to the end user allows you to experiment with pricing, offer promotions, and determine how to launch and present a product.

Create an omnichannel experience

With a traditional sales strategy, you only produce the products. An intermediary takes care of the rest. With the D2C model, you have more control over all activities: production, packaging, marketing, sales, and much more. This means that you can provide an omnichannel experience that seamlessly aligns with your business.

D2C organizations that are already successfully working with CloudSuite

Reach all target audiences

One size fits all: that would be ideal, wouldn't it? If something became clear in recent years, it was the rapid transformation of eCommerce. We don't know what the future holds and which model suits a company best. Therefore, opt for an eCommerce platform that caters to all target audiences. For example, a platform with a B2B2C model where both B2B and B2C customers can make purchases from the same store. Here, they can buy products in bulk or as individual items. With an eCommerce platform for different target audiences, you can easily manage various shops from one platform.

Integration with third parties

Select a platform that seamlessly and errorlessly integrates with other parties. Consider marketplaces such as Google, Amazon, or Bol.com. Many online buyers initiate their search on a marketplace, making it a crucial channel for brand awareness. A strategy that capitalizes on this leverages these channels as a springboard for the D2C channel.

Implement CloudSuite headless

Customers are influenced and convinced through various channels. For instance, they might see a video advertisement on their TV and then search for your brand on their phone. Later, they may be reminded by an advertisement on Google. Therefore, opt for a platform that can be headlessly implemented. This provides visual flexibility and contributes to a consistent appearance, both online and offline.

The right content tools

Providing only information about the product is no longer enough to persuade customers. They are looking for useful content that adds value and helps them select the right product they are searching for. Think of videos with product details, knowledge articles, and also related products offered through cross-selling. Choose a platform that allows combining product expertise with a product category for increased sales.

How can CloudSuite help your organization?

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More control with D2C eCommerce

Sell your brand directly to the end user