What is D2C Business
D2C ( Direct to Consumer) business model is a manufacturer or company that sells directly to consumers or end customers, which is different from the traditional or retail business model. The traditional or retail business model or sales chain is from company to wholesaler to distributor to retailer to consumer or end customer.
Mainly without a third party, you can sell your product without giving any profit percentage, and your end consumer or customer will get the low-priced product.
The D2C model is especially used in eCommerce, eCommerce sites can be launched with the help of any delivery partner, e.g DTDC, FedEx, DHL, Ecom Express, etc.
5 Brands are in the D2C business model- Nike, Boat Lifestyle, Pepperfry, Bewakoof, and Leskart.
Advantages of the D2C Business Model-
Customers Data-
Brands that operate on the D2C business model, they are know more about the customers, what products the customers want and when, and what is their age group, etc.
Because there is no middleman, they get direct reviews about the product, so they can know more about the customer and can easily make the product better.
Omnichannel-
While the D2C business model works perfectly on eCommerce platforms, many brands open offline stores. It’s called Omnichannel.
Brand Value –
If any customer has product-related issues or complaints, then they can talk to the company directly or complain. If their problem is solved easily then the brand value will be created.
Low Investment-
Direct target customers can be targeted by digital marketing of the D2C business model. And they can buy easily with one click. D2C marketing only to target pacific customers costs much less.
It is not possible in retail or traditional business models, they think of buying when they see an ad, but when they go to the store, they forget to buy.
Disadvantages Of the D2C Business Model
Shipping
Every new D2C eCommerce business faces the shipping problem the most, customers can easily buy from retail stores or big giant eCommerce platforms like Amazon offer one-day delivery. But new e-commerce sites take 3 to 4 days for shipping and delivery.
Conclusion
If you want to start a D2C model business, you need to start in the eCommerce industry, then you can open offline stores also by understanding your customer.
To start D2C you need to be a manufacturer, or you can make products based on your customers from any manufacturer.