Two out of five Americans have purchased directly from a brand, avoiding middlemen like Amazon and Walmart. Advances in technology, the arrival of new market players and a shift in user preferences, have led to a change in the trend of selling. Nowadays, more and more manufacturers are vesting ways to sell their products and services directly to the end-user. Thus, cutting away distributors, wholesalers, retailers, online departmental stores, marketplaces, etc.
Cube InfoTech engaged as an ecommerce website design company elaborates on the trending Direct to consumer e-commerce business model
How is cutting away the middle chain helpful
To enumerate, companies now see value in removing any middleman like wholesalers and big-box from the sales channel.
By doing this, a business does not need to give away any share of its profit margin.
Secondly, a manufacturer does not have to depend on a long supply chain
Last but not the least, managing your website and supply chain is easier than the efforts one has to take to manage its distribution channels.
What made businesses take the reign to reach their customers
The recent pandemic wreaked havoc in our lives, but from a different perspective, it has taught us some valuable lessons too. A direct supply chain between a business and consumer is a good option in bad times being one of them.
Due to COVID-19, global supply chains and traditional distribution channels came to a halt. Due to this, many manufacturers who depended solely on complex supply chains were left with unsold stock not only in their production units but also with their distributors and wholesalers. Secondly, with restrictions on transport and supply, it was arduous to revive the supply chain. In short, a mess that will take months to channelize and millions of revenue to lose.
The best solution that helped in clearing out the mess was getting an online store. One can get build a website with the help of an E-commerce web design company. Correspondingly, the online store was embedded with the manufacturer’s in-house inventory management system so as to let visitors have real-time stock insights while ordering. Further, the delivery supply chain was remodeled and integrated with the online store. That is to say, that a customer can pick up from a retail outlet or have the items delivered at their doorstep.
An E-commerce web design company shows what a company can benefit from DTC
Take for instance, Molson Coors beverage company. The company faced a deadlock due to a stall in supply and distribution amid the covid havoc. Moreover, the products’ sale points like restaurants and bars too were closed. Due to this reason, the company had a nose dip in sales. In order to revive things, the company tied up with a Toronto website design agency. And had their Direct to customer (DTC) website Ship & Sip running within 10 days. The result was that the company got to skyrocket its sales by 188% month over month. That too when the world economy was crippling down.
Fast forward today, the company is still selling its products through the website. Apart from that, they have additionally tied up with other local retailers & wholesalers like Manitoba Liquor & Lotteries, The Beer Guy, etc.
Direct to Customer E-commerce is here to stay
The rise of digital commerce has made people spend less time in a physical store and more time browsing online. There has been a massive turnaround in shopping behavior since the Covid-19 pandemic. Due to this, it is today crucial for businesses to engage with customers in every possible way.
Direct to Customer (DTC) E-commerce is a safe way to reach out to customers directly. As it allows you to handle your business your way without having to rely on retailers or big-boxes. Moreover, you do not have to share your profits with others.
Cube InfoTech, a Mississauga digital marketing company, believes that just relying on a single business model is an insecure way of doing business. Rather businesses should work on an omnichannel presence to have maximum outreach and customer loyalty for your company. Brands like Nestle, Nike, Heinz, etc. work not only on the DTC model but also continue with retail partnerships.
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