What Is DTC eCommerce? A Definitive Guide For Beginners
Updated on January 21, 2023 in Ecommerce by Nishant Shrimali
What is DTC eCommerce?
DTC eCommerce stands for Direct To Consumer where the manufacturers sell their products online, directly to their customers, eliminating any middlemen such as suppliers, wholesalers, and retailers from the supply chain.
This allows DTC eCommerce brands (sometimes also referred to as a D2C eCommerce) to directly engage with their customers at a cut-off price. With no middlemen between brands and the consumer, eCommerce can provide a much higher discount on their products.
Hence customers prefer this business model as they can get the same product at a much cheaper price than any other retailer might be able to offer.
This shift in customer preference is also visible in their buying behavior.
According to Invesp, almost 1/3 of consumers report that they bought directly from the manufacturer last year. Moreover, 80% to 100% of internet users are expected to buy from DTC eCommerce in the upcoming 5 years.
Why are DTC brands popular?
Here are the 3 common reasons why are DTC brands popular:
Best Price
Unlike other business models (B2B or B2C), Direct To Consumer brands is selling their products directly to their customers. It cut down the cost of the product by a huge margin allowing the brand to offer the best price to its customers.
This price also attracts the customer toward the brands as it is unlikely that any other source (like a retailer or wholesaler) will be able to offer the same products, of the same brands, at the same price.
Trustworthy
When people can buy directly from the brands, it is that the products won’t be a spin-off of the actual product by the brand.
It builds trust when buying products online as the brand will take full responsibility for the quality of the product that they are selling. In the world of online transactions where one can easily be a fraud, this assurance helps it gain popularity among the audience.
Better User Experience
DTC brands are majority time operate only through their websites or app. That means the majority of their time is diverted towards ensuring the best customer experience when a user visits their online store.
In addition to that, all the business operations like manufacturing, packaging, and shipping are under their control. That means not just online user experience, but also the overall buying experience from a DTC eCommerce brand is carefully curated for the satisfaction of the customer.
Are DTC Brands Profitable?
Yes DTC brands are profitable as they usually require fewer resources and hence their cost of selling products and operations is low. According to Metrilo, DTC brands are profitable in their first 12 months.
Is B2C the same as D2C?
B2C stands for Business To Consumer, whereas D2C is Direct To Consumer. Where the B2C business model relies on a retailer selling products to customers, the D2C business model means selling products directly from the manufacturer to the customer.
What are the fastest-growing DTC categories?
Some of the fastest-growing DTC categories are:
- Fashion & Accessories
- Jewellery & Luxury Goods
- Beauty & Cosmetic
What are some popular DTC brands?
Some of the popular DTC brands examples are:
- Daniel Wellington’s
- Dollar Shave club
- Warby Parker
- Glossier
- Away
We recently shared Best Direct To Consumer Brands that would surely help you learn more about DTC and how it works.
What’s Next?
With the growing popularity of the DTC eCommerce brands, we will be seeing much more eCommerce brands adopting this business model. As a customer, it means a much better customer experience, better prices, and high-quality products.
And as a DTC brand, this means more profit, fewer resources to handle, and higher engagement with the customers. But that is only possible when you can present your products in the best way possible. From choosing your brand name to your product photo editing, everything will play a key role here.
And when that’s the case PixelPhant will help you. Here is a guide on How to start a DTC eCommerce brand.
PixelPhant is a professional editing service helping eCommerce edit their product image and present them in the most eye-catching way. Get a free trial of our service now.