D2C eCommerce (Direct-to-Customer) Business Model: A Brief Guide
Even though e-commerce businesses were an increasing trend before the pandemic, it was the pandemic that ultimately “forced” entrepreneurs to go online. Due to the lockdowns and other restrictions imposed by governments worldwide to curb the pandemic, the only way for e-commerce businesses to thrive at the time was not only to go online but also to establish their digital or online presence with a good fulfillment center. And this is where the new e-commerce business model was born: the D2C or “direct-to-customers” business model.
What is D2C (Direct-to-Customers)?
D2C or “direct-to-customer” e-commerce business model is a model wherein the manufacturer or service provider directly sells to the customers (hence “direct”) rather than needing a mediator or Third-party to do the selling. This allows brands and companies to enter the market directly instead of relying on Third parties such as retailers.
What Are The Benefits of D2C?
There are several benefits of adopting the D2C business model. Perhaps the main advantage of D2C is giving brands and companies complete control over their product and marketing strategies. Since they don’t rely on retailers, they have total control on how they’ll manage and sell their products.
Aside from total control, the D2C model can also help in reducing costs and higher potential margin profits. Since the D2C model does not rely on any third-party sellers, this can minimize any possible fees that they may otherwise incur. This also allows them to have a higher profit margin.
What’s the Difference Between D2C (“Direct-to-Customers”) and B2C (“Business-to-Customers”)?
Some are confused between D2C and B2C because they seem similar. But no, D2C and B2C are different, and here’s how:
B2C a business model wherein businesses sell goods to individuals for their private use. In a way, both e-commerce models are sold to individuals or customers. But the key difference is that the B2C model relies on third parties to sell products to customers while the D2C eCommerce model does not.
Some Tips to Start Implementing a D2C Model
Here are some tips to help you implement a D2C eCommerce business model plan :
Build customer relationships – if you come from a B2C model, you’ve most likely relied on retailers or any third party to do the selling for you, which results in an impersonal relationship between your company and your customers. Even if they know your product and your brand, they only get to know you through that third party. Now that you’re going on the front line, it’s time for you to establish a relationship with your customers.
Get to know your customers – Customer relationships are significant because you get to build trust with your customers and get to know your customers more. This can help you understand their needs and wants in the market.
Establish a robust digital presence – establishing a robust digital presence does not only mean having social media or even a website. That means your company has an integrated system in the online world – from social media and your business’ website to your digital store points.
Take advantage of online and social media marketing – The internet, especially social media platforms such as Facebook and Instagram, are great platforms for your marketing campaigns. So, please take advantage of virtually every social media platform and use them for your marketing campaigns.
Find a Fulfillment center in China– Since most of the niches are produced in China, You have to find a fulfillment center in China that can help you maintain your supply chain and brand your products.
Deliver Your Products With FULFILLMEN. We are One Of The Leading Fulfillment Center In China
After you’ve implemented a D2C model for your business. It’s time to figure out how to deliver your products to your customers. FULFILLMEN is a fulfillment center located in China that can help you deliver your products to your customers! We specialize in e-commerce solutions, order fulfillment solutions, factory sourcing, freight, FCL and LCL shipping, and last-mile delivery.
If you are interested in setting up your own D2C business, kindly contact us at (Sign Up).